The Karnataka state government is advancing plans to introduce a bill that would permit licensed online betting on horse-racing events. This legislation, which amends the Karnataka Race Courses Licensing Act of 1952, is scheduled to be placed before the legislature during the winter session, set to begin on December 8 in Belagavi.
Senior officials confirmed the proposed amendments aim to create a legal framework for online wagering on racing, aligning Karnataka with the “current trend of expanding exposure to racing events,” following practices already established in states like Tamil Nadu, Telangana, Maharashtra, and West Bengal.
Justification: Skill vs. Chance
The proposal’s core justification rests on legal precedents distinguishing horse racing from other forms of online gambling. Finance department officials cited judicial observations, including those from the Supreme Court, which describe wagering on racing as an activity driven primarily by “skill and knowledge.”
“Horse-race betting is driven largely by skill and knowledge, as the Supreme Court has noted, but it must be carried out only through authorised platforms,” an official familiar with the proposals said.
By expanding regulated participation through authorized online platforms, the finance department views this legislative change as a potential new source of additional state revenue.
The Looming Constitutional Battle
The move to legalize online horse-race betting comes even as Karnataka prepares to launch a major constitutional challenge against the federal government. The state is expected to challenge the Union government’s Prohibition of Online Gambling Act (PROGA) before the Supreme Court.
Senior officials argue that:
- State Authority: Betting and gambling fall squarely under the State List in the Constitution.
- Constitutional Overreach: Officials contend that the Union government has exceeded its constitutional authority by legislating on a state subject, arguing that the Centre cannot claim jurisdiction simply because the wagering occurs through digital transmission.
- “Colourable Exercise of Power”: One senior officer described PROGA as a “colourable exercise of power” that risks upsetting the federal balance, asserting that “digital transmission does not magically convert a state subject into a Union subject.”
The state is currently “actively evaluating legal options” and expects to join pending petitions that raise similar constitutional challenges.
Other Key Bills on the Winter Session Agenda
The horse-racing amendment is one of 31 measures slated for the winter session. Other significant legislative proposals awaiting discussion between the law and home ministries include:
- Karnataka Mis-Information Regulation Bill 2025
- Karnataka Hate Speech and Hate Crimes (Prevention and Control) Bill 2025
- Karnataka Rohith Vemula (Prevention of Exclusion or Injustice) (Right to Education and Dignity) Bill 2025
- Karnataka Social Boycott (Prevention, Prohibition and Redressal) Bill 2025: This major proposal aims to address caste-based boycotts and punishments imposed by extrajudicial bodies, with the government citing the inadequacy of existing laws to deal with such practices.