Less than a week ago the Karnataka government passed a controversial bill outlawing online gambling and 'luck games', after which Dream11 has suspended its services in the state of Karnataka, on Monday, October 11, 2021, as reported.
It came after Bangalore Police filed an FIR against the Dream11 Founders, Harsh Jain and Bhavit Sheth. The complaint was based on Dream11, having Falcon Edge and Tiger Global as their prime investors, allegedly violated the Gaming ban by Karnataka which started on Oct 5th.
The company is saying, the users who have bank accounts are a resident of the state, can not participate in the monetary contests on the app. However, they can participate in the free games.
Dream11 Press Release:
Complaint Against Dream11 Founders
On 7th October, Thursday, a cab driver named Manjunath, resident of Nagarbhavi, Bengaluru, issued a complaint against the owners of Dream11 Sports.
Manjunath was aware of the amended Karnataka Gaming Laws and went on to Google Play Store to see if the Indian Fantasy Gaming Platforms have withdrawn their services. He found out that except Dream11 application, all the others had withdrawn their services.
After a while, Dream11 said in a statement that,” We think our complaint is motivated to examine our legal remedies. We extent our full cooperation and support to the authorities.”
What is the New Karnataka Police Act?
21st September 2021, the Karnataka Government outlawed all the practices of Fantasy Sports to fight online gambling. The act came into effect soon as demanded by the Legislative Assembly
This Bill has come at a time when fantasy gaming and startups are on the high of making money through the ICC T20 World Cup and the ongoing IPL.