Karnataka becomes the new state to block fantasy sports and games of skill after the law comes into force from Tuesday.
Read also: Karnataka to ban online betting and fantasy sports games, impose severe fines
First reported by Reuters, the law prohibits online games involving betting and wagering and “any act or risk of money, or otherwise on the unknown outcome of an event including on a game of skill”.
The law was implemented amid growing concern that these fantastic sports and skill game platforms were addictive and could cause financial damage to the player. The law imposes heavy fines as well as jail terms for offenders.
This ban has eclipsed the burgeoning online fantasy sports industry, which has attracted multi-million dollar investments.
Mobile Premier League, PayTM and many other fantastic sports startups funded by Sequoia Capital have started blocking user access in the aforementioned state. The MPL app, for example, displays an error stating: “Sorry! Your state law does not allow you to play fantastic sports”, “Fantastic games are locked” and “Cash games are locked” .
Also Read: Kids’ iPhone Game Had Secret Play Game That Stole Real Money
For the uninitiated, MPL has offered some fantastic cricket and football games, allowing players to bet real money based on the likelihood of winning or losing teams.
Also Read: PayTM, PayTM First Games Banned By Google Play Store To Promote The Game
Surprisingly, according to the report, Dream11 continued to be active for gamers today. In a previous report, an industry source in a conversation with Reuters revealed that Karnataka was one of several important states for the fantasy sports skills game space, accounting for 20% of total business in companies.
Roland Landers, managing director of the All India Gaming Federation, said “the industry will challenge this in court and seek legal recourse.” Industry sources added that gamers and gaming companies plan to challenge Karnataka’s new law in court.
Do you think these fantastic sports and skill based games fall under the umbrella of online games or do you think these games are tarnishing the reputation of online video games for everyone? Tell us in the comments below and keep following Indiatimes Gaming to get your gaming fix.