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Karnataka high court restrains police action against Dream 11 founders
Bhavit Sheth and Harsh Jain were named in a complaint filed by a private individual in Bengaluru’s Annapoorneshwari Nagar police station on October 7 for continuing to operate their app despite the ban on online gambling.
The Karnataka high court on Thursday directed the state government not to take any coercive action against the founders of Dream 11 who were charged with operating the gaming platform despite a new legislation that bans online gambling apps.
Bhavit Sheth and Harsh Jain were named in a complaint filed by a private individual in Bengaluru’s Annapoorneshwari Nagar police station on October 7 for continuing to operate their app despite the ban on online gambling.
Justice Sreenivas Harish Kumar asked the Karnataka government not to take any coercive steps like arresting the duo till November 9 or the next date of hearing in the case.
“Since the matter is sub judice, we are unable to comment,” a spokesperson from Dream 11 told Hindustan Times on Thursday.
The directions come almost three weeks after a private complainant, Manjunath, filed a complaint with the Annapoorneshwari Nagar police station for violating the new law that was notified on October 5 by the state government.
The Basavaraj Bommai-led government had tabled and passed the Bill despite opposition during the monsoon session of the legislature held between September 13 to 24.
Home minister Araga Jnanendra has defended the Bill despite concerns being raised over the financial impact of the same on the state as well as the dent of Bengaluru’s image as the tech and startup capital of the country.
The Karnataka Police (Amendment) Bill, 2021 which among other changes, has banned “any act or risking money, or otherwise on the unknown result of an event including on a game of skill,” which has added to apprehensions as it proposes to include skill in what was earlier only on a game of chance.
Police in Bengaluru and other places continue to crackdown on such companies and service providers especially during the recently concluded Indian Premiere League (IPL).
The police have booked 20 cases against 27 persons during the 2021 IPL season with most of them with the old laws that bans gambling.
There has been at least one case filed for violation of the new legislation, people aware of the developments said.
The online gaming industry, which gained significant traction during the Covid-19 pandemic-induced lockdown, is slated to grow from 360 million gamers to 510 million by 2022, according to a 2021 report by All India Gaming Federation (AIGF) and EY.
The report adds that 85% of these are mobile gamers.
It also estimates that online real money game players are expected to grow from 80 million in 2020 to 150 million by 2023.
Estimates indicate that Karnataka, known for its prowess in technology, accounts for around 15% of the country’s market. According to the Internet and Mobile Association of India (IMAI) there are 92 gaming companies registered in Bengaluru which employ over 4,000 people and have, in the last three years alone, attracted ₹3000 crores in investments.
Forums like AIGF and others have approached the court for securing a stay on the ban itself.
