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Dream11 Banned States in India Why it is Banned

Azam TanzeemSep 14 . 5 min read

WHAT IS DREAM11?

Users may play fantasy cricket, hockey, football, kabaddi, and basketball on Dream11, Indian fantasy sports platform Dream11 became the first Indian gaming firm to become a unicorn in April 2019.

For cricket enthusiasts in India, they introduced freemium fantasy sports in 2012. The firm has 1 million registered users in 2014, which increased to two million in 2016, and 45 million in 2018. Steadview Capital secured a secondary investment in Dream11 in April 2019. Kalaari Capital, Think Investments, Multiples Equity, and Tencent were among Dream11's investors, in addition to Steadview.


IS DREAM11 LEGAL?

A question that a lot of people tend to ask is, “is dream11 legal in India?” as there are 6 Dream11 banned states in India, further putting the answer to this question in doubt.

Dream11 takes great effort to guarantee that all central and state laws in India are followed to safeguard their users. Every contest on their site is meticulously crafted to adhere to Indian laws and regulations.

In its verdict, the Court said that playing the Dream11 game requires a high level of ability, judgment, and discretion, and that success on Dream11 is based on players' exercise, superior knowledge, judgment, and attentiveness.



  • The Court also found that the "factor of skill" had a substantial influence on the Dream11 outcome of this game, which is played in the following sequence:
  • Participants must form a team with at least the same number of players as a real-life sports team (5 for basketball, 7 for kabaddi, and 11 for cricket/football).
  • All competitions are held for at least one complete sports match.
  • After the commencement of the sporting event, players are not permitted to alter their teams.

On this reasoning, the Court found that Dream11 is a game of pure skill, exempting it from the Public Gambling Act of 1867's limitations (PGA).

Finally, the Court determined that Dream11 is a legal economic activity protected by Article 19(1)(g) of the Indian Constitution.

Dream11 is a FIFS founding member (Federation of Indian Fantasy Sports)

TDS of 30% is levied on wins over Rs 10,000 under section 194-B of the Income Tax Act, 1961.

Dream11 pays GST at the rate of 18 percent on all supplies company makes (considering them as other online services)


DIFFERENCE BETWEEN BETTING AND DREAM11

Betting entails putting money down and receiving a return only dependent on the outcome of an event, which takes no skill. On the other hand, Dream11 (a fantasy game) is a skill-based game that requires the gamer to pick a certain squad of players.

* Choosing a player for a team will need study and judgment based on his previous performance, pitch and weather circumstances, and capacity to perform against an opponent team, among other factors.

* The number of players in a team will be the same as in a real-life sports team (e.g., 11 for Cricket/ Football, 7 for Kabaddi, etc.).

* There is a maximum and a minimum number of players from a team, which separates it from betting (for example, in a cricket match, a participant can have a maximum of 7 players from a certain team and a team must have at least one wicketkeeper, etc.).

* All contests last at least one complete sports match (unlike betting, which may be done for a ball, over, player, or anything else).

* After the start of the match and the deadline for updating/participating in a contest, which is generally before the start of the match, players are not permitted to alter their teams.

* There is no difference in credits granted to any participant for incorporating a player in a team (not differed to the advantage/detriment of any participant) (100 credits per team to be created)

* Real-time competition among contest participants may be tracked, and any player can view/download details of all teams in a contest, ensuring complete transparency.

This means that the dream11 banned states are simply put under a restriction that isn’t guarded by the Supreme law. Yet, let us take a look at the perspective of the dream11 banned states and why it is banned.


IS DREAM11 BANNED IN TAMIL NADU AND OTHER STATES?

Dream11 banned states include Tamil Nadu, Andhra Pradesh, and a few others. Why are there dream11 banned states, though? Here’s why:

The Tamil Nadu administration, like several other state governments, failed to see the distinction between a game of skill and a game of chance. Dream11, as a Fantasy Sports app, is a skill-based game that even the Supreme Court endorses. 

However, Dream11 falls under the Real Money gambling category, which includes games like Rummy and Poker, and these games have led to many individuals in Tamil Nadu being hooked to them. Because the state government wanted to take action, they chose to make all Real Money Activities illegal, which include Dream11 as well as other fantasy sports, even though they are skill-based games. So, is Dream11 banned in Tamilnadu? Yes.

Dream11 Telengana is another topic that has recently blown up. So, is dream11 Telangana banned? The rules in Assam, Odisha, Telangana, Nagaland, and Sikkim are ambiguous on whether skill games can be performed for a fee. As a result, citizens of these states are prohibited from participating in pay-to-play online games. So, dream11 Telangana and other states cannot be said for sure as there aren’t any clear rules, hopefully, we’ll be provided with some information soon to put an end to our doubts.

I hope this article gave you some insight on this topic and we recommend that you play games of this genre with your utmost care and attention to avoid any unwanted consequences. 

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