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Haryana’s New Anti-Gambling Act: Is It Actually Anti-Online Gaming?
- The $3.8 Bn online gaming industry in India faces uncertainty due to varying state regulations, with Haryana being the latest to introduce anti-gambling laws penalizing both offline and online betting.
- Online gaming startups are concerned about the impact of these laws, with the government cracking down on activities deemed as betting and gambling, leading to legal ambiguity.
- State governments, including Karnataka, are formulating their own rules to regulate the online gaming industry, creating challenges for startups in the sector.
- Legal experts emphasize the need for a clear distinction between games of skill and games of chance, which remains a contentious issue in India's gambling regulations.
- The lack of central regulations for online gaming adds to the complexity, and the industry awaits clear guidelines from the government for a level playing field.
- The Haryana Prevention of Public Gambling Act, 2025 defines gambling and games of skill, but there is ambiguity in the interpretation of certain clauses.
- Online gaming companies are facing challenges in navigating the legal landscape, with courts and regulators using different tests to determine skill versus chance in games.
- The gaming industry, projected to reach $9.2 Bn by FY29, is grappling with the absence of a nationwide regulatory framework, leading to uncertainty for startups.
- Some gaming platforms have halted operations in states like Haryana due to regulatory concerns, while others are restructuring their models to comply with evolving laws.
- Industry bodies like FIFS are advocating for clarity in regulations, especially for games of skill, to ensure a conducive environment for gaming startups in India.
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