India's Silicon Valley state seeks to ban online gaming, worrying booming industry

FILE PHOTO: Commuters watch videos on their mobile phones as they travel in a suburban train in Mumbai, India, April 2, 2016. Picture taken April 2, 2016. REUTERS/Shailesh Andrade

BENGALURU (Reuters) - The Indian state of Karnataka, home to India's Silicon Valley, has proposed a ban on online games involving betting and wagering, sparking concerns that growing state regulations could hit the nascent but booming sector.

Karnataka is proposing an amendment to the Karnataka Police Act to include such online games, seeking to ban "any act or risking money, or otherwise on the unknown result of an event including on a game of skill," according to the bill seen by Reuters. Many offences under the law already attract prison time, and the bill proposes to increase these penalties.