The Karnataka government has drawn up a bill allowing online wagering or betting on horse-racing games, setting the stage for a direct confrontation with the Centre’s Online Gaming Bill, 2025, which imposes a blanket ban on all real-money games, regardless of whether they are skill- or chance-based.
Following amendments proposed by the Finance Department to the Karnataka Race Courses Licensing Act, 1952, the state Department of Parliamentary Affairs has scheduled the bill for introduction during the winter session of the legislature, starting December 8, Deccan Herald reported.
According to government officials, the bill aligns with the “expanding exposure to racing events” and the online betting practices already “prevalent” in race clubs in other states, including the Hyderabad Race Club in Telangana, the Madras Race Club in Tamil Nadu, the Royal Western Indian Turf Club Ltd in Maharashtra, and the Royal Calcutta Turf Club in West Bengal.
“Betting in horse racing is mainly skill- and knowledge-based, as observed by the Supreme Court. However, it should be done through a licensed platform,” the report said, citing sources. The Finance Department reportedly views this as a new revenue stream, with online betting expected to draw wider participation from racing enthusiasts.
Is Online Horse Betting Legal?
The Supreme Court of India, in the Dr. K.R. Lakshmanan v. State of Tamil Nadu judgment, recognised horse racing as a game of skill rather than a game of chance.
As a result, online wagering or betting on horse racing does not fall under the definition of “gaming” as per the Karnataka Police (Amendment) Act, 2021, and the Karnataka Race Courses Licensing (Amendment) Act, 2020.
However, this interpretation clashes with the Centre’s Promotion and Regulation of Online Gaming Act, 2025, which bans all real-money games, irrespective of whether they are based on skill or chance.
State vs Centre Clash Inevitable?
Speaking to MediaNama, Jay Sayta, a tech and gaming lawyer, said a State–Centre collision on the regulation of online betting is inevitable, with the matter likely to reach the Supreme Court.
“If both the Centre’s Online Gaming Bill and Karnataka’s horse-racing betting bill are implemented, the matter will go straight to the Supreme Court,” Sayta noted.
“The key issue is whether skill-based games — including horse racing — are constitutionally protected as a form of business under Article 19(1)(g), or whether Parliament can override state powers by invoking online gaming regulations,” he said.
Satya also pointed out that under Section 18 of the Promotion and Regulation of Online Gaming Act, 2025, the Centre has the authority to override any inconsistent law.
“The provisions of this Act shall be in addition to, and not in derogation of, the provisions of any other law for the time being in force, and in case of any inconsistency between this Act and any other…
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