One of India's most popular gaming apps, Dream11, is facing a police case for alleged violation of a new local law that prohibits online gaming. The state law, or Karnataka Bill, which came into effect the week of October 9th, bans online games involving betting and wagering and "any act or risking money, or otherwise on the unknown result of an event including on a game of skill."

Dream11 had continued to operate after the gaming ban even though several gaming apps have stopped offering services to users in the country. Executives at Dream11 told Reuters that it believes "the complaint is motivated," and that it is examining all its legal options.

"We are a responsible, law-abiding company and will extend our full cooperation to any authorities," a spokesperson from Dream11 said.

The Karnataka law imposes hefty fines and prison terms on violators and has been implemented amid growing concerns that online gaming platforms, like gambling, are addictive and can cause financial harm. It has also intensified concerns that growing state regulations could hit the booming gaming sector in India, where foreign investors have already pumped in millions of dollars in recent months. Dream11 is seeking a U.S. listing by early 2022, local media has said.

(All information was provided by Reuters)