The Karnataka Government plans to legalize online betting on horse racing through a proposed amendment to the Karnataka Race Courses Licensing Act, 1952, expected to be introduced in December 2025. This move aims to enable licensed platforms to offer online wagering on skill-based games, despite conflicting with the Union Government’s Promotion and Regulation of Online Gaming Act, 2025 (PROGA), which imposes a blanket ban on all real-money online games across India. While PROGA is not yet enforced and is under constitutional challenge, Karnataka’s initiative reflects the ongoing debate over whether regulation should precede prohibition in the online gaming sector.

The article highlights that betting and gambling traditionally fall under state jurisdiction, with horse racing recognized by the Supreme Court as a game of skill, allowing regulated betting in several states. Karnataka’s proposed bill seeks regulatory certainty, emphasizing that prohibition often drives activities underground, fostering illegal markets. The author advocates for a balanced regulatory approach involving licensing, responsible gaming, and anti-money laundering measures, citing international examples where regulation has successfully managed online gaming. Karnataka’s move underscores the critical debate on whether comprehensive regulation can better address online gaming complexities than outright bans, potentially promoting economic growth while protecting players.