Key Points
Star25Pro ensures full compliance with all central and state legislation in India to protect our users completely. Each contest on our platform is carefully designed to adhere to the valid legal verdicts and regulations in India.
Below are the key points from an Indian High Court’s judgment specifically regarding fantasy games. A challenge to this judgment was dismissed by the Supreme Court of India as well:
- The Court ruled that playing fantasy games requires substantial skill, discretion, and judgment. Success in fantasy games depends on users’ superior knowledge, judgment, and focus.
- The Court held that ‘the element of skill’ plays a major role in the outcome of fantasy games, which follow this format:
- Users must select a team consisting of at least the same number of players as a real-life sports team (e.g., 11 in cricket/football, 7 in kabaddi, and 5 in basketball). Currently, we offer only Cricket.
- All contests run for the duration of a full sports match.
- No team changes are allowed after the match begins.
Based on these factors, the Court ruled that playing fantasy games constitutes a "game of mere skill," which exempts online fantasy games from the provisions of the Public Gambling Act, 1867 (PGA).
Furthermore, the Court ruled that online fantasy games are a legitimate business activity protected under Article 19(1)(g) of the Constitution of India.
Laws Governing Games of Skill in India
To understand the concept of "games of mere skill," we must examine India's pre-independence gambling legislation. The first gambling law, the Public Gambling Act, 1867 (PGA), was enacted to regulate public gambling and the operation of gaming houses. However, the PGA does not apply to games of mere skill. Most Indian states have adopted versions of this central act, with or without modifications.
However, certain states have stricter laws, as seen in:
- Assam Game and Betting Act, 1970
- Orissa (Prevention Of) Gambling Act, 1955
- Telangana State Gaming (Amendment) Ordinance, 2017
These states have enacted regulations to restrict gambling-related activities. These laws either prohibit activities that involve chance or impose stricter skill-based criteria to determine whether a game qualifies as a skill-based game.
In Assam and Orissa, games of chance are strictly prohibited, and the law does not provide exemptions for games of mere skill. Therefore, any game involving a mix of skill and chance cannot be played for cash in these states.
In Nagaland, the government enacted the Nagaland Prohibition of Gambling and Promotion and Regularisation of Online Games of Skill Act, 2016. This law mandates licensing and regulation of online skill-based games and provides legal protections to licensed operators.
The Supreme Court of India has clarified the definition of "mere skill" in legal rulings, stating that:
- Competitions where success depends on a substantial degree of skill do not qualify as gambling.
- Even if an element of chance is present, a game is still classified as "mere skill" if skill is the dominant factor.
Thus, games of skill differ from games of chance—while games of chance rely entirely on random events, games of skill require significant human effort, knowledge, and decision-making.
Legal References:
- State of Bombay v. R.M.D. Chamarbaugwala, AIR 1957 SC 699
- Varun Gumber v. Union Territory of Chandigarh and Ors, CWP No. 7559 of 2017