Fantasy sports platform Dream11 has ceased operations for users in Karnataka after an initial informational report (FIR) was filed against the company’s founders for violating the new law banning wagering and wagering in online games.
Dream11 continued to operate in the state through the first half of Sunday, although its peers, including the Mobile Premier League (MPL), Paytm First Games, and RummyCircle, discontinued their services for users in Karnataka after the state legislature passed a law banning money betting and betting platforms.
“To allay the concerns of our users, we have decided to cease operations in Karnataka,” said a press release from Dream11. The Mumbai-based company further added that it complies with all laws.
According to the company, it has been advised by the Federation of Indian Fantasy Sports (FIFS) that the Karnataka Police (Amendment) Act 2021 does not apply to its member fantasy sports operators. “Fantasy Sports FIFS format has been viewed by the courts of India as not gambling, wagering or wagering,” the statement said.
The app is withdrawn shortly after a FIR has been registered against Dream11 co-founders Harsh Jain and Bhavit Sheth from Annapoorneshwarinagar Police station in West Bengaluru.
Before Karnataka, states like Assam, Odisha, Nagaland, Sikkim, Meghalaya, Andhra Pradesh and Telangana had already banned online gaming apps. While fantasy sports platforms position themselves as a game of skill, the Karnaraka ban does not include games of skill, just their money betting component.
The FIFS used to be [Federation of Indian Fantasy Sports] Members urged the Karnataka government to respect and abide by the judicial and constitutional protections of its business activities. Dream11 is a founding member of FIFS, which MPL also counts as a member.
As a reminder, the Supreme Court upheld a ruling by the Rajasthan Supreme Court in August that Dream11 was a game of skill and not a game of chance.
Dream11 is the highest rated startup among real money gaming platforms. Corresponding Trickypedia‘S exclusive report On Aug. 30, the Tiger Global-backed company is in late-stage talks to end a new round valued at over $ 8 billion.
Dream11 is also one of the top consumer internet unicorns in India with a hefty profit.
Corresponding Trickypediathe company had posted Rs 181 crore profit with operating income of Rs 2,070 crore in FY20. The company has yet to submit its annual financial report for FY21.