Sequoia Capital-funded Mobile Premier League (MPL) was among the many first few gaming startups that started blocking entry to customers within the Indian state of Karnataka on Wednesday following a ban on on-line gaming.

The legislation, which got here into impact late on Tuesday, bans on-line video 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 newest ban has intensified issues that rising state rules might hit the nascent however booming gaming sector in India, the place overseas buyers have pumped in thousands and thousands of {dollars} in current months.

On Wednesday morning, MPL’s gaming app confirmed messages to customers in Karnataka that mentioned: “Sorry! The law in your state does not permit you to play Fantasy sports,” “Fantasy games are locked,” and “cash games are locked.”

The gaming app provides fantasy cricket and soccer video games and permits real-money wagering on them.

Dream11, one in all India’s hottest gaming apps backed by Tiger Global, was nonetheless operational, however Paytm First Games was not.

Dream11 declined to remark, whereas MPL and Paytm didn’t instantly reply.

Karnataka, dwelling to a few of the world’s greatest tech corporations and India’s tech capital Bengaluru, is the newest Indian state that has banned such on-line video games after Telangana and Andhra Pradesh. Tamil Nadu had additionally imposed such bans, however its invoice was struck down by its excessive courtroom.

An business supply had advised Reuters earlier that these states have been vital for the gaming enterprise and account for roughly 20 p.c of the full enterprise for corporations.

Roland Landers, the chief government of the All India Gaming Federation, mentioned “the industry will challenge this in court and seek legal recourse.”

Two different business sources advised Reuters on Wednesday that avid gamers and a few corporations have been planning to file courtroom challenges in opposition to the brand new Karnataka legislation.

The legislation imposes hefty fines and jail phrases on violaters and has been applied amid rising issues that on-line gaming platforms, like playing, are addictive and may trigger monetary hurt.

© Thomson Reuters 2021