Immediately after ’s assent, the Karnataka government imposed a law banning online betting games, followed by the sending of amendments to the Karnataka Police Act 1963. This meant an imprisonment of at least three years including a penalty of upto Rs.1 lakh.

On the other hand, Ficci nudged the state government to revise the legislation which bans different kinds of online gaming across monetary stakes, as it viewed that the law on games of skill could be unconstitutional as well as affect a major part of the revenue.

Any article used or intended to be used as a subject or means of gaming, including computers, computer systems, mobile apps, the internet or cyberspace, virtual platforms, computer networks, computer resources, any communication device, electronic applications, software and accessory or means of online gaming, any document, register, record, or evidence of any gaming in e-sports, any document, register, record, or evidence of any gaming in e-sports, any document, register, record, or evidence of any gaming in e-sports.

The law prohibits internet games that are termed as ‘games of chance’. Gaming was defined as "all forms of wagering or betting, including in the form of tokens valued in terms of money paid before or after issue, or electronic means and virtual currency, electronic transfer of funds in connection with any game of chance, but not a lottery or wagering or betting on horse races run on any race course within or outside the US”.

Additionally if the bill prohibits online skill games, law-abiding Indian businesses will leave the market, and players will gravitate to dangerous offshore and betting apps.

Other major offshore and Indian gaming companies are currently operating in Karnataka despite the fact that they are banned, according to the report.

Users have no way of distinguishing between genuine and non-legitimate operators because all self-regulated or certified players would not be active.

"We hope that the government will reconsider the law in light of Supreme Court precedent and release a final notification after considering stakeholder ideas and concerns, as well as public opinion”, states the chamber.

The move by the Karnataka government is also seen as a blow to the state's status as a tech hub and startup capital.

"We feel that, in addition to being unconstitutional, a ban on skill games will result in a tremendous loss of money, jobs, and opportunity for players to enhance their talents", adds the chamber.