The popular Indian fantasy platform has now suspended its operations in the state of Karnataka days after an FIR was filed against the founders.
Recently, Karnataka has come up with the new Karnataka Police Act, 2021, to ban all forms of gambling in the state. This law was passed to curb the menace of gambling through smartphones and the internet.
Days after this, the Bengaluru Police filed an FIR against Harsh Jain and Bhavit Seth, founders of Dream11. It has been said in the FIR that the fantasy sports platform has failed to comply with the new gambling law of Karnataka.
An FIR was registered following the complaint by a cab driver Manjunath who claimed that Dream11 was operational even after the ban of online gambling in Karnataka. After the series of events, Dream11 has finally decided to suspend its operations in Karnataka.
“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 this Act does not apply to its members). 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,” said the company in its statement.
Karnataka Police Act 2021
Karnataka has amended the Karnataka Police Act, 1963, and banned online gambling or betting within its territory. The state government has declared maximum imprisonment of 3 years and a fine of up to INR 1 Lakh if caught gambling.
This law against gambling has shaken many online casino companies that were offering their products to Karnataka residents. This Act will prohibit online games that involve all forms of wagering or betting. However, netizens are not so happy with the latest draft.
“India is the fifth largest online gambling market in the world and is giving birth to a greater number of unicorns within the country, especially the state of Karnataka. The sector has also been a potential financial contributor to the Indian economy even during the period of slowdown and can be expected to generate revenues in excess of $3 billion by 2025. This step by the Karnataka government in transforming the Karnataka Police Act, 2021 can be seen as a setback to the overall reputation of the state, especially of Bangalore being a startup capital of India”, said Roland Landers, the Chief Executive Officer of All India Gaming Federation.
