Under the Karnataka Police Amendment Act 2021, the Karnataka government has begun to crack down on online gaming.
Annapoorneshwarinagar police in Bengaluru have registered an FIR against the Founder and Directors of ‘Dream 11’ online game app, police sources said on Friday.
Harsh Jain and Bhavit Sheth, founders and directors of Sporta Technologies Private Limited, which promotes the “Dream 11” gaming app, were arrested as the first and second accused. Based on a complaint filed by Manjunath (a Bengaluru resident) on Thursday, the police initiated an investigation.
According to the complainant, the Karnataka government amended the 1963 Karnataka Police Act prohibiting online games of chance or skill that could result in the loss of money. To find out how many online games have been withdrawn, he searched Google Play Store. Other than ‘Dream 11″, many companies have blocked mobile apps from their company’s.
They have been promoting their online gaming app, Dream 11, and continue to bet online on games. According to the complaint, they are still placing and risking money by creating their fantasy cricket team. This is a way for them to make illegally.
The Bharatiya Janata Party’s (BJP) government has notified the Karnataka Police Amendment Act, 2021, which prohibits all forms of online gambling that involve wagering, betting, or gambling of any nature or form in the state.
The new law makes online gaming a non-bailable offense and carries a maximum of three years imprisonment. The Karnataka government has also banned games of skill. It categorizes online gaming using electronic means, virtual currency, and electronic transfer of funds as gambling.
The Governor has approved the new legislation that was passed by both Houses of Karnataka Assembly in Monsoon. Mobile Premier League (MPL), which was followed by Paytm First Games, was the first company to stop operations in Karnataka.
Online gaming companies plan to challenge the new legislation. This is similar to Tamil Nadu, where online gaming operators were granted relief from the High Court’s order against the state government.
According to the Internet and Mobile Association of India, (IAMAI), the new legislation will have a negative impact on the image of India as a hub for start-ups and will result in a significant revenue loss for the state exchequer.
According to the state, offshore gambling will thrive under the new legislation. Sources claim that there are more than 100 gaming companies in the state with over 4,000 employees.
KPMG Consulting estimates that the IPL Fantasy League is worth $1 billion. The peak fantasy cricket season in 2021 will be the two-month period from September 19th to November 14th, 2021. This is due to the T20 World Cup. Karnataka is one of the top fantasy sports markets in India and will be affected by the ban.