Gaming crackdown: Dream 11 suspends operations in Karnataka, FIR booked against Founder

Dream11, the popular online gaming app backed by Tiger Global, has shut its operation in Karnataka following an FIR against founders.

The company faces a police complaint as the govt alleges it did not comply with the state's new laws that ban online gaming. In a statement to ET, Dream11, however, said the complaint was “motivated,” and it is examining legal remedies.

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Karnataka's online gambling law came into effect on October 5. However, Dream11 continued to operate until the first half of Sunday even though its peers including Mobile Premier League (MPL), Paytm First Games and RummyCircle had suspended their services for users in Karnataka.

Before Karnataka, states like Assam, Odisha, Nagaland, Sikkim, Meghalaya, Andhra Pradesh and Telangana had already outlawed online gaming apps.

Dream11 is the highest valued startup among real money gaming platforms. According to reports, Dream 11 is in late-stage talks to mop up a new round at over $8 billion valuation.