The rise of smartphones and affordable internet has given a major boost to online gaming and betting apps in India. Platforms like Dream11, MPL, and My11Circle have become household names, offering users the chance to win real money through fantasy sports, card games, and other online contests. However, the legality of these apps remains a gray area, often debated due to outdated laws, state-wise variations, and the thin line between games of skill and games of chance.
Legal Framework: Skill vs Chance
The primary law governing gambling in India is the Public Gambling Act, 1867, which prohibits running or visiting gambling houses. However, it does not explicitly mention online gaming, leaving space for interpretation. More importantly, gambling is a State subject under the Constitution, allowing each state to legislate on it independently.
Indian courts have consistently drawn a line between games of skill (permitted) and games of chance (prohibited). In K.R. Lakshmanan v. State of Tamil Nadu (1996), the Supreme Court held that a game where skill predominates over chance is not gambling. In Varun Gumber v. Union of India (2017), the Punjab and Haryana High Court ruled that fantasy sports like Dream11 are games of skill, and hence legal.
State-Wise Confusion
Some states like Tamil Nadu, Andhra Pradesh, Telangana, and Odisha have banned online real-money games, regardless of skill or chance. Others like Kerala and Karnataka tried imposing similar bans, but their High Courts struck them down for violating the right to trade and practice a profession under Article 19(1)(g). This leads to a fragmented legal landscape, where what is legal in one state may be illegal in another. Users are often unaware of these distinctions, leading to unintentional violations.
Government’s Response
In 2023, the Central Government amended the Information Technology (IT) Rules, requiring online gaming platforms to register with self-regulatory bodies and avoid any game involving “wagering or betting.” Platforms must also implement strict KYC norms and grievance redressal mechanisms. However, critics argue that the lack of a clear central law keeps the issue unresolved. The Supreme Court is currently hearing cases related to fantasy sports and betting, which may lead to nationwide clarity.
India has over 400 million online gamers, and the gaming industry is projected to exceed ₹23,000 crore by 2025. But this boom is not without consequences. Several cases of addiction, debt, and even suicides have been linked to online betting, especially among youth. In Tamil Nadu, over 25 suicides in 2022–23 were reportedly tied to losses from real-money gaming. It is the need of the hour to make and implement stringent action against Illegal gambling, and set proper laws and definitions to differentiate between legal and illegal inline gaming platforms.
Source: https://www.blitzpoker.com/blogs/game-of-skill-vs-game-of-chance/
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