Yes, Dream11 is legal in the majority of India. It is an online fantasy sports site that is classified as an online games of skills instead of one of chance. Indian courts have affirmed its legality Dream11 because it requires a lot of ability, skill and a strategy to build and manage a virtual squad. But, the legality rests on state laws in that gambling and betting are controlled by the states in which they reside.
Legal Framework for Fantasy Sports in India
India’s gambling laws are enforced through the Public Gambling Act of 1867 that prohibits all types of gambling. However, the Act is not applicable to games of chance, which are not included in the definition of gambling.
What Makes Dream11 Legal?
- Skills in contrast to. Probability: Fantasy sports platforms such as Dream11 are regarded as games of chance because the outcome is determined by the player’s ability to assess player performance, strategies along with game situations. Contrary to traditional betting or gambling that rely on luck, Dream11 users actively manage their teams with the knowledge and experience of.
- Court rulings The following are the rulings of several Indian courts which include the Punjab and Haryana High Court, the Rajasthan High Court, and the Bombay High Court, have declared that Dream11 is a game that relies on the skill of a person over chance. In 2021 the Supreme Court of India upheld these rulings, which effectively affirmed Dream11’s legal status as a website in India.
State-Specific Exceptions
Gambling is considered a subject of the state which means that states have the power to regulate or ban gambling and betting gambling. Although Dream11 can be legalized in the majority of states, some states specifically prohibit games of skill that involve money stakes
- States Where Dream11 is Prohibited :
- Odisha gambling and games of skill that involve monetary involvement, is a violation of laws of the state.
- Assam games of skill aren’t exempt in the sense of gambling in the laws of Assam.
- Telangana: Games online that require money as well as skill-based games are not permitted.
- Nagaland as well as Sikkim require specific licenses for gaming on skill-based platforms which Dream11 doesn’t currently have.
- States in which Dream11 is legal: Dream11 operates legally in a majority of other states which include Maharashtra, Karnataka, and Tamil Nadu, where games of skill are legal.
Legal Precedents for Dream11
- Punjab as well as Haryana High Court: In 2017, the court determined that Dream11 requires skill and strategy and is not gambling in the sense of the Public Gambling Act of 1867.
- Rajasthan High Court In 2020 The Rajasthan High Court upheld the legality of Dream11 and recognized it as a game of skills.
- Supreme Court of India The Supreme Court dismissed appeals challenging the legality of Dream11 and affirmed the decisions of lower courts.
These rulings have created solid legal support of Dream11’s operation in India.
What is the reason Dream11 is different from Gambling
Dream11 is different from traditional gambling platforms because of its dependence on ability and a strategy. The players must:
- Examine player stats and past performances.
- Be aware of the conditions for matches, such as the weather and pitch information.
- Find a balanced team within budgetary limits.
These elements are what make Dream11 a game of chance which is not subject to gambling laws.
Risks and Considerations for Users
- State-specific restrictions Users are required to make sure they are not using Dream11 from states that have a ban on it since participation in the program could lead to legal sanctions.
- Dangers of Addiction Although Dream11 may be legal in some states, overuse of the program can cause addiction and financial losses.
- Taxation The winnings of Dream11 can be subjected to the 30 percent tax under the Income Tax Act, as they are deemed “income from other sources.”
Conclusion
Dream11 can be permitted in India however, it is not legal in certain states like Odisha, Assam, and Telangana which have local laws that restrict games of chance that have the use of money. Supported by numerous decisions by courts, the platform is considered to be a game of skill, not one of chance. However, players must adhere to specific laws of their state and be cautious in order to stay away from addiction and financial risk.
