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Dream 11 online fantasy gaming does not constitute as an act of gambling/ betting :Rajasthan HC

Case: Ravindra Singh Chaudhary

Forum: Rajasthan High Court

Facts

The Petitioner filed a PIL alleging that Respondent No. 5  provides a platform to its users for playing sports and games on a virtual platform called Dream 11 Fantasy Private Limited. It was alleged that online fantasy sports games are games of chance, thereby constituting illegal act of gambling/ betting and that Respondent Nos.1 to 4 are not prohibiting this illegal act. Further it was also alleged that the Respondent No. 5 was carrying out the act of evasion of GST. 

Key points

The Hon’be HC held that he result of a fantasy game depends on skill of participant and not sheer chance, and winning or losing of virtual team created by the participant is also independent of outcome of the game or event in the real world. The format of online fantasy game offered by Respondent No.5 is a game of mere skill and their business has protection under Article 19(1)(g) of the Constitution of India. The second issue as to whether Dream-11 is wrongly classifying its virtual online games under wrong entry for GST and is also violating Rule 31A (3) of CGST Rules, 2018 to evade GST will be decided by the GST authorities. The PIL was accordingly dismissed .  

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