You are here: Home » Companies » News
Business Standard

It is a game of skill: Rajasthan High Court rejects plea to ban Dream11

Court says games offered on platform involve skill, not chance; rules that issue of GST evasion, as alleged in the plea, will be decided by GST authorities

Topics
Dream11 | Rajasthan High Court | GST

Indivjal Dhasmana  |  New Delhi 

India's gaming industry heats up as investors court fantasy sports firms
Representative image | Dream11 is an Indian fantasy sports platform that allows users to play fantasy cricket, hockey, football, kabaddi and basketball

The has dismissed a petition seeking a ban on claiming the fantasy sports platform amounted to betting or gambling. The court said “the format of online fantasy game is a game of mere skill”.

The petition also accused of evading the (GST) since it is paid on the 20 per cent sum retained by the company and not on the entire amount. The court said this issue will be decided by the authorities.

The platform allows users to play fantasy cricket, hockey, football, kabaddi, and basketball.

Abhishek Jain, partner at EY, said the petitioner alleged the virtual gaming is nothing else but "betting" on the cricket team. It further alleged that online fantasy sports are games of chance, thereby constituting an illegal act of gambling, betting, and the department of revenue is not prohibiting this illegal game.

Dismissing the plea, the court said: "The result of fantasy game depends on skill of participant and not sheer chance, and winning or losing of the virtual team created by the participant is also independent of the outcome of the game or event in the real world; we hold that the format of online fantasy game is a game of mere skill and it has protection under Article 19 (1) (g) of the Constitution."

This article guarantees freedom to practise any profession, or to carry on any occupation, trade or business.

Dream11 allows users to form their own team. At the time of registration, the user has to make a payment of Rs 100, of which 20 per cent is retained by Dream11 company and the rest 80 per cent is pooled up for the transfer of the amount to the winner of the fantasy tournaments.

The petitioner alleged that the is paid on only 20 per cent and not the entire amount. The court left this issue to be decided by the authorities in accordance with the law. Jain said: "The position of the strengthens the position adopted by industry players in the world of fantasy sports games."

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Tue, October 20 2020. 18:06 IST
RECOMMENDED FOR YOU
.