• sportzyverse
• Fantasy Tips
• 01/20/2024
• 0 Comments

If you ever bumped into questions such as “Is Fantasy gaming legal in India?”, or “What are the Fantasy sports Regulations in India?”. Worry not! The article serves all the answers. 

Legal Status of Fantasy Sports in India:

According to section 12 of the Public Gambling Act, 1867  “The game of mere skill” does not fall under the ambit of gambling. Taking it into consideration, the honorable Supreme Court in the year 2021 stated that games that require considerable skill and judgment are considered legal and are being protected under Article 19(1)(g) of the Indian Constitution. 

Thus Fantasy gaming in India has been qualified as a “Game of Skill” instead of a “Game of Chance”. Established in 2017, The Federation of Indian Fantasy Sports (FIFS) is the governing body that regulates all the Fantasy sports platforms. It works closely with operators, industry stakeholders, and government bodies to devise best practices and safeguard the integrity of the fantasy sports ecosystem.

However, it’s important to understand that regulations differ from one state to another. Telangana, Andhra Pradesh, Assam, Odisha, Sikkim, Nagaland, and Tamil Nadu have put a complete ban on these types of online games. Moreover, the Karnataka government has banned all forms of online gaming involving the transfer of money. 

Set of Rules by Ministry of Electronics and IT (MeitY) 

According to the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) rules, 2021; 

• Online gaming platforms must register themselves with a Self-Regulatory Body (SRB) designated by the Government having a Board of Directors with five members from diverse fields of Online gaming, Public policy, IT, Psychology, and Medicine.
• Online gaming companies must engage in comprehensive due diligence practices, which involve verifying user identities through KYC, providing clear procedures for money withdrawal and refunding, and ensuring fair distribution of winnings.
• Fantasy gaming companies must possess a random number generation certificate used for card games to ensure that game outputs are statistically random and unpredictable. Thus barred from engaging in betting on the outcome of games. 
• Companies must appoint a Compliance officer, a Nodal officer, and a Grievance officer. 

Tax on Fantasy Sports in India:

The Goods and Services Tax Council with effect from July 11, 2023, has levied a uniform 28% tax on full face value for online gaming, casino, and horse racing. Earlier it was to be 5%. The move is an attempt by the Union government to discourage such activities. 

To read an article about, A complete guide on fantasy gaming click here.