Rajasthan HC Dismisses PIL Alleging Dream11 Games Come Under Betting/Gambling

The Rajasthan High Court dismissed a PIL against Dream11 Fantasy Private Ltd. The PIL
challenged Dream 11 on two grounds. The first being that the game played on the platform
amounts to betting and secondly, Dream 11 is paying 18% GST instead of applicable 28%
GST and is doing tax evasion. The court observed that since the game is based on skills of the
participants and not mere chance, it does not amount to betting and the business is protected
under Article 19(1)(g) of the Constitution of India. Referring to second contention, the court
referred the matter to be examined by the GST authority and finally held that the business is
correctly paying 18% GST by classifying its services under entry 998439. The court further
imposed cost on the petitioner as no real public interest exists in the petition.

Madras High Court Refuses to Grant Stay on Order Banning Online Betting Games

The Madras High Court refused to grant an interim stay on the order passed by Tamil Nadu
Government banning online betting games. Junglee, an online gaming platform, contended
that rummy is a game of skills and is legally played in clubs across country. Therefore, online
rummy cannot be banned. The state, on the other hand contended, that the game involves
money and thus, amounts to gambling.

NITI Aayog Issues Guiding Principles for National-Level Regulation of Fantasy Sports

Government of India’s think tank NITI Aayog has published a draft for discussion of
guidelines for the Fantasy Sports industry. The industry offers jobs, brings FDI and boosts
GDP. But there lies legal ambiguity and the regulated operation of the industry will lead to
tarnishing the image of the industry and exploitation of consumers. The treatment of the
industry differs in different states. Hence, the central guidelines aim at uniform regulation
and to provide for dispute redressal mechanism.

Maharashtra Considering Legalising Online Gambling, Cites Financial Benefits

In order to deal with financial crisis, the Maharashtra Government is considering to legalise
online betting and gaming as the tax imposed on such activities can lead to a mobilisation of
at least Rs. 2,500 Crore from the operators.