New Delhi: Dream11, one of India’s most popular gaming apps backed by Tiger Global, is facing a police case in the state of Karnataka for alleged violation of a new local law prohibiting online gaming.
The state’s law, which went into effect this week, bans online games involving betting and wagering and “any act or risk of money, or otherwise including games of skill at the unknown outcome of an event.”
Several gaming apps, including the Sequoia Capital-funded mobile Premier League, have stopped serving users in the state, but Dream11 had continued.
Police records on Saturday revealed that in Bengaluru, Karnataka, a case has been registered against the founders of Dream11 following a complaint by a 42-year-old cab driver who reported the gaming app to be operational after the ban came into force. .
Dream11 told Reuters it believes the “complaint is motivated,” but did not elaborate.
The company is investigating its legal remedies and “we are a responsible, law-abiding company and will extend our full cooperation to any authority,” a spokesperson said.
The Dream11 app was still allowing users to play fantasy games in Karnataka, home of India’s Silicon Valley, on Saturday.
The Karnataka ban has intensified concerns that the escalating state regulations could affect the booming but booming gaming sector in India, where foreign investors have poured millions of dollars in recent months.
The Dream11 and MPL platforms, offering paid competition with cash prizes for players, have expanded rapidly in recent months with extensive marketing and rentals. Local media have said that Dream11 is seeking to be listed in the US by early 2022.
The Karnataka law imposes heavy fines and jail sentences on violators and has been implemented amid growing concerns that online gaming platforms such as gambling are addictive and can cause financial harm.