Fantasy Sports - A legal approach for all the Online games

With the increasing craze of sports in India, online fantasy sports are growing. In 2020, fantasy sports has generated a revenue of Rs. 16,500 crores - indeed a revolutionary success of any sector.

It is quite unfortunate that such a promising industry is dealing with legal battles with the government. But over time, many Indian states accepted the fantasy games and have awarded them legal status in the country.

Many fantasy sports platforms have fought the battle of being legal against courts, but with time things are getting pretty good. After seeing the popularity and success of Online Fantasy Sports, many states are slowly lifting the ban from these online fantasy sports and allowing investors to invest their money in the fantasy sports industry.

Legalisation of Fantasy Sports Platforms in India

Under Schedule VII, nothing is mentioned related to Fantasy Gaming. However, under the List II of the Seventh Schedule on Entry 34, gambling and betting are mentioned as per the legislature of the State.

Public Gambling Act of 1867

Even before the Constitution adoption, gambling apps were introduced under the Public Gaming Act. Today the Gambling act comes under state legislation.

The battle of Fantasy Sports is hanging in between two perspectives about online gaming as a “game of skill” or a “game of chance”. But, fantasy sports demand mathematical ability and game knowledge to play and are considered as the game of skill. Therefore it is legal as per the state gambling rules in the country.

As per the gambling act, all the games of chance are restricted by many states and considered illegal. Vision11 is one of the legitimate Fantasy Sports solutions.

Two legal cases against the Punjab and Haryana court, before coming to Bombay high court, made the Dream 11 - “a game of skill”.

Legalization of Playing Fantasy Sports in the States of India

Except for a few states like Assan, Sikkim, Nagaland, Andhra Pradesh, Odisha, and Telangana, playing fantasy sports is legal all over India. Recently, the Tamil Nadu government has removed the ban from playing fantasy sports and now considered online gaming as a “game of skill”. In the state of Nagaland and Sikkim, the fantasy sports operators have to get licenses from the state governments to run their business.

There is a lot of confusion about both fantasy gaming and gambling, one is considered legal and the other is illegal.

Niti Ayog has released a draft paper for all the online fantasy sports platforms. Let’s know more about the guidelines and information mentioned in the released paper.

Legal Guidelines for Online Fantasy Sports Platform by Niti Aayog

Skill Based Games Promotion

Niti Ayog clearly states that only those fantasy sports games will be supported which are based on skills and not chance. All online games and fantasy sports must maintain the statistical data of all the players and submit it to the self-regulatory body.

Prohibit Minors from the platform

Users below the age of 18 are considered minors and as per Niti Aayog, offering paid games services to these minors is not allowed. This law saves minors from getting in contact with such paid games and contests.

Real World Feeling

All the OFSPs have to draft such a platform that offers the experience of the real world as much as possible.

Transparency

The terms and conditions of the fantasy sports platform should be transparent and well explained. It should cover all the dimensions of the game like contests, events, DFS, etc.

Prohibit on promoting Gambling

There should not be any kind of advertisement of Gambling services on online gaming and fantasy platforms. If any such activities have been found, strict action will be taken against the platform and no such illegalities and offenses will be entertained.

Advertisement Strategy

The advertisement created for such platforms should be aligned with the regulations of the Advertising Standards Council of India. All the advertisements should involve the content regarding the no assurance or guarantee of winning money by playing fantasy sports. Also, the advertisement should not mention anything which is reflecting that OFSP is a stable income source.

If all the fantasy sports operators follow the above guidelines will not be considered an offender.