The Karnataka High Court on November 9 extended an interim order in the case pertaining to Dream11 founders Bhavit Sheth and Harsh Jain seeking to quash an FIR filed by Karnataka Police till the next hearing date.
The development came after the government pleader submitted in the court that the state wanted to file a statement of objections and the Advocate General will address the court in the argument. The case is now expected to be listed for hearing after two weeks.
On October 28, the Karnataka High Court had directed the state government not to take any coercive action against the Dream11 duo over the state’s online gambling law that came into effect on October 5. However, it had noted this order does not stall the investigation.
Judge Sreenivas Harish Kumar reiterated this in today's hearing, saying that he is of the opinion that the investigation should go on in this matter.
While the Dream11 advocate argued that the Supreme Court had addressed this issue and the amendments to the Karnataka Police Act do not apply to the company, the judge noted that they will apply the Supreme Court judgment if it is applicable after hearing the arguments.
The Dream11-Karnataka Police saga so far
On October 9, the Karnataka Police had filed a case against Dream11 and its cofounders for continuing operations on its platform after the law came into effect on October 5. This was the first such case under the new law that had outlawed all forms of online gaming where transfer of money was involved.
Dream11 said the law did not apply to members of the Federation of Indian Fantasy Sports (FIFS), a self-regulatory industry body for fantasy sports, since the format “has been upheld by the courts of India as not amounting to gambling, betting or wagering”.
However, it suspended operations in Karnataka on October 10, stating that this move was made to allay “deep concerns and anxiety” from its users in the state and “is without prejudice to our rights and contentions under the law”.
Moneycontrol had reported on October 24 that Dream11 had stopped allowing only those users in Karnataka who have a bank account within the state, from entering paid contests on the platform. Meanwhile, other platforms such as Mobile Premier League, Junglee Games, Adda52 and Games24x7-owned My11Circle have placed geoblocking restrictions on users within the state.
Dream11 co-founders later moved to the Karnataka High Court, alleging in their petition that the case was registered on the basis of “bald and vague allegations” made by the complainant, at the behest of its business competitors with a “mala fide intention of brushing the colour of gambling, betting and wagering to the activities of fantasy sports” carried out on the Dream11 platform.
The Karnataka High Court is also hearing the petitions filed by skill gaming industry body All India Gaming Federation and real-money gaming firms such as Mobile Premier League (MPL), Games24x7, A23(Ace2Three), Junglee Games, Gameskraft and Pacific Games. These petitions challenge the constitutional validity of amendments made to the Karnataka Police (Amendment) Act.
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