Karnataka HC quashes FIR against Dream11 co-founders Harsh Jain and Bhavit Sheth

Subsequent to the judgement, several companies including Dream11 have started again allowing users in Karnataka to enter into paid contests on their respective platforms.

"Several High Courts are gradually but steadily recognising the distinction between Fantasy Sports and games of chance, gambling, betting and wagering. Such moves will enable more investment in the Fantasy Sports industry, which has already extensively contributed to creating a deeper engagement with sports" said Senior Advocate Gopal Jain in a statement.

The Dream11-Karnataka Police saga so far

The Karnataka Police had initially filed a case against Dream11 and its cofounders on October 9 for continuing operations on its platform after the law had come into effect on October 5.

Dream11 had then 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”.

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.

On October 28, the Karnataka High Court had directed the state government not to take any coercive action against the Dream11 cofounders.