Pixel P&L: Karnataka Plans Regulatory Body for Real Money Gaming

Welcome to another Pixel P&L edition. This issue takes 5 minutes to read. If you only have one, here are the 5 most important things:

• Karnataka plans to establish a real money gaming regulatory authority to combat illegal betting — learn the details below.

• EU gaming lobby fights back against "Stop Killing Games" petition, claiming offline support requirements would make development too expensive.

• Apple appeals its €500 million EU fine to Europe's second-highest court over App Store restrictions.

• Samsung settles with Epic Games over antitrust claims involving Google Play store competition — terms undisclosed.

• Arkane Studios founder calls Game Pass "increasingly damaging" to the industry after Microsoft's recent studio cuts. 

Let's get into it.

Karnataka to Create Real Money Gaming Regulatory Authority

Karnataka reportedly plans to establish a four-member regulatory authority to oversee the state's real-money gaming industry and combat illegal online betting, according to a draft bill to amend the Karnataka Police Act, 1963.

The Karnataka Online Gaming and Betting Regulatory Authority will distinguish between games of skill and games of chance based on judicial precedents, issuing licenses to skill-based real money gaming operators while prohibiting all forms of online betting involving games of chance.

The authority will include a chairperson with experience in law, public administration, or technology, plus three members specializing in information technology, finance, and social welfare. Operators of unregistered platforms face up to three years imprisonment and fines up to Rs 1 lakh.

The move follows Tamil Nadu's creation of a similar five-member real money gaming authority earlier this year. The Real Money Gaming (RMG) industry in India is valued at approximately $3.2 billion in 2024.

EU Gaming Lobby Says Law Forcing Online Game Support Would Make Development 'Too Expensive'

A European Union lobbying group representing the video game industry has pushed back against a consumer petition demanding legislation to prevent publishers from shutting down online games, arguing such requirements would make live service titles prohibitively expensive to develop.

Video Games Europe responded to the "Stop Killing Games" petition, which has garnered over 1.2 million signatures calling for laws preventing publishers from making games unplayable when official support ends. The movement cited titles like The Crew, Concord, and MultiVersus as examples of games rendered inaccessible to consumers who purchased them.

The lobby group argued that many games are "designed from the ground up to be online-only," making developer choice curtailed by requirements for offline alternatives. They also cited security concerns with private servers, claiming they would lack protections for player data and content moderation that leave rights holders liable.

⚡Quick Bytes

Apple Appeals €500 Million EU Fine to Second-Highest Court

Apple has appealed a €500 million ($587 million) fine from EU regulators to Europe's second-highest court, challenging the European Commission's ruling that it violated Digital Markets Act rules by restricting app developers from directing users to cheaper deals outside the App Store. Apple called the fine "unprecedented" and argued regulators are "mandating how we run our store." The company revised its App Store rules last month to avoid daily fines up to €50 million.

Samsung Settles Epic Games Antitrust Claims Over App Store Competition

Samsung has settled antitrust claims that it conspired with Google to shield the Google Play app store from competition, "Fortnite" maker Epic Games said Monday. Epic dismissed its claims against Samsung in federal court in San Francisco, also withdrawing some related allegations against Google. The lawsuit focused on Samsung's Auto Blocker security feature, which Epic argued deterred users from downloading apps outside Google Play or Samsung's Galaxy store. Settlement terms weren't disclosed.

Arkane Studios Founder Calls Game Pass 'Increasingly Damaging' to Industry

Raphaël Colantonio, founder and former president of Microsoft-owned Arkane Studios, criticized Game Pass following Microsoft's recent studio cuts, calling the subscription service "an unsustainable model that has been increasingly damaging the industry for a decade." The Dishonored co-director argued the service is "subsidized by MS's 'infinite money'" and warned it would either "kill everyone else, or give up." His comments come amid fresh scrutiny of Microsoft's day-one Game Pass releases after widespread layoffs and studio closures.

⚔️Side Quest

📺 Watch: This candid interview with Wooting CEO Calder Limmen reveals how the gaming keyboard manufacturer disrupted the peripheral market with analog switches and rapid trigger technology. Discover strategic insights into identifying underserved niches in competitive gaming, leveraging community feedback for product development, and scaling from bootstrapped startup to industry leader while maintaining direct-to-consumer focus.

🎮 Play: I’ve been travelling a lot and having a lot of fun playing Katamari Damacy Rolling LIVE on Apple Arcade. It is brilliantly written, the music is infectious, gameplay feels perfectly tuned. I’ve never played a Katamari game before so this has been a delightful introduction to the series.

📚 Read: This powerful piece from a trans gaming writer explores how games can be more than escapism and can inspire real-world action. Using examples from Final Fantasy 14 to tabletop RPG "Mad As Hell," the author argues that the heroic skills gamers develop can translate into vital political organizing and support for marginalized communities under attack.

💡Did You Know

In 2003, Canadian student Mike Rowe registered MikeRoweSoft.com for his web design business, creating a clever pun by adding "soft" to his name. Microsoft wasn't laughing and demanded he surrender the domain for trademark infringement. When they offered to reimburse his $10 registration fee, an irritated Rowe countered with $10,000. Microsoft responded with a 25-page cease and desist letter! The resulting media frenzy painted Microsoft as a corporate bully picking on a teenager. Facing a PR nightmare, Microsoft eventually settled, giving Rowe an Xbox, games, Microsoft certification training, and an all-expenses-paid family trip to their headquarters. Sometimes being cheeky pays off!

📜 Quote of the Day

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