Abstract
In this article, we discuss the laws and the emergence of online gaming in India. Online games mean that kind of games that are played either on the computer or on the mobile phone worldwide with other players over the internet. In the early ’90s, the platform of online gaming was rigid and people usually played these games just as a hobby. But in the present scenario, online gaming has become the earning source for most individuals. Because of the conflicts that recently arose in this platform various rules and laws have been framed. In this article, we discuss those laws in respect of online sports.
Online gaming has drastically improved the culture of video games in the Indian scenario. Online gaming is a video game that is played on the internet or any other computer network including PCs, consoles, and mobile devices. Online gaming has attracted players from different age groups, nationalities, and occupations. There are various types of online games that range from simple text environments to high graphics games. Countries like China and the USA are generating a lot of revenue from these games in the last few years. Seeing to the current online gaming market development, India is also trying to establish a market for online gaming by introducing high profile games like FAUG (Fearless and United Guards) and recently there’s an announcement of opening its office for the PUBG Mobile India the most trending game recently in order to generate revenue and employment.
Laws related to online gaming
In formulating laws for online gaming, two major aspects are taken into consideration i.e “ Skill and Gambling”. A few weeks ago, Google pulled Paytm from its play store for violating gambling policies1. The growing platforms like \”Dream 11\” and \”Paytm First Games\” raise questions about whether these apps are for online gambling as they include financial transactions but later on it was decided that these are the game of skills and not betting. With regard to dream 11 and other fantasy sports, there have been controversies since the year 2017 and the matter went to the various High Courts. In 2017 the Punjab and Haryana High Court ruled2 out that the format of Dream11 which involves picking 11 players from real lives on both sides is a game of skill and does not involve gambling. The court held that the element of skill had a predominant influence on the outcome of Dream11 under this, Participants have to choose a team consisting of at least the same no. of players as playing in a real-life sports team (e.g. 5 in basketball, 7 in kabaddi and 11 in cricket/football). All contests are run for at least the duration of one full sports match, No team changes are allowed by participants after the start of the sports match.
However this year the Supreme Court stated that it will go into the merits of the matter in detail and adjudicate accordingly. The Public Gambling Act, 1867 is the general law governing the gambling laws in India. Furthermore, the Constitution of India has provided significant regulations to frame state gambling laws in India. The Gambling Act is a central enactment that is followed by most of the states but, there are some states which have their own legislations with respect to the gambling laws in India.
Game of skill v. Game of chance
The laws which are formulated in India are not against those games which involve skill rather the laws are generally made against those games which involve betting. Online gambling laws prohibit betting and wagering and it differs from state to state, which means one game is permitted in a particular state but is prohibited in another. If we go through the state gambling laws we would found that the concept of “Game of Skill”3 is excluded from gambling except in the State of Orissa and Assam. Also playing certain games like ‘Poker’ is permitted in the states like West Bengal but this would only be applicable to the territorial limits of the respective states. In other words, we can say that it is permissible only in some particular states like under the West Bengal Gambling & Prize Competition Act, 1957 card games such as rummy, bridge and poker are excluded from the definition of gambling and gaming. Such games can be organized for the public as long as a permit is obtained from the District Magistrate or Sub-divisional Magistrate or Commissioner of Police Calcutta.
But the main issue before the court in adjudicating a case is whether the game is a game of skill or a game of chance. In the case of “State of AP v. K.Satyanarayana”, the Supreme Court laid down that the game of rummy is the game of skill; however if it had been a clear case of gambling and the gambling houses were making a profit out of it then it would be an offence under the laws of Andra Pradesh.
The Supreme Court also held that the \”Tri Poker\” which is also known as a three-card game is a game of chance and gave a judgement in “M.J Sivani v. State of Karnataka”. In the game of poker, the court held that it is a game of chance because the players have no control over the cards and the final outcome is based on mere luck and not a game of skill. These laws are essential in India because India is a country where there are people with lot of talent and skill and there are also people who generally are not aware of gambling and betting. Because of the greed for money, they can indulge themselves in bad practices.
The best example we can take of is “YouTube Streamers\” because of the trending online gaming platform many people start streaming on YouTube and getting famous among the public. Also, we can take the examples of games like PUBG which organizes tournaments from time to time and awards cash prizes and it totally depends on the skill of the individual of how he performs in the tournament and a lot of people are earning from these types of games.
Online gaming continues to be a grey area. There are alterations in the gambling in India like wagering on horses is legal because it is a game of skill but wagering on the game of cricket is pure gambling. Nowadays the online gaming industry is growing worldwide the online gambling industry is increasingly regulated providing needed legislative clarity will not only help in curbing underground activity but will also help in creating new resources.
Online gambling is no longer a new phenomenon and mode of gambling, although there is still a relatively poor understanding of the use and impact of this activity. The dynamic nature of online gambling sites, evolving technology, innovative product offerings, and ever-shifting regulatory policies make it difficult to completely comprehend online gambling at a global level. A large number of sites and a multitude of owners and operators spread across many international jurisdictions make it difficult to assemble a comprehensive picture of the online gambling field. The types of laws that existed in India in relation to online gaming clarify that the game of skills if played with stakes will not be held as gambling.
It is clear that if a game is considered as a game of chance and played with stakes would constitute gambling under the state laws with the exception of few states. It is also noted that if a game is illegal in any state then its promotion of any kind would be considered as illegal as to the state laws of India. The Government, being a welfare State, acts in a manner to promote the economic and social well-being of its citizens, and therefore, it is incumbent upon the State to protect the vulnerable sections of the society. Regarding gambling, they can form a committee to survey the need for regulatory means for gambling and improvise on the current legislation based on such surveys. There are various legislations in the country for every state which recognize various activities of gambling as legal and regulate with the possible implementation of the legislation there is a need for segmentation which would provide which kind of gambling is legal and which is not for the whole country. Apart from this, no specific Central Laws are governing online gambling in India. Sikkim and Goa are the only States that expressly permit online gambling. Also, Such activities show no signs of being stopped or curbed; the least that could be done is to regulate them.
-Manvendra Singh Chauhan
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https://www.lawyered.in/legal-disrupt/articles/legal-position-online-gaminggambling-india/
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State of AP v. K.Satyanarayana – 1968 AIR 825, 1968 SCR (2) 387.
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M.J Sivani v. State of Karnataka – 4564 of 199.
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