Dream11 suspends all operations in Karnataka days after FIR against founders

Online fantasy gaming platform Dream11 has decided to suspend operations in Karnataka on Sunday after FIR was lodged against the company following the implementation of ban on online gambling in the state. According to reports, Bengaluru Police on Saturday filed the first complaint against Dream11 founders- Harsh Jain and Bhavit Seth- based on a complaint by a cab driver Manjunath for allegedly violating the new rules of the Karnataka gaming ban.

Retaliating to the said complaint, Dream11 released a public statement stating that the "recent media coverage" has erupted "deep concerns" among their customers about 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 company said in its statement. 

"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 in 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'able Courts of India as not amounting to gambling, betting or wagering," the statement added.

The complaint

A resident of Bengaluru, Manjunath was prompted to file a complaint after he learned about "many" players who lost money in "expectation of winning." In his statement, he also stressed that it is "surprisingly" opaque as to who "grabs the money" when the player loses. "Players do not have control over the activities. So, it is a clear case of running online games of wagering and skill risking the money of the players," Manjunatha alleged in his statement.

Chance vs Skills

On September 22, the Karnataka Assembly sanctioned amendments in the 1963 Police Act that sought to ban online games which involve gambling (game of chance). The bill was introduced following increased reports is cyber fraud in the state. However, the bill has now erupted debate since it threatens the thriving gaming start-up sector in India as, according to the Confederation of All India Traders (CAIT) Chief, has failed to distinguish between a game of chance and a game of skill.

Image: PIXABAY (representative)