Monday, 18 October 2021

Dream11 suspends operation in Karnataka

Dream11 suspends operation in Karnataka

Dream11 Fantasy sports major has stopped allowing users in Karnataka from entering paid contests on its platform to comply with a state's online gambling law that came into effect on 5 October.

The gaming firm, which counts Tiger Global, Falcon Edge, and TCV among its investors, shows an error message stating that users who currently live in or have a bank account within the state cannot participate in cash contests Dream11. They can continue to participate in free-to-play games.

The company has also updated its T&C, stating that individuals residing in Karnataka are prohibiting from participating in paid contests "as the laws of the states are unclear and bar persons from join in games of skill where participants are required to pay to enter the fantasy league."

A company spokesperson told.

"The Karnataka Police Act recently modify its gaming law to prohibit wagering, betting, and online gambling. We have been advised by (FIFS) the Federation of Indian Fantasy Sports, who have shared an opinion from a former SC Judge, stating that the Karnataka Police Amendment Act 2021 does not apply to the member Fantasy Sports Operators. This is because of FIFS format of Fantasy Sports has been upheld by Hon'ble Courts of India as not amounting to wagering, betting or gambling."

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The spokesperson also added,

"our Karnataka customer have expressed deep concerns and anxiety about their security and safety. In order to reduce our users' concerns, we have decided to suspend operation in Karnataka state. This decision is without loss to our rights and dispute under laws."

On its website, Dream11, a note said users could withdraw their winnings by verifying their account and placing a withdrawal request by 23 October 2021. The gaming firm also said it is trying its best to "work with the suitable authorities and resolve the case."

the company said in the note.

"We want to make sure that your account balance is always safe on Dream11 and Please note that any cash bonus given in your account will not be allowed for withdrawal,"

This move comes on the heels of Dream11 cofounders Harsh Jain and Bhavit Sheth facing an FIR over the continued working of its platform, the first such police case booked under the new law.

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