Massive Blow for IPL title sponsors Dream11 as Andhra Pradesh bans the fantasy sports platform

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Dream11, the online gaming app and the title sponsor of the ongoing Indian Premier League (IPL) has been banned in the state of Andhra Pradesh.

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In a big blow to the company, the High Court banned the use of the app in Andhra Pradesh.

Dream11 is an online sports fantasy app where users can earn money by making a team and entering various contests.

The Andhra Pradesh government on September 25 banned all online gaming activity that involves real money gaming.

IPL
The High Court passed a ruling 4 days ago.

A Special Leave Petition (SPL) was filed in the Supreme Court on Thursday challenging a February 2020 Rajasthan High Court order that dismissed a Public Interest Litigation (PIL) that appealed to stop “illegal betting and gambling activities” by fantasy sports operator Dream11.

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The Andhra Pradesh-Telangana belt has a high density of gamblers and people who love to wage monetary bets on card games like rummy, poker and similar activities.

Dream11, the largest fantasy sports operator in India, replaced Chinese mobile company Vivo as the title sponsors of Indian Premier League (IPL) 2020. Dream11, which receives funding from Chinese company Tencent, is a major ally of the Indian Cricket Board (BCCI) and at least six of the eight IPL franchises.

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On September 25, the Andhra Pradesh government passed an ordinance to amend the Andhra Pradesh Gaming Act 1974. It came into force with immediate effect.

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Dream11 has an approximate of 9 crore users.

Calling it the Andhra Pradesh Gaming (Amendment) Ordinance, 2020, the government of YS Jaganmohan Reddy prohibited (i) collection or soliciting of bets; (ii) receipt or distribution of winning or prizes in money or otherwise in respect of any wager or bet; (iii) any act which is intended to aid, induce, solicit or facilitate wagering or betting or such collection, soliciting, receipt or distribution and (iv) any act of risking money or playing stakes or otherwise on the result of a game or an event including on a game of skill.

Dream11 said, “Due to recent changes to the Gaming Act in the State of Andhra Pradesh, users from Andhra Pradesh will not be able to join paid contests on Dream11. The laws in Assam, Odisha, Telangana, Nagaland and Sikkim are unclear on games of skills may be played for a fee. Hence, residents of these states are also not permitted to play pay-to-play formats of any online games.”

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