Fantasy Sports in India: Game of Skill or Game of Chance?

Author: Vedika Mishra, KC Law College


Abstract


In India, Cricket has captured millions of hearts with its beauty and thrill, and so has fantasy sports. With advancements in internet and technology, there has been a steady rise in the number of users, which continues to grow. What is the legal status of fantasy sports in India? Is it a game of skill or a game of chance? Is it morally and ethically, correct? What distinguishes fantasy sports from gambling? These questions have always been raised and India has witnessed an ever-lasting debate on this. This article will explore the legal complexities surrounding fantasy sports in India. With the constant increase in financial losses and addictive behavior among users, the need for a comprehensive legislation to govern fantasy sports in India is quite evident.

Fantasy sports in India are on the rise. But what makes them so popular among the sports fanatics? Fantasy sports are online games, where users create a virtual team of the real players from the sport that they are competing in. Based on the performance of the selected players in the actual match, points are awarded. These points are converted into fantasy points. The more fantasy points you have, the higher your chances of winning cash prizes. On the other hand, gambling involves risking money or another item of value on an event which is uncertain in nature regarding its outcome, with the intention of earning monetary gain.



To The Point


Fantasy sports and gambling both involve a certain degree of uncertainty in terms of the event’s outcome, which makes the monetary reward uncertain too. There is a sense of similarity between both in terms of the uncertainty involved. But what makes them different? The difference lies in the concept of game of skill and game of chance. Before diving into this concept, let us understand the legal status of fantasy sports in India.

In India, fantasy sports are legal and allowed in the entire country, except in a few states like Odisha, Telangana, Andhra Pradesh, Assam and Gujarat. This is because gambling and betting falls under the entry 34 of the state list as per the Constitution of India, which means that the states have the power to make laws relating to the subject of gambling and betting. Thus, fantasy sports is allowed in a few states and also banned in a few.

Moreover, there is a central legislation dealing with the same subject matter, which is a colonial legislation. The Public Gambling Act, 1867, deals with the same subject matter. As per the central legislation, gambling of any form wherein the action of putting in money or betting for money is illegal, except for a game of skill. The legality of these activities depends on the fact whether it is a game of skill or game of chance. Game of skill is considered legal, whereas the game of chance falls under gambling and is not legal.

The Courts in India have held fantasy sports to be a game of skill as these games often require the user to use their understanding of the sport, pitch conditions, availability of players, knowledge and experience in order to participate in such contests. Therefore, fantasy sports is legal in India as it is a game of skill.


Use of Legal Jargon


In India, there is no uniform central legislation governing online gambling or fantasy sports. While the Public Gambling Act, 1867 regulates traditional forms of gambling, it does not explicitly address online platforms or fantasy sports. This leads to a legal vacuum and regulatory grey area.

The applicable legislations are as follows:
Public Gambling Act, 1867
The Consumer Protection Act, 2019
State Laws dealing with gambling and betting:
Andhra Pradesh Gaming (Amendment) Act, 2020
Telangana State Gaming (Amendment) Act, 2017
Kerala Gaming Act, 1960
Assam Game and Betting Act, 1970

Bombay Prevention of Gambling Act, 1887
Punjab State Gaming Act, 1963
Nagaland Prohibition of Gambling and Promotion and Regulation of Online Games of Skill Act, 2016
Sikkim Online Gaming (Regulation) Act, 2008
Information Technology Act, 2000

The above- mentioned legislations do not explicitly deal with fantasy sports and online gambling platforms. Nagaland and Sikkim have legislations particularly dealing with online gambling platforms, whereas states like Odisha, Telangana, Andhra Pradesh and Assam have banned fantasy sports platforms, irrespective of the skill element. Some states continue to colonial-era legislations.


The Proof


Game of Skill or Game of Chance

Since there is no comprehensive legislation as such, the legality of online gambling usually depends on whether it is a game of skill or a game of chance, for which there is no clear distinction in the Act. Thus, it is entirely dependent on the state laws governing gambling and the interpretations made by the courts in India.

Game of chance is illegal in India. States like Goa and Sikkim have allowed licensed gambling in their respective states. This is entirely dependent on luck and is played randomly. There is no involvement of any skill. No prior experience or knowledge is required. Basically, it all comes down to your luck. Therefore, it is illegal in India.

Game of skill is legal in India. As there is a need for knowledge in such games. Luck does play an important role here too, but skills are predominant. There is a requirement of prior knowledge and experience in relation to the sport. It involves rational and analytical decision making. The user needs to use his logical mind. Ultimately, the outcome is decided as per the skills and knowledge of the user. Therefore, it is legal in India.


Predominance of the skills

Despite luck being involved, it is actually a game of mind. The user has to use all his knowledge regarding the sport to make a good decision. In case of a Cricket match, the user will have to research about the availability of the players, team combination, current form of the players, match situation, proper selection of the captain and vice-captain of the virtual team. After analyzing all these factors, the user makes a virtual team of all the real players. The performance of the selected players eventually decides the outcome. Therefore, calling this a mere game of chance would be simply unfair, as the decision making involves logical and analytical thinking. Definitely, there is luck involved too. But skills are a predominant factor in deciding the outcome of the game.
The performance of the user is not random. Thus, there is no element of gambling in such games. It is based purely on skills.


The Hon’ble Supreme Court on Fantasy Sports

In 2021, the Hon’ble Supreme Court held that fantasy sports is a game of skills. The Court stated that fantasy sports platforms are a game of skill and not gambling. Online platforms are also protected under the Article 19 (1) (g) of the Constitution of India provides the Right to practice any profession or to carry on any occupation, trade or business to all citizens.

Skill has a much greater and predominant influence on the outcome of the fantasy sports games than any chance or luck. And it would be unfair to call it a mere game of chance as there is an involvement of research, skills, knowledge and judgement of the user. Thus, it does not fall under the category of gambling.

So, in states where fantasy sports online platforms are legal and regulated by state laws, users will be allowed to play fantasy sports. On the other hand, states that have banned such fantasy sports online platforms will continue to do so.


Case Laws


K.R. Lakshmanan v. State of Tamil Nadu (1996): This case held that betting on horse-racing is legal in India. It was considered as a game of skill and not gambling. It also set the precedent of the factors distinguishing the game of skill and game of chance. As the person would have to use his knowledge and skills to assess the horse and jockey. Therefore, it involved knowledge and experience of the person betting on horse-racing and was not a mere game of chance.


Varun Gumber v. UT of Chandigarh (2017) and Gurdeep Singh Sachar v. Union of India (2019): In both these cases, the Punjab and Haryana High Court and the Bombay High Court held that Dream11, a fantasy sports online platform is legal in India as it is a game of skill and not a game of chance. The user has complete control on the selection of the virtual team, backed by his knowledge, research, skills and judgement. Thus, calling it a mere chance of luck would be unfair. Therefore, fantasy sports are legal in India. The Hon’ble Supreme Court of India upheld the judgement in 2021. The court held that skill has a much greater and predominant influence on the outcome of the fantasy sports games than any chance or luck.



Conclusion


Lastly, gambling is a socio-economic evil. Definitely, there is an ongoing debate on whether fantasy sports are really a game of skill or a game of chance. There have been numerous cases of financial losses, suicides and deaths. Since, it is highly addictive in nature, it is extremely significant to indulge in it, with responsibility. There should be more awareness regarding the addictive nature of the game and how one should be tackling it. As the current legislation does not explicitly address online platforms or fantasy sports. This leads to a legal vacuum and regulatory grey area. There is also a need of a comprehensive legislation dealing particularly with fantasy sports and online gambling platforms as there is no uniform law for this subject. Therefore, a uniform and comprehensive law would solve most of the problems regarding fantasy sports in India.



FAQS


Q1. Can fantasy sports be treated as gambling or betting?

No, as fantasy sports are legal in India. There is an involvement of skills, research, knowledge and judgement. It is a game of skill and a game of chance. On the other hand, gambling and betting is purely based on luck. Therefore, fantasy sports cannot be treated as gambling or betting.



Q2. Are fantasy sports legal across all Indian states?

In India, fantasy sports are legal and allowed in the entire country, except in a few states like Odisha, Telangana, Andhra Pradesh, Assam and Gujarat. Nagaland and Sikkim have legislations particularly dealing with online gambling platforms, whereas states like Odisha, Telangana, Andhra Pradesh and Assam have banned fantasy sports platforms, irrespective of the skill element. Some states continue to colonial-era legislations.


Q3. What is the difference between game of skill and game of chance?

Game of chance is illegal in India. States like Goa and Sikkim have allowed licensed gambling in their respective states. This is entirely dependent on luck and is played randomly. There is no involvement of any skill. No prior experience or knowledge is required. Basically, it all comes down to your luck. Therefore, it is illegal in India.
Game of skill is legal in India. As there is a need for knowledge in such games. Luck does play an important role here too, but skills are predominant. There is a requirement of prior knowledge and experience in relation to the sport. It involves rational and analytical decision making. The user needs to use his logical mind. Ultimately, the outcome is decided as per the skills and knowledge of the user. Therefore, it is legal in India.

Q4. Is playing fantasy sports punishable in India?

Playing fantasy sports is not punishable in India as long as you are doing so, in a state which allows fantasy sports. Whereas, if you do so in a state which has banned such fantasy sports platforms, it shall be punishable under the respective State law.