THe say authorities is preparing to innovate a federal reserve note that would allow licensed online betting on horse-racing events. The legislation, which amends the Karnataka Race Courses Licensing Act of 1952, is scheduled to be placed before the legislature during the winter session beginning December 8 in Belagavi, senior officials said on Wednesday.The proposal follows practices already in place at race clubs in Tamil Nadu, Telangana, Maharashtra and West Bengal, they added. According to officials, the amendments are intended to align Karnataka with “the current trend of expanding exposure to racing events,” while creating a legal framework for online wagering in the state.FInance department officials argued that horse racing falls into a distinct category compared with other forms of online gaming. They cited judicial observations describing wagering on racing as an activity rooted in 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 department’s proposals said. The department views the change as a potential source of additional state revenue by expanding regulated participation, added the official quoted above.The decision to pursue online racing amendments comes even as Karnataka prepares to challenge the federal government’s Prohibition of Online Gambling Act (PROGA) before the Supreme Court. Senior officials said the state is “actively evaluating legal options” and expects to join pending petitions that argue the Union government has exceeded its constitutional authority. Betting and gambling fall squarely under the State List, officials noted, and they contend the Centre has encroached on powers reserved for state legislatures.“We support regulation, not prohibition, but the Union has no constitutional authority to legislate on betting and gambling,” one senior official said. Describing PROGA as a “colourable exercise of power” that risks upsetting the federal balance, another senior officer said the Centre cannot claim jurisdiction simply because wagering occurs through digital transmission, arguing that “digital transmission does not magically convert a state subject into a Union subject.”The bill is one of 31 measures expected to be taken up during the winter session, according to officials in the know.Among the others are revised versions of the Karnataka Mis-Information Regulation Bill 2025, the Karnataka Hate Speech and Hate Crimes (Prevention and Control) Bill 2025 and the Karnataka Rohith Vemula (Prevention of Exclusion or Injustice) (Right to Education and Dignity) Bill 2025, all of which await discussion between the law and home ministries.Another major proposal on the list is the Karnataka Social Boycott (Prevention, Prohibition and Redressal) Bill 2025, which aims to address caste-based boycotts and punishments imposed by extrajudicial bodies. The government said “existing laws are found to be inadequate” to deal with such practices.
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