Dream11 suspends operations in Karnataka following state-wide ban

Online fantasy sports platform Dream11 has suspended its operations in Karnataka following a state-imposed ban on such platforms came into force.

The police on Saturday registered a case against the founders of Dream11, Harsh Jain and Bhavit Sheth, under relevant sections of the Karnataka Police Act, 1963. The FIR against Dream11 was filed following a complaint made by a cab driver in Bengaluru. Dream11, however, contended that the complaint was “motivated” and that it is exploring legal recourse.

The company was charged with violating the new rules notified by the Karnataka Government last week banning “games of chances”.

In a statement, Dream11 said, “The Karnataka Police Act recently amended its gaming law to prohibit online gambling, betting and wagering. We have been advised by the Federation of Indian Fantasy Sports (FIFS), who have shared an opinion from a former Supreme Court Judge, stating that the Karnataka Police (Amendment) Act 2021 does not apply to its member Fantasy Sports Operators. This is because the FIFS format of Fantasy Sports has been upheld by the hon’ble Courts of India as not amounting to gambling, betting or wagering. However, following the recent media coverage, our Karnataka users have expressed deep concerns and anxiety on their safety and security. In order to allay our users’ concerns, we have decided to suspend operations in Karnataka. This decision is without prejudice to our rights and contentions under law.”

The Karnataka Government enacted a law aimed at strengthening the Karnataka Police Act to “curb menace of gaming through the Internet, mobile apps”.

The new law effectively bans online games, which are “games of chance” in nature. It makes the operation and abetment of online games that involve betting, wagering, and exchange of money a “cognizable and non-bailable offence.”

Earlier, Paytm First Games, Games24X7, and Mobile Premier League (MPL), among others, deactivated their platforms in Karnataka.