Bill Tabled In Karnataka Assembly To Ban Online Gambling And Betting

The bill titled Karnataka Police (Amendment) Act, 2021, includes all forms of wagering or betting, including in the form of tokens valued in terms of money paid before or after the issue of it. It has banned electronic means and virtual currency, electronic transfer of funds in connection with any game of 'chance'. However, there is no ban on lottery, or betting on horse races on any racecourse within or outside Karnataka.

The statement of objects and reasons in the bill states: "It is considered necessary further to amend the Karnataka Police Act, 1961 Karnataka Act 4 of 1964, to provide for effective enforcement of the provisions of this Act by making offences under Chapter VII and under section 90, 98, 108, 113,114 and 123, as cognizable offence and non-bailable except section 87, which is made cognizable and bailable."

Further, "Include the use of cyberspace including computer resources or any communication device as defined in the Information Technology Act, 2000 in the process of gaming, to curb the menace of gaming through internet, mobile app, to enhance the punishment for gaming for the orderly conduct of citizens and to wean them away from the vice of gambling."

The Bill seeks to amend section 2 (3) of the Principal Act by inserting the following:

(a) after the words "Profit or gain" occurring in two places the words "or otherwise" shall be inserted.

In clause (7):

(i) for the words "gaming" does not include a lottery but includes all forms of wagering or betting in connection with any game of chance except wagering or betting on a horse-race run on any racecourse within or outside the State, when such wagering or betting takes place the words gaming means and includes online games, involving all forms of wagering or betting, including in the form of tokens valued in terms of money paid before or after issue of it, or electronic means and virtual currency, electronic transfer of funds in connection with any game of chance, but does not include a lottery or wagering or betting on horse-race run on any race course within or outside the State, when such wagering or betting takes place shall be substituted.

Further, in the explanation to item (i) the following shall be inserted at the end:

Any act of risking money, or otherwise on the unknown result of an event including on a game of skill and any action specified above carried out directly, or indirectly by the players playing any game or by any third parties.

Also, Clause 11 of the Principal Act, is to be substituted by stating:

"Instruments of gaming includes any article used or intended to be used as a subject or means of gaming including computers, computer system, mobile app, or internet or cyberspace, virtual platform, computer network, computer resource, any communication device, electronic applications, software and accessory or means of any online gaming, any document, register or record or evidence of gaming in electronic or digital form, the proceeds of any online gaming or any winning or prizes in money or otherwise distributed or intended to be distributed in respect of any gaming".

Explanation: The words computer, communication device', computer network computer resource, computer system, cyber cafe' and electronic record used in this Act shall have the respective meaning assigned to them in the Information Technology Act, 2000 (Central Act 21 of 2000)".

Further amendments are proposed to clause (12) by interesting the following.

Clause (12A): 'Online gaming' means and includes games as defined in clause (7) played online by means of instruments of gaming computer, computer resource, computer network, computer system or by mobile app or internet or any communication device, electronic application, software or on any virtual platform.

In clause (13) the following shall be inserted at the end, namely,

Including a recreation club or on a virtual platform, mobile app or internet or any communication device, electronic application, software, online gaming and computer resource as defined in Information Technology Act, 2000/Central Act 21 of 2000 or under this Act.

The bill also proposes to amend section 78 of the Principal Act.

In sub-section (1) in clause (a) ,"enclosure, vehicle, vessel or place the words and figures or at cyber cafe or online gaming involving wagering or betting including computer resource or mobile application or internet or any communication device as defined in the information Technology Act, 2000 (Central Act 21 of 2000) shall be inserted."

In clause (vi) after the words depends on chance or the words 'skill of other shall be inserted.

After clause (vi) the following shall be inserted namely:

(vii) any act on risking money or otherwise on the unknown result of an event including on a game of skill, or in the hanging para for the words "one year the words "three years and for the words "one thousand the words 'one lakh shall be substituted. in the proviso for the words "one month the words "six months and for the words "live hundred the words ten thousand" shall respectively be substituted;

In sub-section (2) after the words 'subsection or present the words or aids or abets shall be inserted;

For the words "one month", the words "six months and for the words "five hundred", the words "ten thousand"shall be respectively substituted:

In sub-section (3), for the words "three months" the words one year and for the words "three hundred" the words "twenty thousand" shall be respectively substituted.

Amendment of Section 79.- In section 79 of the Principal Act,

(i) in the hanging para, for the words "one year" the words "three years" shall be substituted and after the word 'fine' the words 'up to rupees one lakh' shall be inserted;

In the proviso. (a) in clause (a) for the words "three months', the words 'six months' and for the words 'five hundred' the words 'ten thousand' shall be respectively substituted;

(b) in clause (b) for the words 'six months', the words 'one year' and for the words five hundred the words 'fifteen thousand' shall be respectively substituted; and in clause ( c ) for the words "nine months the words "eighteen months and for the words one thousand the words twenty thousand shall be respectively substituted

Amendment of Section 80.-In section 80 of the Principal Act,

For the words one year the words three years shall be substituted and after the word fine the words upto rupees one lakh shall be inserted: is the proviso. In clause (a) for the words one month the words six months and for the words two hundred the words ten thousand shall be respectively substituted.

In clause (b) for the words three months' the words "one year and for the words "two hundred the words fifteen thousand shall be respectively substituted, and in clause ( c ) for the words 'six months the words eighteen months and for the words "five hundred the words twenty thousand shall be respectively substituted.

Amendment of Section 87.-In section 87 of the Principal Act,

(a) after the words "suspected to be gaming the words "or aiding or abetting such gaming shall be inserted;

(b) for the words "three months the words six months and for the words three hundred the words Ten thousand shall be respectively substituted.

Amendment of Section 114- In section 114 of the Principal Act, after the words "fine the words "which shall not be less than twenty five thousand but which may extend to rupees one lakh shall be inserted 8. Insertion of section 128A.-After section 128 the Principal Act the following shall be inserted, namely

128A.Certain offences to be Cognizable, Non-bailable,

(1) All offences under chapter VII except section 87; and all offences under section 90, 108, 113, 114 and 123 under chapter VIII shall be cognizable and non-bailable.

2) Offences under section 87 (Gaming in public streets) shall be cognizable and bailable"

Amendment of section 176. In section 176 of the Principal Act, the words and to wagering by persons taking part in such a game of skill shall be omitted.

Background:

The state government had in February informed the Karnataka High Court that it proposes to have legislation for regulating online gambling and betting in the state.

The submission was made while hearing a petition filed by Sharada D R which seeks a complete ban on online gambling and betting. It states that because there is a complete regulatory vacuum as far as online betting and gambling are concerned. There is no regulatory body or governmental structure to regulate and monitor online gambling and betting. As a result, the vulnerable sections of society, particularly the youth, adolescents and even children are prone to hazardous and predatory situations amidst this pandemic.