The Karnataka government is preparing to introduce a bill allowing licensed online betting on horse-racing events in the upcoming winter session of the state legislature, starting December 8 in Belagavi.
The bill seeks to amend the Karnataka Race Courses Licensing Act, 1952 so that authorised platforms can legally facilitate online wagering on horse races
Officials argue that horse-race betting is different from ordinary gambling — relying on “skill and knowledge.” They believe regulated online wagering can expand access, monitor activities, and raise state revenues.
Why Karnataka Is Pushing the Bill
✅ Modernising Horse-Race Betting
Supporters say the move aligns Karnataka with other states (like Tamil Nadu, Maharashtra, Telangana, West Bengal) where regulated horse-race betting — even online — already exists.
💰 Revenue Potential for State Government
The government views regulated online betting as a potential source of additional tax and licensing revenue, leveraging the popularity of horse racing and digital platforms.
🧠 Legal Basis: Betting as “Skill”
Citing past judicial precedents that classify horse-race wagering as a “game of skill”, Karnataka argues this betting should be allowed under state law — not treated like games of pure chance.
A Legal Showdown: State vs Centre
The proposed bill could directly clash with the new Promotion and Regulation of Online Gaming Act, 2025 (PROGA), passed by the Union government. That law broadly bans all real-money online games and gambling — regardless of skill or chance.
Legal experts suggest the battle may end up in the courtroom. Karnataka’s move tests whether states retain their constitutional right to regulate betting — traditionally a “state subject” — even in the face of national legislation.
If both laws remain in force, the final say may rest with the courts to decide whose jurisdiction prevails.
What It Means for Stakeholders
- Horse-racing fans & bettors: Licensed online platforms could offer easier, more regulated access to betting from home — without requiring physical presence at turf clubs.
- State government: The bill could open a new stream of revenue through licensing fees and taxes, and help regulate what’s often an informal or illegal activity.
- Regulators & legal system: If passed, the bill may trigger constitutional litigation, and could influence how other states respond to PROGA 2025.
- Wider online gaming industry: A state-level move like this could set a precedent — potentially encouraging similar legislation elsewhere, or conversely leading to stricter federal oversight depending on court rulings.
What to Watch Next
- Whether the bill is formally tabled and passed in the upcoming winter session (starting December 8).
- How the state defines licensing requirements, eligible platforms, and safeguards to prevent misuse.
- Reaction from the federal government: whether it challenges the bill or allows state-level divergence.
- Potential legal challenges before courts, which will clarify if online horse-race betting by states can coexist with PROGA 2025.
The proposed move by Karnataka to legalise online horse-race betting marks a critical juncture — not just for gambling regulation, but for federal-state balance, revenue policy, and the future shape of India’s online gaming legal landscape.
