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FIR against fantasy platform Sportasy under new Haryana gambling law; pressure mounts on Dream11, My11Circle, others

EntrackrEntrackr · 6m ago
FIR against fantasy platform Sportasy under new Haryana gambling law; pressure mounts on Dream11, My11Circle, others
Medial

Under Haryana’s new gambling law, the state has registered its first FIR against fantasy sports platform Sportasy, owned by Blossomfield Gamingzone Pvt Ltd. The complaint, filed by Hari Nuniya, a resident of Naharpur, signals the beginning of Haryana’s action against fantasy gaming operators. The move follows Haryana's notification of the Prevention of Public Gambling Act, 2025, in May. The revised law includes fantasy sports and opinion trading platforms within its scope, unless they are specifically recognised as "games of skill" by the state government under Sections 2(g) and 16 of the Act. Despite previous court rulings that classify fantasy sports as skill-based, Haryana’s law requires explicit approval at the state level. Without this, even long-time operators may face legal consequences. Platforms like MPL have already suspended their fantasy and opinion-trading services in Haryana, anticipating such risks. But others including Dream11, My11Circle, SportsBaazi, and MyTeam11 continue to operate in the state. With the FIR against Sportasy now public, pressure is mounting on fantasy games, rummy, and opinion trading apps, including Dream11, My11Circle, MyTeam11, and Sportsbaazi, among many others. Legal experts say they could be vulnerable to similar action, including FIRs, criminal proceedings, asset freezes, and operational disruptions, if they fail to secure state recognition. After the new law came into effect, authorities took action in the opinion trading space. In May, Gurugram Police froze over Rs 100 crore linked to the Probo app. Probo then approached the Punjab and Haryana High Court, which refused to release the funds. The company subsequently moved to the Supreme Court on June 2, but the Court directed it to return to the High Court for a full hearing. The High Court heard the matter today and instructed the investigating officers to present all relevant details at the next hearing on June 12 (tomorrow). This FIR against Sportasy is the first known case under the new law targeting a fantasy sports platform. Last month, Entrackr reported on how apps like Dream11, My11Circle, and others are still running in Haryana after the new law came into effect. The report explained how the law’s broad definition of “betting” includes fantasy sports, opinion trading, and other real-money gaming platforms.

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NCLAT Overturns NCLT’s Order Against Dream11 Parent

Inc42Inc42 · 1y ago
NCLAT Overturns NCLT’s Order Against Dream11 Parent
Medial

The National Company Law Appellate Tribunal (NCLAT) has dismissed insolvency proceedings against Sporta Technologies, the parent company of fantasy sports platform Dream11, for an alleged rent default of over INR 7.6 Cr. The Appellate Tribunal noted that the National Company Law Tribunal (NCLT) wrongly admitted the insolvency plea, overlooking the exemption period under the Insolvency and Bankruptcy Code. The NCLAT's decision comes after Reward Solutions filed the insolvency plea in February 2024, claiming that Sporta Technologies failed to comply with a lease agreement. Dream11 recently faced challenges due to the 28% GST imposed on the online gaming sector and a substantial GST notice from the tax authorities. However, the company saw growth in its user base, net profit, and operating revenue in the financial year 2022-2023.

ED raids Dream11 office and co-founder Bhavit Sheth’s premises in money laundering case

EntrackrEntrackr · 11d ago
ED raids Dream11 office and co-founder Bhavit Sheth’s premises in money laundering case
Medial

url: https://entrackr.com/news/ed-raids-dream11-office-and-co-founder-bhavit-sheths-premises-in-money-laundering-case-10925069. Content: The Enforcement Directorate on Friday reportedly conducted search operations at more than 30 locations across India as part of a money laundering probe that has brought online fantasy gaming platform Dream11 and its co-founder Bhavit Sheth under regulatory scrutiny. Among the locations searched were Dream11’s office and premises linked to Sheth, as per several media reports. The action is connected to an ongoing investigation into an alleged Rs 2,434 crore financial fraud involving Mumbai-based conglomerate Jai Corp Limited, where Dream11 co-founder Harsh Jain’s father, Anand Jaikumar Jain, is a director. Investigators are examining whether the funds raised for real estate investments were instead diverted to foreign companies. The searches were carried out under the Prevention of Money Laundering Act (PMLA) and also covered properties linked to Anand Jain. More than 20 premises were searched in Mumbai, while additional locations in Nashik, Bengaluru and Raipur were also raided. According to reports, the agency is probing possible financial links between Jai Corp, Dream Sports, the parent company of Dream11, and Bhavit Sheth. Investigators are examining whether funds allegedly siphoned off in the Jai Corp case were channeled through a network of entities, including technology and sports gaming firms, using structured transactions to obscure their origin. The money laundering probe originates from a CBI case against Anand Jain, Jai Corp Limited and others, following a petition by activist Shoaib Richie Sequeira. The FIR was filed after the Bombay High Court directed the CBI in February to form a special investigation team to probe alleged financial irregularities, including misuse of public funds, investor fraud, round tripping through overseas shell firms, and diversion of funds via fictitious transactions and invoices. As per the CBI’s case details, the special investigation team is probing multiple suspected offences, including irregularities in domestic real estate investment funds, questionable transactions involving private funds in Mauritius and Jersey, improper futures trading, diversion of bank loans to offshore entities, and fraudulent export related transactions linked to Australia and the United States.

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