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Suspension of Dream 11 Operations Latest Disappointment for Fantasy Sports and Online Casino Fans in Karnataka

In October, fantasy sprots operator Dream 11 announced that its operations in Karnataka were suspended. The company took this action in order to comply with the state’s new online gambling law which came into effect on 5 October 2021.
Dream 11 is not the only brand affected by the new law with all online real-money gaming providers and casinos being hit. This is a blow for the growth of new offshore online casinos in India which increased dramatically through 2020 and into 2021, as reported by Legal changes like this are unlikely to stop the growth of online casinos and real cash games but they may have an adverse effect on this growth.

Taking a look at the legal situation in Karnataka provides insight into the challenges that have been created by the new law.

The legal reasons why casinos and fantasy sports operators are excluding Karnataka players
When the Karnataka government announced its new online gambling law, it meant that online gambling became an offence in the state. This offence is punishable by fines up to Rs 1 lakh and a prison sentence of up to three years.

The law applies to all online games that make use of “electronic means and virtual currency, electronic transfer of funds in connection with any game of chance.” As a result, providers of these games have provided messages on their websites and apps to inform people in the state they are no longer allowed to play.