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Bhavit Sheth and Harsh Jain, founders of online fantasy sports platform Dream11 have moved the Karnataka high court seeking quashing of first information report filed against them over the new state law banning wagering and betting in online games, according to Economic Times.

According to Moneycontrol, Dream11 has suspended operations for those subscribers who have bank account in the state of Karnataka. On October 10, Dream11 had suspended operations in Karnataka, in order to comply with state’s online gambling law that came into effect recently. The Bengaluru Police filed the FIR against Jain and Sheth on a complaint that the Mumbai-based firm continued to offer gaming services on its platform a week after the state government notified the new rules disallowing what it termed as “games of chance”.

In earlier decision the Supreme Court had had held that Dream11 fantasy sports is not gambling. The Court had cited judgements passed by Punjab & Haryana High Court and Bombay High Court. The Punjab and Haryana High court had noted that the success in Dream 11's fantasy sports basically arises out of users exercise, superior knowledge, judgment and attention. The court observed that the element of skill and predominant influence on the outcome of the Dream11 fantasy than any other incidents are and therefore it is a game of "mere skill" and not falling within the activity of gambling.

Whereas, the Bombay High Court had observed that:

“It can be seen that success in Dream 11's fantasy sports depends upon user's exercise of skill based on superior knowledge, judgment and attention, and the result thereof is not dependent on the winning or losing of a particular team in the real world game on any particular day"

In its present petition, the founders of Dream11 have referred to above cases stating that “the FIFS format of fantasy sports has been upheld by the courts of India as not amounting to gambling, betting or wagering.”

The amendments to the law have been challenged by various online gaming entities and also All India Gaming Federation (AIGF) The Karnataka High Court will take up the AIGF petitions on October 27.