Karnataka’s notification banning online gaming leaves the gaming industry disappointed and confused


New Delhi, Oct 6 | The Karnataka government’s notification banning all skill games that involve entry fees, has left the industry confused and disappointed as it has come within few days of the state home minister saying that the state will implement the rules in about two months.

Earlier, the Home Minister of Karnataka had said that the government will notify the rules under the amended laws first and then issue a final notification after examining suggestions and objections from stakeholders. He further said that the government hopes to implement the rules in about two months.

However, in an about turn, the Karnataka government issued a notification on October 5 immediately banning all skill gaming apps that involve entry fees.

Roland Landers, CEO of AIGF said, “The industry is quite disappointed at this obvious setback to skill gaming in Karnataka, a State that has always stood for innovation and ease of business.

“What is especially disappointing is that the industry did see hope when the State Home Minister had given an encouraging statement on the formulation of a new e gaming law that we were eagerly looking forward to. This ban has come into effect and it will result in setbacks for the burgeoning sunrise gaming industry as a whole including game developers and publishers.”

The controversial Bill had sparked off huge protests from several quarters. Prominent industry bodies like All India Gaming Federation (AIGF) and The Federation of Indian Fantasy Sports (FIFS) had opposed the ban.

IAMAI, the industry body representing Internet and tech companies, had said the Bill will hurt Karnataka’s position as the country’s startup hub and will lead to loss of jobs and revenue for the state. They also added that the Bill will create a cloud of confusion and uncertainty. Investors may pull out their investments, as of which many existing companies may consider shifting base from the state.

Praveen Khandelwal, the National Secretary General of the powerful trade bodym, Confederation of All India Traders (CAIT), said, “Unfortunately, the Karnataka Bill does not distinguish between a game of skill and a game of chance. Game of chance is pure gambling and should be rightfully banned. However, by including games of skill in the ambit of the Bill, it has not only gone against established jurisprudence but threatens the thriving Indian gaming startup sector.”

Source: IANS

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Weekly Technical Share Market Outlook

Weekly Technical Share Market Outlook

The Indian market recovered with modest gain against the resilient global cues. Throughout the week, Sensex traded in a narrow range following an uneven move. Sensex ended at 54884.66 gaining 558 points or 1.03 percent while Nifty settled at 16352.45 with 86 points or 0.53 percent on a weekly basis. While Banknifty ended at 35613.30 levels with strong bounce with an upside of 3.90 percent in a week.

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INDIA VIX has cooled off during the week with 7.01 percent and has settled at 21.48 levels. Investors and traders may watch out key events such as the RBI meet in the second week as well as the US Fed meeting likely to be on 14-15 June for monthly expiry. As corporate results are likely to end soon stocks would expect less volatility in upcoming days. In Nifty stocks, HDFCLIFE gained 9.61 percent while DIVISLAB shed 18.41 percent in a week. Sectorally Nifty Finance saw the highest gains of 4.32 percent followed by the Nifty Auto with 3.26 percent. On the flip side Nifty Pharma, Energy, Realty and PSE lose more than 3 percent each on a weekly basis. However Midcap gained 0.77 percent while Smal lcap dropped by 3.42 percent.

Technically, Nifty has formed a bullish candle on the weekly chart with a long tail suggesting strong support around 15900 levels, while on the upside 16800 may act as strong resistance. Index has taken support from the previous horizontal line & closed above 21-days Simple Moving Averages that indicates further pullback rally in the near term.

Indicators such as RSI remained in the neutral zone while MACD suggest some positive cross over observed in daily time frame suggest some sign of reversal. Coming to the OI Data, on the call side the highest OI witnessed was 16500 followed by 16800 strike prices while on the put side, the highest OI was at 16000 strike price. Overall, Nifty is having support at 16000 mark while on the upside 16500 followed by 16750 may act as an immediate resistance. While Bank nifty has support around 34300 while resistance is placed at 36800 on weekly chart.

Om Mehera
Research Associates
Choices Broking

Souce: Choice India


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