In the latest development of the lawsuit against Dream 11 which was filed recently in Karnataka, the company has suspended its operations in the state as the fantasy gaming platform is currently battling complaints alleging violation of the newly implemented Karnataka gaming ban.
It was on Saturday that the Bengaluru Police filed a first information report (FIR) against Dream11 founders Harsh Jain and Bhavit Sheth. This action came after the complaint that the Mumbai-based firm had continued to offer gaming services on its platform a week after the state government notified new rules which made it prohibited to run services that followed the word “games of chance”.
Dream11 continues to maintain that it is compliant with all the laws. “However, following the recent media coverage, our Karnataka users have expressed deep concerns and anxiety about their safety and security.
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.
Karnataka’s new law, which came into effect on October 5, bans online games that are “games of chance” in nature. And Dream11 is not the first company to stop its operations in Karnataka, previously the likes of Mobile Premier League (MPL), Paytm First Games, Games24X7 and others, have already deactivated their platform for users in Karnataka.
Karnataka is among the top three states in India in terms of the user base of online fantasy games andDream11 is currently valued at nearly $5 billion and is the largest player in the space.
Karnataka’s Home Minister Araga Jnanendra called the first case filed under the new law a “big win” for its government who is trying to fight against online gambling. He stated that online gambling games are ruining the lives of many people, and also that the government was receiving a lot of appreciation from the public for bringing out the new law.
Jnanendra urged members of the public to inform the police if they came across any instances of violation of the law.
