Fantasy sports platform Dream11 has suspended its operations in Karnataka days after an FIR was filed against its founders in Bengaluru. The complaint was filed after the company ‘failed to comply’ with the Karnataka government’s new law banning online gambling and betting.
“Many Karnataka users have expressed deep concerns and anxiety and to allay the same, we have decided to suspend operations in Karnataka,” read a message that the company mailed its users on October 10, Sunday.
According to the mail, starting from 1 pm (IST) on October 10, Karnataka residents will not be allowed to participate in pay-to-play contests on the app. The users can continue to play free-to-play contests only.
Dream11 in the statement said that the Karnataka Police (Amendment) Act which prohibits gambling, betting and wagering does not apply to its member Fantasy Sports Operators.
“We have been advised by the Federation of Indian Fantasy Sports (FIFS) who have shared an opinion from a former Supreme Court judge [that the new Act does not apply to us]. This is because the FIFS format of Fantasy Sports has been upheld by the Hon’ble Courts of India as not amounting to gambling, betting or wagering,” the statement reads.
Karnataka residents, who have winnings that they would like to withdraw, can verify their account and place a withdrawal request by October 23, 2021.
The company also said that they are trying their best “to work with the relevant authorities and resolve this situation”.
Several websites including Ace2three, rummycircle, jungleerummy that offered cash games have been banned for residents of Karnataka since October 5 when The Karnataka Police (Amendment), Act 2021 received the Governor’s assent and was notified by the State government.
According to the new law, gambling is now a cognizable and non-bailable offence in the State.
The Act bans all forms of wagering or betting in connection with any game of chance except horse racing and lottery. The amendment also prohibits risking money on the unknown result of an event including on a game of skill.
The Bengaluru police had registered an FIR against the Founder and Directors of ‘Dream 11’ as of October 7. Bhavit Sheth and Harsh Jain, the founders and directors of Sporta Technologies Private Limited, which promotes the ‘Dream 11’ gaming app, have been booked as accused number one and two.
The action came based on a complaint by 42-year-old Manjunath, a cab driver and resident of Bengaluru on Thursday, who according to the complaint saw the app operational even after the ban.
Read all the Latest News , Breaking News and IPL 2022 Live Updates here.
Comments
0 comment