Gaming apps have started blocking user access in Karnataka after the state imposed a ban on online betting games. Karnataka notified the ban on Tuesday in accordance with a law that outlaws games that are ‘games of chance’.   

The ban has become a cause of concern as it is being feared that it could hit the young but booming gaming sector in India. The gaming sector has had several foreign investors pump millions of dollars in recent months. 

MPL’s gaming app modified users with messages in Karnataka on Wednesday that said, “Sorry! The law in your state does not permit you to play Fantasy sports”, “Fantasy games are locked” and “cash games are locked”.

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The gaming app lets the users play fantasy cricket and football games and also allows real-money wagering on them.

Despite being the most popular hotspot for some of the world’s biggest tech companies, Karnataka is the latest state that has banned such online games, following the ban by Telangana and Andhra Pradesh.  Although Tamil Nadu had also imposed such bans, its bill was struck down by its high court.

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An industry source had told Reuters earlier that these states were important for the gaming business and account for roughly 20% of the total business for companies.

Roland Landers, the chief executive of the All India Gaming Federation, said in a statement to Reuters that “the industry will challenge this in court and seek legal recourse”.

Two other industry sources told Reuters on Wednesday that “gamers and some companies were planning to file court challenges against the new Karnataka law”.

The law happens to impose heavy and strict fines and serious prison terms on violators.