Karnataka to Reconsider Funding Strategy for Gaming under Gaming Policy 2017-22by Amit K. Marketing Manager
The Karnataka legislature has adopted a bill modifying the Police Act of 1963 to prohibit internet gaming and gambling. The wide scope of the amendment sparked industry worries about the impact it may have on the gaming industry. Bengaluru is home to a number of in-house gaming businesses, notably the Sequoia Capital-backed Mobile Premier League.
According to the Karnataka Animation, Visual Effects, Gaming, and Comics Policy 2017-22, the growth in Bengaluru and Karnataka for animation services, VFX services, and game developers has been the most prolific compared to any other state in India during the last five years (AVGC Policy).
The government has established a corpus fund of INR 20 crores under the AVGC Policy to finance potential start-ups and MSMEs in the AVGC industry and is in the final stages of shortlisting firms. Now, in light of the new law, reports suggest that officials are rethinking their funding approach.
An official stated that they will examine their company strategy before making an investment decision. Only gaming applications that assist users in improving their gaming abilities would be supported, he stressed. The apps must also be available on Google Play and the App Store. The government would invest up to Rs 2 crore on an AVGC startup. Every year, about 600 gaming start-ups are launched in India, and the sector is worth Rs 10,000 crore.
In order to promote the industry, the department would follow the framework and the legislation, according to IT and BT minister CN Ashwath Narayan. In Karnataka, there are around 91 gaming startups. According to the minister, the government is dedicated to encouraging entrepreneurs, especially innovators in the gaming business.
CAIT has sought the exemption from the proposed law in Karnataka
The Confederation of All India Traders (CAIT) has requested that Indian internet gaming platforms be exempted from a planned law in Karnataka that would prohibit online gaming and betting. The Karnataka government's decision to postpone the Karnataka Police (Amendment) Compliance Act, 2021 (approved late September 21) might be viewed as a blow to the state's status as a tech-hub and start-up capital. In a statement, Roland Landers, CEO of the All India Gaming Federation, expressed his worries about the change.
Ramana Reddy recently shared his views
Speaking of the gaming sector, Karnataka Additional Chief Secretary, Commerce and Industry Department Ramana Reddy recently shared at the CII summit that Karnataka has had an investment of around $250 million US dollars in the last five years and has the potential to create 20,000 new jobs in the next five years. They are also establishing an Esports Lab, where awards for esports activities will be awarded when the Asian Games are hosted. They aim to inspire people to compete and win medals at the next Asian Games. The game business will help young people develop their cognitive talents.
They wish to promote, nurture, and guarantee that it expands in a controlled and orderly manner. Karnataka's biggest USP, he would argue, is the cooperation between industry, academics, and the government, where they have occasionally included the industry itself in crafting our policies.
The legal experts of FIFS (Federation of Indian Fantasy Sports) believe that the bill's agenda contradicts a slew of court decisions. In reality, the Supreme Court has affirmed the legality of online fantasy sports in a ruling dated 30 July 2021, noting that the question of whether fantasy sports format constitutes to gambling, betting, or wagering is no longer res integra.
Karnataka now joins neighboring states Telangana, Andhra Pradesh, and Tamil Nadu in prohibiting online games with monetary or stakes. The Madras High Court recently overturned the Tamil Nadu law, and the administration is now considering whether to appeal or propose a new amendment.
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