Dream11 Suspends Operations in Karnataka: Here’s Why
Dream11, one of India’s most popular gaming apps, has suspended operations in the southern Indian state of Karnataka after a complaint was registered against its founders claiming it was in violation of a new state gambling law.
Police records on Saturday showed a case has been registered in India’s tech capital Bengaluru, in Karnataka, following a complaint by a 42-year-old cab driver who reported it as being operational after a ban on online games involving betting came into force.
“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,” it said in a statement on Sunday.
Dream11, which provides a fantasy gaming platform for various sports, last year became India’s first gaming startup to be valued at over $1 billion (roughly Rs. 7,535 crores). It has faced legal challenges in the past due to the similarities of fantasy gaming to gambling.
The state law, which came into effect last week, bans online games involving betting and wagering and “any act or risking money, or otherwise on the unknown result of an event including on a game of skill”.
A Dream11 spokesperson said on Saturday that the company is examining its legal remedies, and added that “we are a responsible, law abiding company and will extend our full cooperation to any authorities”.
© Thomson Reuters 2021