Karnataka moves toward legal betting and gambling regulation

Government drafts new gambling legislation

Karnataka’s government has begun drafting a bill to regulate the state’s gambling sector. Home Minister Gangadharaiah Parameshwara confirmed the move during a press conference on April 9. He said he had chaired a meeting with the state’s IT Minister and industry representatives to discuss the issue.

“I chaired a meeting regarding online betting and gambling yesterday along with the IT Minister. Representatives from the industry were called. There is nothing to regulate them so far. They have agreed to the introduction of a licence system and a regulation as per law. Once the draft is submitted, we will bring in a new law,” Parameshwara said.

Karnataka could influence national trends

As India’s eighth most populous state, Karnataka holds significant weight. If it enacts a legal framework for gambling, it could inspire other states to follow.India lacks a central law that governs online gambling. Instead, state governments must decide how to regulate the sector. The Public Gambling Act of 1867 bans physical gambling houses but does not mention online betting.

Currently, only Goa, Daman, and Sikkim allow casinos. Sikkim also permits certain types of online gaming. Horse racing remains one of the few forms of legal betting, but only through racetracks or official totes. The Indian Premier League (IPL) continues to draw strong betting interest, both domestically and abroad. While the law does not officially permit IPL betting, its popularity has helped generate demand for related B2B services.

A legal framework in Karnataka could formalize this activity, attract operators, and generate tax revenue for the state. The move would also help clarify standards and promote closer collaboration between the state and gambling providers. However, national officials remain concerned about offshore operators.