How Fantasy Sports Apps Taking Advantage Of Soft Gambling Laws?

How Fantasy Sports Apps Taking Advantage Of Soft Gambling Laws?: Gambling laws in India are very weak, taking advantage of which many fantasy apps are doing their work.

Not only this but also much other gaming applications are also taking benefit of this and they are working on a big scale in India.

They justify themselves legally by calling the Game Of Chance a Game Of Skill. Such applications allow people to place online bets on different kinds of games and win huge money.

In this article, we will try to discuss How are fantasy sports apps taking advantage of soft gambling laws in India?

What Are The Laws For Gambling In India?

The Public Gambling Act of 1867 was enacted by the government in British India to curb gambling in India, under which gambling and running of gambling houses, person gambling at home, under section 45 of the Indian Penal Code, 1860 Provision was made for prosecution.

This act allows all the states of India to make different laws related to gambling. As a result, some gambling houses in Goa, Daman, Diu, and Sikkim have been allowed to operate legally.

The Public Gambling Act of 1976 was enacted for the states of Goa, Daman, and Diu. Apart from this, amendments have been made to this act from time to time.

Also on 4 March 2009, the Government of Sikkim enacted the Sikkim Online Gaming (Regulation) Act, 2008, under which gambling houses have to comply with the Online Gaming (Regulation) Rules, 2009 to obtain a license.

The Act legalizes online games of chance or online games of skill such as cards, poker, blackjack, etc., while prohibiting fantasy sports (such as Dream 11). The IT Act of 2000 also comes into force in the case of online gaming.

Status Of Gambling Laws In India:

According to gambling laws, horse racing and lotteries are fully legalized in India. Therefore online and offline lotteries are legal in states like Maharashtra, Kerala, Goa, Arunachal Pradesh, Assam, Madhya Pradesh, Mizoram, Meghalaya, Manipur, Punjab, West Bengal, Nagaland, and Sikkim. 

That both online gambling and offline casinos have been legalized only in Sikkim, Goa, and Daman.

Gambling is banned in Maharashtra state under the law of Bombay Prevention of Gambling Act of 1887. Games of skill are illegal in Arunachal Pradesh as per Telangana State Gaming Act, 1974, and as per Telangana and Arunachal Pradesh Gambling (Prohibition) Act, 2012.

The Uttar Pradesh (UP) Act 21 of 1961 Section 3, states that a person found in the course of gambling or in a gaming house shall be deemed to be guilty unless he proves it to be false. does not do

All online gaming and skill games were banned in the state of Karnataka as per the Karnataka Police (Amendment) Act, 2021, but in 2022 the Karnataka High Court lifted the ban. Similarly, individual states have their own gambling laws.

According to the Public Gambling Act of 1867, if caught betting, the player or person running the gambling house can only be fined ₹200 and/or imprisoned for three months. Any bettor or owner of a gambling house can easily face these punishments.

What Are Fantasy Sports Apps? What Are Its Rules?

The fantasy sports app allows its users to create their own fantasy team based on the players playing in any sports match.

With this team, the user can join 1 or more cash contests. After this, points are awarded based on the player’s performance in the match and the team that scores the most points comes first in the contest.

For example, if there is going to be a match between Pakistan and India, then you should select a total of 11 players from both teams, but only a maximum of 7 players should be selected from 1 team.

In this fantasy team, you should choose the batsman, bowler, wicketkeeper, and all-rounder of the real team. The limit of minimum & maximum options is also specified on all sides.

Points are chosen according to the quality and grade of each player. Now, you should choose a total of 11 players with a thousand points. You can’t make changes to your team after the match has started. 

Which States Have Banned Fantasy Apps?

Fantasy apps are working legally in many states of India, but fantasy apps are banned in the states of Assam, Sikkim, Nagaland, Odisha, Telangana, and Andhra Pradesh.

In 2021, Dream 11 was banned under the new law in Karnataka as well, but in 2022, the Karnataka High Court lifted the ban on them, terming it unconstitutional.

How Are Fantasy Sports Apps Taking Advantage Of Soft Gambling Laws In India?

Fantasy apps are working legally in many states of India, while the laws of some states make them illegal. However, gambling is completely banned in India except in a few states.

A person gambling or running a gambling house is prosecuted under section 45 of the Indian Penal Code, 1807. But many states in the country have legalized games of skill, including lotteries and horse racing.

At present, many online gaming apps are also working legally, and describe themselves as skill gaming apps. Games that require a strategy to be developed prior to play and strategies to be developed during gameplay are classified as games of skill.

The law applies a double standard in this case because in sports betting the bettor also makes strategies before the start of the match and during the match itself. But still, batting has not been legalized in India.

Since the gambling laws in India are very old, there is no mention of online or internet gaming in it. Furthermore, the law of the country legalizes sports of skill and illegal sports of chance.

Along with this, horse racing and lotteries have also been legalized in almost all states, while there seem to be fewer games of skill and more games of chance.

There is no use of any person’s strategy in the lottery because its result can only be predicted. Although there are many different types of lotteries in this too, the research done by the player before placing the bet comes in handy.

Apart from this, in horse racing, a person puts a bet on the best horse after researching beforehand. It can be considered a game of skill, as it requires the bettor to gather information on the past performance and current position of the jockey and horse, along with the game itself.

The game of skill and the game of chances both are different aspects. Games of skill should include only games that are determined solely by the skill of the player, eg: chess.

In a fantasy sports app game, the player should use their strategic skills and thoughts till the end. Apart from this, all other cards, casino, fantasy, and sports betting are all based on probabilities. Everything depends on your luck in this.

Even the inclusion of poker as a game of skill raises many questions. Yes, but Online Rummy is based on the game of analytical skill.

But it is very clear that fantasy sports apps taking advantage of soft gambling laws in India. Due to the weak gambling laws in India, there is no restriction on online gaming and online betting.

It seems that the Government of India does not even want to stop it. (Sports Apps Taking Advantage)

How Fantasy Sports Can’t Be A Game Of Skill?

Indian laws and experts consider fantasy sports as a game of skill and sports betting as a game of chance. In both types of games, the player collects information related to the ground, the player’s current performance, the pitch, and the weather before the start of the match, and also spend money.

In fantasy apps like Dream 11, there is an option to join a contest by spending thousands of rupees. Joining a game by paying online money in a fantasy app is also a type of online bet, as the player’s odds of winning are based on the actual player’s interpretation on the field.

That is, if the player doesn’t function well on the field, then they can not win. Besides, there are more chances to lose in fantasy games. If compared to sports betting, in sports betting, you can also cover your previous losses by strategizing during the match.

It is ridiculous to think of fantasy cricket as a game of skill and sports betting as a game of chance. If players take a nearer look at both the structures above, fantasy cricket can’t be a game of skill under any case.

Because here your defeat and victory are determined by the performance of the 11 players selected by you. Apart from this, cricket batting is determined by the performance of any one team or by the performance of any one batsman or bowler.

For example, if you have placed a bet on a batsman scoring runs, your bet will depend on the performance of that batsman. If you lose this bet, you can also cover your previous losses by betting on the next batsman. There are too many possibilities to win online money here. Along with this, sports betting also requires the bettor to have a strategy.

Fantasy Sports Apps Taking Advantage Of Soft Gambling Laws In India:

Gambling laws in India are archaic and weak, as well as poorly defined as games of skill and games of chance. Many games of chance are classified as games of skill in the country, while games that rely on any kind of chance should never be classified as games of skill.

Also, if fantasy sports can be considered a game of skill, then sports betting should also be considered a game of skill, even though fantasy sports carry more risk than sports betting. Because it has to depend on the performance of 11 players selected from both teams.

Even though there is more research into this than sports betting, your chances of winning are smaller. Also, once the match starts, you depend on the performance of the players. Yes, if there was a chance to showcase your skills in the middle of the match, then it could be classified as a skill game, but it is not the case here at all.

After joining the contest by making a team in Dream 11, the chances of losing your money are high and there is no other way to cover your loss in that match. Very few people win much money in it. In contrast, with sports betting, you can plan your strategy throughout the match and bet using your skills and knowledge.

Actually, fantasy apps are taking advantage of weak laws just to do business and the government is also getting its benefit. Along with this, a 30% tax has to be paid on the amount won above ₹1,00,000 in fantasy apps. Along with this, you also have to pay taxes while filing income tax returns.

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