The Bengaluru Police will not take any action against the skill-based gaming platform Dream11 until the court gives orders.
According to the state law in Karnataka, “gaming includes all forms of online games which involves wagering or betting in the form of token or electronic means and virtual currency.” The Karnataka government has put a ban on the electronic transfer of funds related to any game of chance. However, the law has excluded lottery and betting on horse races. Due to the recent ban on gambling by the Karnataka government, many online gaming companies have stopped offering their products to the people in Karnataka.
Recently, the Karnataka government has given a relief or extension in the case of Dream11 operations in Karnataka. The High Court has ordered the Bengaluru police not to take any coercive action against the fantasy sports platform Dream11 until the court gives the orders.
Dream11 Suspended its Operations in Karnataka
After the state amended the Karnataka Police Act 1963 and introduced a new online gambling law, gaming companies like Dream11 suspended their operations in the state. Other gaming companies that have stopped operating in Karnataka are Mobile Premier League, Junglee Games, Ace2Three, and RummyCircle. These companies have stopped offering their skill-based gaming products to the players in Karnataka.
Dream11 came in the news when a state resident had filed a complaint against the company that the gaming platform was violating the new gambling law by the government. According to the Karnataka Police Act 2021, “online games like poker, online chess, fantasy sports or bridge that involve real money gaming components are under the risk of getting banned in the state.”
Many other gaming startups and companies are at the risk of getting banned. Gaming companies violating the law might face up to three years in jail and a penalty of up to INR 1 lakh.
Supreme Court Considers Online Gaming a Constitutional Right
Karnataka is pushing for a statewide ban on online gambling instead of regulating it. This could lead to the shut down of many gaming operations in the state. The supreme court considers online gaming a constitutional right. This is why many people believe that the online gaming sector should be regulated rather than banning it.
The state can take the example of different regulated gaming markets around the world that are generating a huge amount of revenue through the gaming sector. The online gambling market in India has thrived even during the pandemic. Indian states can generate a decent amount of revenue if they regulate the online gambling market within their jurisdiction.
