written and last updated by
Sam Smith at
09 Apr 2025
Journalist, Editorial Department
A new legal framework aimed at regulating the iGaming sector is being developed in Karnataka, India. State Home Minister G. Parameshwara announced that a special committee comprising senior officials and industry representatives has already been established, with members tasked to prepare a draft law within a month.
"We held a meeting regarding online betting and gambling. Currently, there is no regulation in this area. Industry representatives have supported the idea of licensing the iGaming sector," the Karnataka Home Minister stated.
The goal of the new legislation is to foster the growth of the gaming industry. According to Minister of Information Technology Priyank Kharge, the state aims to strike a balance between consumer protection and supporting an innovative sector.
Karnataka plans to follow in the footsteps of Chhattisgarh, where platforms offering skill-based gambling are permitted. Kharge noted that the legal iGaming market in India is valued at $4 billion (₹345 billion), with Karnataka alone contributing $162 million (₹14 billion) in annual tax revenue. The sector also employs over 150,000 people.
However, despite the current ban, offshore platforms and illegal applications continue to infiltrate even rural areas. The minister expressed concern over the rapid growth of the "shadow" sector, which is rife with dubious fundraising schemes, financial fraud, data breaches, and cybercrime.
Representatives from industry organizations, including the E-Gaming Federation (EGF), the All India Gaming Federation (AIGF), and the Fantasy Sports Federation (FIFS), also participated in the discussions. They presented a joint "Code of Ethics" that could serve as a foundation for future regulations.
In related news, Zitro has expanded its global presence by opening a new technology campus in India.
