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Summary
- Gaming and fantasy operators set to resume operations
- Karnataka High Court rules iGaming ban as unconstitutional
- State governments will think twice now before pushing for iGaming ban
In a move that gave some succour to iGaming and fantasy sports firms in Karnataka, the state’s High Court (HC) deemed the Karnataka Police (Amendment) Act unconstitutional on 14 February. Gaming operators like the Dream11 and Ace2Three and Games24x7 (RummyCircle, My11Circle) who had previously suspended their operations in October 2021, are set to make a comeback due to the recent judgement.
After the Karnataka Police (Amendment) Act had prohibited all forms of online gaming that involved online money transfers, numerous iGaming firms and providers like Mobile Premier League (MPL) along with individuals and industry associations such as Federation of Indian Fantasy Sports (FIFS), All India Gaming Federation (AIGF) had petitioned against it. A single-judge bench headed by Justice Krishna S Dixit had initially heard the case.
Later, the case was transferred to a division bench that comprised Chief Justice Ritu Raj Awasthi and Justice Dixit. The court had reserved its judgement after it heard the petitioners on December 22 last year. The bench had communicated to the contending parties to file their respective submissions in writing for any further arguments. Initially, the petition, which was listed for interim relief, underwent a hearing for final arguments. A consensus between the state’s Advocate General and the counsel appearing for the petitioners followed suit.
The amendment came into effect after a public interest litigation filed in the HC sought a ban on online gambling. The act dismantled the difference between games of skill and games of chance due to which skill-gaming operations came under its ambit. This came despite the fact that the Supreme Court of India had upheld fantasy sports as skill-based games in July 2021.
Over the last year, governments in states like Telangana, Tamil Nadu, Kerala and Andhra Pradesh had also tried to ban real money games. However, the order in Kerala was overturned by its High Court recently. The Madras High Court struck down the order in Tamil Nadu (TN). The latter’s state government has approached the Supreme Court to overturn the HC judgement.
Dream11 Duo Await Judgement in ‘Mala-fide’ Allegations Case
With the passage of the amendment act, it was reported that gaming platforms like MPL, Ace2Three and RummyCulture and Games24x7 had blocked access for Karnataka residents in early October last year. Dream11, a fantasy sports firm, had done the same after a case was filed over its operations against co-founders Bhavit Sheth and Harsh Jain. The duo petitioned the HC against the allegations, refuting them as baseless.
The court directed Karnataka’s government to stall all coercive action against Sheth and Jain, but it did not order stopping the investigation in the matter. The case is awaiting judgement until the next date of hearing.
