What does the future of online gaming with stakes look like in India?

Before we delve into the details, let us first skim through the difference between a skill-based game and a chance-based game. Chance-based games are banned in most states, while games of skill are not.

In a game of skill, the player invests his time in learning, practising and honing a skill. In its 1957 order, the Supreme Court had said that games of skill would be where “success depends principally upon the superior knowledge, training, attention, experience and adroitness of the player”. Games can be a combination of skill and chance, but skill has to be the predominant factor.

With IPL just around the corner, fantasy gaming platforms such as Dream11 and Mobile Premier League have just received good news in a state that is home to one of their major markets.

On 14th February 2022, the Karnataka High Court struck down select provisions of the Karnataka Police (Amendment) Act 2021, through which the state government had banned online games that involved monetary stakes.

This comes as a huge relief for India’s online skill gaming and fantasy sports industry. The judgement follows other similar ones given by the Rajasthan, Punjab and Haryana, and Bombay high courts that recognised fantasy sports as games of skill and a legitimate business activity protected under the Constitution of India.

In October last year, the law banning betting and wagering in online games had been notified by the Karnataka government.

Source: https://www.business-standard.com/podcast/current-affairs/what-does-the-future-of-online-gaming-with-stakes-look-like-in-india-122021700061_1.html