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Rajasthan High Court on 16th October discharged a petition filed as a PIL against Dream 11 Fantasy Private Limited, claiming that the game on the platform is nothing but betting on cricket. The PIL said that online fantasy sports games are games of chance and hence is an illegal act of betting.
The two-judge bench of Chief Justice Indrajit Mahanty and Justice Mahendar Kumar Goyal stated that since the result of the game depends on the skills of the contestants and not just a chance of winning or losing of the virtual team created by the user, the game is based on the skills of the users and it comes under Article 19 (1) (g) of the Constitution.
It was alleged that the company is not paying GST under proper classification and is paying an amount of about 10% less than the right amount. The plaintiff mentioned that it comes under Section 65-B (15) of the Finance Act, 1994 (betting or gambling), Section 2 (13) of Central Goods and Service Tax Rules Act, and Rule 31-A of CGST Rules.
The PIL raised two issues:
The Court stated that the game is not determined just by chance, but also the skill of the participant regulate the result of the game is the main factor in the outcome of the game. The Court said that whether any team in the real-life match wins or loses is immaterial since the selection of a virtual team by the participant involves choosing players from both the teams playing in the real team.
The Court noted that the games of Dream-11 that include skills is a business activity and not wagering and has protection granted by Article 19 (1) (g) of the Constitution. The submission of Dream-11 stating that fantasy sports formats are globally known as a great tool for fan engagement since they provide a platform for sports lovers to involve with their favourite sports along with their friends and family.
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