Karnataka becomes the newest state to block fantasy sports and skill-based gaming after the law came into effect starting Tuesday.

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Also Read: Karnataka To Ban Online Betting And Fantasy Sports Games, Impose Strict Fines

Reported first by Reuters, the law bans online games involving betting and wagering and  “any act or risking money, or otherwise on the unknown result of an event including on a game of skill.”

The law was implemented amid growing concerns that such fantasy sports and skill-based gaming platforms are addictive and can cause financial harm to the player. The law imposes hefty fines as well as prison terms for the violators.

This ban has cast an eclipse on the budding online fantasy-sports sector, which has attracted investments worth millions of dollars.

Sequoia Capital-funded Mobile Premier League, PayTM and many other fantasy sports startups commenced blocking access to users in the aforementioned state. MPL’s app, for example, shows an error stating, “Sorry! The law in your state does not permit you to play Fantasy sports,” “Fantasy games are locked,” and “cash games are locked.”

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To the uninitiated, MPL offered fantasy cricket and football games, allowing players to wager actual money based on the probability of winning or losing teams. 

MPL

Also Read: PayTM, PayTM First Games Banned By Google Play Store For Promoting Gambling

Surprisingly, as per the report, Dream11 continued being active for players today. In a previous report, an industry source in a conversation with Reuters revealed how Karnataka was one of the many states that were important for the fantasy sports-skill gaming space, comprising 20 percent of total business for companies. 

Roland Landers, the chief executive of the All India Gaming Federation, said “the industry will challenge this in court and seek legal recourse.” Industry sources have added that gamers and game companies are planning to challenge the new Karnataka law in the court.

Do you think such fantasy-sports and skill-based gaming be categorized under the umbrella of online gaming or do you think such games are tarnishing the reputation of online video games for all? Tell us in the comments below and keep following Indiatimes Gaming to get your gaming fix.