Clearing the Confusion: Is fantasy cricket apps legal in India?

Fantasy cricket has gained immense popularity in recent years, especially in cricket-crazy nations like India. With the rise of smartphones and easy access to the internet, fantasy cricket apps have become a favorite pastime for millions of Indian cricket fans. However, the legality of these apps has been a subject of debate, leading to confusion among users. In this article, we delve into the legal status of fantasy cricket apps in India. In this article we will answer the question on Is fantasy cricket apps legal in India?

Understanding Fantasy Cricket

Fantasy cricket is an online game where participants create virtual teams by selecting real-life cricketers. The performance of these chosen players in actual matches determines the points and rewards earned by the participants. The goal is to score more points than other users and climb up the leaderboard to win prizes.

It is logical to expect millions of fans in a country where cricket is more of a religion than a sport. As a result, fantasy cricket has thrived in India. If you’re wondering how this notion has done so successfully in India, the answer is simple: Indians love nothing more passionately than cricket. You’ve probably noticed that every family has a cricket pundit who knows every single fact and detail about a player. These Indian Fantasy leagues have reached out to such people’s hearts and helped them make money by applying their skills. All of these small-scale commentators go on to win various fantasy cricket leagues. But Is fantasy cricket apps legal in India?

What exactly is a skill-based game?

Before we get farther into the inquiry into whether fantasy sports are legal in India, it is critical to grasp what a skill-based game is. Skill-based games include all games that involve an understanding of the game, analysis, reasoning, and talent to succeed. Fantasy cricket gaming necessitates knowledge of the game, team selection, player performance analysis, external factor study, and much more.

Legal Status of Fantasy Cricket Apps

The legality of fantasy cricket apps in India depends on the interpretation of relevant laws, primarily the Public Gambling Act, 1867. This archaic law prohibits gambling activities but makes exceptions for games of skill. The distinction between games of skill and games of chance is crucial to determine the legality of fantasy cricket.

Games of Skill vs. Games of Chance

The Indian judiciary has consistently held that games requiring a substantial degree of skill fall outside the purview of gambling and are considered legal. Fantasy cricket platforms argue that their games involve skill as participants need to analyze players’ performance, pitch conditions, team composition, and make strategic decisions while creating their teams.

In landmark judgments, such as the 1968 R.M.D. Chamarbaugwala case and the 1996 State of Andhra Pradesh v. K. Satyanarayana case, the Supreme Court of India recognized the distinction between games of skill and games of chance. The Court held that games involving a predominant element of skill are not gambling and do not violate the Public Gambling Act, 1867.

The Legality of Fantasy Cricket Apps in India

“Is it allowed in India to use fantasy cricket apps?” is one question that practically everyone has since India as a country is entirely not in favour of betting, with it even being illegal. This is where you must understand that betting on a sport is not the same as playing Fantasy cricket. In fantasy cricket, you basically use your knowledge to forecast the performances of real-life players and earn money if your predictions are correct.

To understand the legality of fantasy cricket apps, it is essential to examine the legal framework governing online gaming and gambling in the country. In India, laws pertaining to gambling are primarily governed by the Public Gambling Act, 1867. The Act prohibits the operation of gambling houses and the facilitation of gambling activities in physical spaces. However, the Act does not explicitly address online gambling or fantasy sports.

In 2017, the Hon’ble Supreme Court of India rendered a landmark judgment in the case of K.R. Lakshmanan v. State of Tamil Nadu, stating that games involving substantial skills are not considered gambling and are protected under the Constitution of India. The court further clarified that games involving a substantial degree of skill fall outside the ambit of gambling legislation.

This judgment laid the foundation for the legality of fantasy sports in India, including fantasy cricket. Fantasy cricket is considered a game of skill rather than a game of chance, as users rely on their knowledge of players, statistics, and strategies to create their teams. It is not merely dependent on luck or chance.

To provide additional clarity, several states in India have passed specific legislation or issued clarifications regarding the legality of fantasy sports. For instance, the High Courts of Punjab and Haryana, and later the High Court of Rajasthan, upheld the legality of fantasy sports and observed that these platforms involve the skill of participants. Some states have also enacted laws to regulate fantasy sports platforms and ensure fair play and consumer protection.

However, it is important to note that the legal status of fantasy sports in India may vary from state to state. While some states have explicitly legalized and regulated these platforms, others may not have specific laws addressing them. In such cases, the legality of fantasy cricket apps is usually determined based on the skill vs. chance test established by judicial precedents.

Another aspect to consider is the presence of real money involvement in fantasy cricket apps. Most fantasy cricket platforms allow users to participate in paid contests, where they can win cash prizes based on the performance of their virtual teams. The legality of such paid contests has been a subject of debate and interpretation.

The legality of real money involvement depends on whether the activity is considered gambling or a game of skill. If the platform can establish that skill predominates over chance, it is likely to be considered legal. However, platforms must also comply with relevant tax regulations, anti-money laundering laws, and ensure responsible gaming practices to maintain legality and protect users.

Regulatory Framework regarding legality of Fantasy Cricket Apps

The legality of fantasy cricket apps is further reinforced by specific state laws and guidelines issued by regulatory bodies. Various states in India, including Karnataka, Nagaland, and West Bengal, have enacted legislation or issued notifications that expressly permit fantasy sports platforms to operate within their jurisdictions.

The central regulatory body for overseeing online gaming and gambling in India is the All-India Gaming Federation (AIGF). The AIGF works towards ensuring responsible gaming practices, preventing fraud, and promoting fair play in the industry.

Consumer Protection and Responsible Gaming

To protect consumers and maintain the integrity of fantasy cricket platforms, several guidelines and safeguards have been implemented. Fantasy cricket apps are required to adhere to strict regulations, including age verification processes, know-your-customer (KYC) norms, and limitations on the maximum number of entries per contest. These measures are aimed at preventing minors from participating and promoting responsible gaming practices among users.

Way Forward

Fantasy cricket apps have gained widespread acceptance and legality in India due to their classification as games of skill and the recognition of their constitutional protection. The popularity of these platforms has been further supported by state legislations and guidelines from regulatory bodies. While the legality of fantasy cricket apps is well-established, it is essential for users to exercise responsible gaming practices and ensure they comply with the terms and conditions set forth by the platforms they engage with.

As with any online activity involving real money, it is advisable for users to familiarize themselves with the legal landscape and regulations specific to their state of residence. By doing so, users can enjoy the immersive experience of fantasy cricket while staying within the bounds of the law and ensuring a safe and enjoyable gaming experience.

Connect to the experts of Legal Window in case you need assistance in clearing your doubts regarding Legality of Fantasy Cricket Apps.