In a recent change of events, Karnataka, a state in India, has proposed a ban on online gambling games that involves fiat currencies to safeguard gullible people. While this step might have been taken with the right intentions, it will severely impact the skill-game startups and coincidentally is ill-advised as it goes against several legal and constitutional positions. 

Karnataka bill to ban online gaming will be setback to Indian startup’s . We @CAITIndia endorse ban on foreign apps but also ban Indian games skills will kill gaming industry @BSBommai pls reconsider @JPNadda @BJP4India @PMOIndia @PiyushGoyal pic.twitter.com/dEWFqgyQAg

— Praveen Khandelwal (@praveendel) September 20, 2021

Moreover, the submitted bill covers an umbrella term of online gaming and gives no clear distinction between online games of skill or luck-based games. Furthermore, it conveniently excludes horse race betting and lottery. While the bill only covers Indian citizens, it might have severe effects on the entire gaming industry. 

How would banning Online Gaming affect the Gaming Industry?

The online gaming industry includes two types of games – luck-based and skill-based. While luck-based games can be considered gambling if put under a microscope, skill-based games are entirely a different genre. The basis of the submitting bill is to protect the unsuspecting audience and avoid cyber fraud. 

The Karnataka government took this step to ban online gaming to restrict illegal offshore gambling that has recently become a concerning issue. Many platforms use the ode of gaming platforms to promote offshore gambling, which is illegal in most countries. 

If the bill passes, Indian citizens will not be able to participate in any type of online gaming that involves payments using Indian money. While the law will only have direct consequences on Indian citizens, it will thoroughly affect the entire gaming industry as India is one of the most significant contributors to eSports with millions of players. 

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However, cyber frauds and threats are quickly becoming a thing of the past thanks to the inclusion of blockchain technology in the gaming world. Blockchain gaming is a new and fast-growing industry because of its rewarding nature and secure work protocols. 

Recently Blockchain Magazine covered an up-and-coming blockchain gaming platform, DeFi11, that is built on a Polygon network to ensure the safety of the users apart from quick and low-cost transactions. 

Platforms such as DeFi11 might be the solution to the problem posed by the Karnataka government as participating in blockchain gaming not only requires a certain level of understanding but also it is secured with blockchain technology.  

What does the future of online gaming look like?

While the implications of the ban will only be felt if the bill is passed, it will surely affect the entire online gaming industry. However, blockchain technology acts as a beacon of hope for all eSports players as it would instill a new era of online gaming with better security, features, and rewards.