Legality

Gambling and gaming in India were initially regulated by the Public Gambling Act, 1867, which remains the central law on gambling. However, the authority to legislate on gambling now lies exclusively with the State Legislatures. Consequently, most states in India have enacted their own laws governing gambling and gaming.

It is important to note that while the Central Gambling Act and various State Gaming Acts regulate gambling, they also provide exemptions for games of skill. These laws typically include provisions stating that "nothing in this Act shall apply to games of mere skill wherever played."

Games of skill or mere skill are therefore excluded from the prohibitions imposed by Indian gaming laws, which primarily target betting and gambling activities. This distinction is critical because "Betting and Gambling" is a subject under the jurisdiction of individual states as per the Constitution of India.

The Hon'ble Supreme Court of India, through several judgments, has declared Rummy to be a game of skill or mere skill. Furthermore, recent judgments from various High Courts have also clarified that fantasy games constitute games of skill.

Definition of Skill

The Supreme Court of India has defined "skill" in terms of superior knowledge, training, attention, experience, and adroitness. While distinguishing between a game of chance and a game of skill, the Court has stated that, although the element of chance cannot be entirely eliminated, a game of skill is one where success primarily depends on the player's superior knowledge, training, attention, experience, and adroitness.

What is Gambling and How is it Different from Skill Games Under Indian Laws?

Gambling or gaming has been defined by the Supreme Court in 1996 as betting and wagering on games of chance only. Importantly, the Court specifically excludes games of skill—whether played for money or not—from the definition of gambling.

This distinction was further elaborated in the landmark case of "State of Bombay v. RMD Chamarbaugwala, AIR 1957 SC 699," where the Court held that competitions involving substantial skill are not considered gambling activities. A game of skill, while it may involve an element of chance, is one in which the outcome depends mainly on the player’s superior knowledge, training, attention, experience, and adroitness. Games such as golf, chess, and even Rummy have been classified as games of skill. The determining factor is whether "skill" or "chance" is the dominant element in the game.

The Supreme Court also addressed this in the case of Dr. K.R. Lakshmanan v. State of Tamil Nadu, (1996) 2 SCC 226, where it was opined that gambling involves the payment of a price for a chance to win a prize, and that a game of chance is one where the outcome is determined entirely or in part by luck or chance. On the other hand, a game of skill may involve some element of chance, but success in the game depends predominantly on the player’s skill.

Additionally, the Hon'ble Madras High Court in the case of Junglee Games India Private Limited & Anr. v. The State of Tamil Nadu, 2021 SCC OnLine Mad. 2767, recently held that gambling is characterized by a predominant element of chance that overshadows any skill involved. However, a game can be considered a game of skill if, generally, the application of skill can influence the outcome in such a way that better-skilled players are more likely to prevail. The presence of unpredictable elements does not disqualify an activity from being classified as a game of skill, provided that skill is the controlling factor in determining the outcome.

Can Games of Skill Be Undertaken as a Business Activity?

A game of skill, being distinct from gambling, is recognized as a legitimate business activity, and it enjoys protection under the Constitution of India.

In the landmark case of R.M.D. Chamarbaugwala v. Union of India, AIR 1957 SC 628, the Supreme Court of India held that competitions involving substantial skill are considered business activities. These activities are protected under Article 19(1)(g) of the Constitution of India, which guarantees the right to practice any profession or to carry on any occupation, trade, or business.

Furthermore, the Hon'ble High Court in the case of D. Krishna Kumar & Anr. V. State of Andhra Pradesh, 2002 (5) ALT 806, upheld that 'Rummy' is classified as a 'Game of Skill.' As such, prize competitions that involve a substantial degree of skill are also protected under Article 19(1)(g) of the Constitution.

There is no reasonable doubt that laws enacted by State Legislatures to control and regulate gambling do not apply to competitions where success is substantially dependent on skill.

Additionally, the Punjab & Haryana High Court, in Varun Gumber v. Union Territory of Chandigarh and others (Decided on April 18, 2017), ruled that conducting online fantasy leagues, being classified as 'games of skill,' is a legitimate business activity. Such activities, when conducted with proper registration and compliance with tax regulations, are protected under Article 19(1)(g) of the Constitution of India.

Is Rummy a Game of Skill Under Indian Laws?

Under various state laws, "Games of Skill" or "Mere Skill" are exempt from gambling regulations. The Supreme Court of India has conclusively settled that Rummy is not purely a game of chance; rather, it is predominantly a game of skill.

In competitions where success largely depends on skill, they are not categorized as "gambling." Even if there is an element of chance, a game that is predominantly based on skill is considered a "mere skill" game. This was reaffirmed in the case of State of Bombay v. RMD Chamarbaugwala, AIR 1957 SC 699.

The game of Rummy requires a certain level of skill, as players must memorize the fall of the cards and strategically hold and discard them to build a winning hand. Therefore, it cannot be said that Rummy is entirely a game of chance. The Hon'ble Supreme Court of India, in State of Andhra Pradesh v. K. Satyanarayana and Ors., AIR 1968 SC 825, held that Rummy is predominantly a game of skill while addressing the provisions of the Hyderabad Gambling Act, 1305.

Here's the rewritten content tailored for Royal Gaming League (RGL):

Is Fantasy Gaming Considered a Game of Skill Under Indian Law?

Fantasy games have been recognized as 'games of skill' under Indian law, requiring players to possess significant expertise, attention, judgment, and prior knowledge of the sport.

In the case of Varun Gumber v. Union Territory of Chandigarh and others (Decided on April 18, 2017), the Punjab & Haryana High Court ruled that the fantasy game in question was indeed a 'game of skill.' The Court emphasized that success in such games relies on the player's ability to apply knowledge and skill in selecting virtual teams. The appeal to this ruling was dismissed by the Supreme Court, affirming the lower court's decision without further deliberation.

Additionally, the Bombay High Court, in March 2019, delivered a judgment in Gurdeep Singh Sachar v. Union of India & Ors. (Cr. PIL St.22.19), where it addressed a fantasy league game involving the selection of virtual teams from real-world players. The Court concluded that such fantasy games do not constitute gambling, as they require users to apply a specific skill set, including practical knowledge of real-world players and strategic thinking.

Is It Legal to Play Skill-Based Games (Including Rummy and Fantasy Sports) for Cash on RGL?

According to various Supreme Court rulings and the Gaming Acts of India, the following principles apply:

• Games of skill are exempt from the penal provisions of most gaming/gambling laws in India. As such, games like Rummy do not fall under the category of betting or gambling, making them legal to play for cash.
• Skill-based games are recognized as legitimate business activities, which means they can be legally played for cash under Indian law.
• In the case of Rummy, the Supreme Court has consistently recognized that skill plays a dominant role over chance. Players demonstrate their abilities by strategically arranging cards and making decisions based on their understanding of the game.
• Similarly, fantasy games are also classified as 'games of skill' where players utilize their knowledge, judgment, and expertise in sports to create successful virtual teams.

The Supreme Court has clarified that 'gaming' in the context of Indian law refers to wagering or betting on games of chance, excluding games of skill. As a result, games of mere skill are exempt from the penal provisions of gaming acts, making it legal to play skill-based games on platforms like RGL.

However, it's important to note that players from Assam, Nagaland, Sikkim, Telangana, and Andhra Pradesh are not permitted to participate in these games on RGL. This restriction is due to specific state laws, such as the Assam Game and Betting Act, 1970, the Prevention of Gambling Act, the Nagaland Online Gaming Act, 2016, and the Sikkim On-line Gaming (Regulation) Act, 2008, which establish licensing requirements for certain skill games.

For further clarification on the legality of playing games on RGL, please feel free to contact us at info@rglgame.com.\