The development came a day after the Bengaluru Police
filed a first information report (FIR) against founders Harsh Jain and Bhavit Sheth after a complaint that the Mumbai-based firm was in violation of the Karnataka gaming ban that came into effect on October 5.
Dream11 continues to maintain it is compliant with all the laws.
“However, following the recent media coverage, our Karnataka users have expressed deep concern and anxiety on their safety and security. In order to allay our users’ concerns, we have decided to suspend operations in Karnataka,” the company statement read. “This decision is without prejudice to our rights and contentions under law.”
The FIR was filed based on a complaint registered by Annapoorneshwari Nagar Police in West Bengaluru, which named the founders of the fantasy sports platform as accused.
Dream11 reiterated that it has been advised by the Federation of Indian Fantasy Sports (FIFS), which has shared an opinion from a former Supreme Court judge, stating that the Karnataka Police (Amendment) Act, 2021, does not apply to its member fantasy sports operators.
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“This is because the FIFS format of Fantasy Sports has been upheld by the hon’ble Courts of India as not amounting to gambling, betting or wagering,” the company said.