The Karnataka High Court adjourned a final decision on the petitions challenging the legality of the state's new rule prohibiting online gaming until December 22.

The petitions are being heard by a bench consisting of Chief Justice Ritu Raj Awasthi and Justice Krishna S Dixit. For the petitioners, senior lawyers Abhishek Manu Singhvi and Mukul Rohatgi contended that the statute was unsustainable.

After Governor Thawar Chand Gehlot gave his consent, the Karnataka government issued the law prohibiting betting and wagering in online games on October 5. During its most recent session, the Karnataka Legislature enacted amendments to the Karnataka Police Act, 1963.

The state government has taken the stand before the court that its amendments do not ban online ‘games of chance’ or ‘game of skill’, they restrain people from risking money “on the happening of an uncertain event and online platforms are prohibited from inducing gullible public with lure of unattainable prizes”.

CIO Insider reported that, a series of amendments to the Karnataka Police Act 1963 were then delivered to the state immediately after a legislation prohibiting internet betting games was enacted, resulting in a three-year imprisonment and a fine of Rs.1 lakh.

When the rule went into effect on October 5, gaming platforms such as Mobile Premier League, Paytm First Games, Games24X7, and others shut down their sites in Karnataka, although Dream11 remained operational.

Dream11, on the other hand, claims to be in compliance with all requirements as Karnataka's new gambling and betting law only pertains to gambling and betting, not skill games.

According to the report, the Federation of Indian Fantasy Sports (FIFS) conveyed the opinion of a former Supreme Court judge on the subject, who stated that the Karnataka Police (Amendment) Act, 2021, did not apply to its member fantasy sports operators.

Since the company stated that India's hon'ble courts uphold the FIFS model of Fantasy Sports, which does not constitute gambling, betting, or wagering.

Dream11 had earlier indicated that the allegation was ‘motivated’ and that the company was investigating legal options before halting operations in the state.

The timing of the new rule could not have been worse for gaming companies, with Karnataka being one of the three states with the most individuals using these platforms.

“However, as a result of the current media attention, our Karnataka users have expressed grave concerns and anxiety for their safety and security. We have chosen to halt operations in Karnataka to assuage our users' fears. This ruling has no bearing on our legal rights or claims”, says the company.