The conduct of Kambala is a violation of Section 3 of the Prevention of Cruelty to Animals Act 1960, a circular said.
The ban was imposed by the department of animal husbandry and veterinary sciences based on a Supreme Court order dated May 7, 2014 and direction of the Animal Welfare Board of India (AWBI).
Last week, the Udupi administration had also banned the sport.
Deputy Director of the Veterinary and Animal Husbandry department Thippeswamy said legal action under the Act would be taken against officials and the Kambala organisers if the Supreme Court order is not followed.
Kambala was a coastal tradition and it should be allowed since there is no cruelty involved in its conduct, Minister for Forest, Environment and Ecology, B Ramanath Rai said in a statement.