The Karnataka High Court has quashed a first information report filed last year in Bengaluru against Harsh Jain and Bhavit Sheth, the co-founders of fantasy sports platform Dream111. The court acted on the grounds that, in view of a division bench order striking down several provisions of the Karnataka Police (Amendment) Act, 2021, nothing remains in the FIR1.
The state government had notified the law banning betting and wagering in online games in October last year, after Governor Thawar Chand Gehlot gave his assent1. In February, the Karnataka High Court struck down the state government law that banned online gaming1. The Business Standard report said the FIR registered by Karnataka Police against the Dream11 founders was quashed in court that day1.
"The FIR registered by Karnataka Police against Dream11 founders was quashed in today"
The report also noted that the Tamil Nadu government had, earlier last year, passed a law to ban online games such as rummy, poker and other skill-based games that involve betting and money prizes, but it was revoked in August 20211. Other states that have clamped down on the industry include Telangana, Andhra Pradesh, Kerala, Assam and Odisha1.
Dream Sports, the parent firm of Dream11, raised an investment of $840 million at a valuation of $8 billion in November, led by Falcon Edge, DST Global, D1 Capital, Redbird Capital and Tiger Global1. It raised $350 million at a valuation of $2.3 billion in September 20211.
Salman Waris, a partner at Delhi-based law firm TechLegis, said the development was a positive step and a temporary relief, but that if the Karnataka government were to challenge the decision bench order before the High Court or make a specific legislation on fantasy gaming, the nascent industry could face a major challenge1. Senior Advocate Gopal Jain said several High Courts are gradually but steadily recognizing the distinction between fantasy sports and games of chance, gambling, betting and wagering1.
What it means for players
The quashing of the FIR removes the immediate criminal complaint against the two Dream11 co-founders in Karnataka1. It follows the February High Court order striking down provisions of the Karnataka Police (Amendment) Act, 2021, which had banned real money based online gaming in the state1. For people who play paid fantasy sports in Karnataka, the legal basis for the state's ban has been struck down by the court, though the report describes the relief as temporary1.
The report does not state whether the Karnataka government will appeal the division bench order or introduce new legislation specific to fantasy gaming1. It also does not say what the quashing of the FIR means for other operators or players who faced action under the struck-down provisions1.
What happens next
The report does not give a date for any further hearing or for a possible state appeal1. It notes only that the Karnataka government could challenge the decision bench order before the High Court or bring a specific law on fantasy gaming1. For background on how India treats paid real money gaming, see Can I Gamble in India? and Fantasy Sports in India After the Ban; for the wider regional picture, see Gambling Laws in Asia: What Is Legal in 12 Jurisdictions.
