Is fantasy cricket apps legal in India

Indian Fantasy Cricket has taken the country by storm in less than a decade, with millions of people using various fantasy cricket sites in India to play fantasy cricket. There are around 40 apps or websites that cater to this service, with almost every other app following a similar route. Interestingly, there are official fantasy cricket games for IPL and ICC as well along with the private fantasy cricket sites in India, such as Gamezy.

Is fantasy cricket apps legal in India

Fantasy Cricket in India

In a nation where cricket is more of a religion than a sport, it is only natural to expect the sport to have millions of fans. As a result, fantasy cricket have flourished extremely well in India. If you ask how this concept has done so well in India, the answer would be simple – Indian people do not love anything as passionately as cricket. You must have noticed how there is a cricket pundit in every household who knows even the smallest stat or detail about a player. These Indian Fantasy leagues have tapped into such people’s hearts and helped them earn money by using their knowledge. All these small scale pundits prove to be the eventual winners of different fantasy cricket leagues.

What is a skill-based game?

Before we dig deeper into the fact-finding journey whether or not fantasy sports is legal in India, it is essential to understand what’s a skill-based game. All kinds of games that require an understanding of the game, analysis, thinking, and talent to win the game can be termed as skill-based games. Fantasy cricket gaming requires understanding of the game, selection of teams, player performances analysis, external factors research and much more.

Is Playing Fantasy Cricket Legal in India?

“Why fantasy cricket is legal in India?” is one question that pops up in almost everyone’s mind when India as a country is completely against betting, with it not even being legal. This is where you need to understand that betting on a sport is totally different from playing Fantasy cricket. In fantasy cricket, you are basically using your knowledge to predict the performances of real-life players and earn money through the right predictions.

In fact, the High Court Ruling came in favour of such fantasy cricket leagues in India as they stated how it is the skillset and knowledge of a person that is winning him the prizes. Also, since they cannot change the players they choose once the match starts, it is not betting in any way. Therefore, all such apps or websites are exempted from the provisions of the Public Gambling Act, 1867 (PGA)..

As per Article 19(1)(g) of the Indian Constitution, a game of skill where players must use their expertise, talent, knowledge, and strategies to analyse, think, and develop techniques to win is a legal activity.
Winning is possible through judgement and analysis, and not just luck. As a result, fantasy cricket comes under the ambit of a game of skill where players need to use their expertise and knowledge of sports to create fantasy teams.
In February 2020, the Rajasthan High Court mentioned that Dream11 is a game of skill and does not involve offences of betting and gambling while dismissing the public interest litigation (PIL) against it. A challenge to this verdict was dismissed by the Supreme Court of India as well.
In August 2021, the Supreme Court said that fantasy sports have considerable skill and judgement and is, therefore, legal. The success of fantasy games depends on the user’s knowledge, attention, and execution. As a result, success in fantasy cricket is not dependent on probability.
Therefore, Dream11 is legitimate business in India and does not fall under the Public Gambling Act, 1867. According to the Federation of Indian Fantasy Sports (FIFS) – the country’s first and only self-regulatory Sports Gaming industry body, games of skill are excluded from the definition of most gambling legislations and therefore are legal to play.

Legal Status of Fantasy Cricket Apps

Games of Skill vs. Games of Chance

The Indian judiciary has consistently held that games requiring a substantial degree of skill fall outside the purview of gambling and are considered legal. Fantasy cricket platforms argue that their games involve skill as participants need to analyze players’ performance, pitch conditions, team composition, and make strategic decisions while creating their teams.

In landmark judgments, such as the 1968 R.M.D. Chamarbaugwala case and the 1996 State of Andhra Pradesh v. K. Satyanarayana case, the Supreme Court of India recognized the distinction between games of skill and games of chance. The Court held that games involving a predominant element of skill are not gambling and do not violate the Public Gambling Act, 1867.

The Legality of Fantasy Cricket Apps in India

“Is it allowed in India to use fantasy cricket apps?” is one question that practically everyone has since India as a country is entirely not in favour of betting, with it even being illegal. This is where you must understand that betting on a sport is not the same as playing Fantasy cricket. In fantasy cricket, you basically use your knowledge to forecast the performances of real-life players and earn money if your predictions are correct.

To understand the legality of fantasy cricket apps, it is essential to examine the legal framework governing online gaming and gambling in the country. In India, laws pertaining to gambling are primarily governed by the Public Gambling Act, 1867. The Act prohibits the operation of gambling houses and the facilitation of gambling activities in physical spaces. However, the Act does not explicitly address online gambling or fantasy sports.

CASE

In 2017, the Hon’ble Supreme Court of India rendered a landmark judgment in the case of K.R. Lakshmanan v. State of Tamil Nadu, stating that games involving substantial skills are not considered gambling and are protected under the Constitution of India. The court further clarified that games involving a substantial degree of skill fall outside the ambit of gambling legislation.

This judgment laid the foundation for the legality of fantasy sports in India, including fantasy cricket. Fantasy cricket is considered a game of skill rather than a game of chance, as users rely on their knowledge of players, statistics, and strategies to create their teams. It is not merely dependent on luck or chance.

To provide additional clarity, several states in India have passed specific legislation or issued clarifications regarding the legality of fantasy sports. For instance, the High Courts of Punjab and Haryana, and later the High Court of Rajasthan, upheld the legality of fantasy sports and observed that these platforms involve the skill of participants. Some states have also enacted laws to regulate fantasy sports platforms and ensure fair play and consumer protection.

However, it is important to note that the legal status of fantasy sports in India may vary from state to state. While some states have explicitly legalized and regulated these platforms, others may not have specific laws addressing them. In such cases, the legality of fantasy cricket apps is usually determined based on the skill vs. chance test established by judicial precedents.

Another aspect to consider is the presence of real money involvement in fantasy cricket apps. Most fantasy cricket platforms allow users to participate in paid contests, where they can win cash prizes based on the performance of their virtual teams. The legality of such paid contests has been a subject of debate and interpretation.

The legality of real money involvement depends on whether the activity is considered gambling or a game of skill. If the platform can establish that skill predominates over chance, it is likely to be considered legal. However, platforms must also comply with relevant tax regulations, anti-money laundering laws, and ensure responsible gaming practices to maintain legality and protect users.

FAQs

What is the difference between a game of skill and a game of chance?

A game of skill is one where the outcome is predominantly determined by the player’s knowledge, expertise, and decision-making. In contrast, a game of chance relies more on luck and randomness.

Are fantasy cricket apps legal in India?

Yes, fantasy cricket apps are legal in most parts of India. The legality is based on the fact that they are considered games of skill rather than games of chance. The Supreme Court of India has upheld this distinction, making fantasy sports legal.