“Some [fantasy] players may know more about statistics, rules of the game, which players are injured, effects of weather, and a host of other factors that make them better at picking players—that's the skill in fantasy sports. What I can give them is a quantitative analysis of where [fantasy sports] sit on the skill/luck spectrum. It's mostly skill, but there's always a little bit of luck" says Anette "Peko" Hosoi, associate dean of engineering at MIT.
“GAME OF SKILL” vs “GAME OF CHANCE”
It might look like a thin line between the games that require skill and the ones that are purely based on luck. But if we analyze it from the ground up, we can clearly differentiate the ones that require skill and the ones that involve luck. For example, we can categorize games like Fantasy sports based engagement sites under the skill based category and the games like Casino, Roulette and Lotteries come under the game of chance and luck category.
Other fantasy sports such as fantasy baseball, fantasy basketball, and fantasy hockey also appear to be skill based —considerably more so than activities based on pure chance, such as coin-flipping.
Chance based types such as the Casino, lottery and Roulette are played and the outcome of these games are also fully or majorly focused on Luck, probability etc. Fantasy sports would not be considered a form of gambling as it’s proven to be more of a contest of skill.
People are confused with the terms games based on skills and chance. Gambling and Betting already comes under the chance based games. While playing the lottery, you will not be able to use your skill by any means as it is purely based on luck and probability of getting the right draw. For example, coin toss is also a game of choice and luck and all we can do is predict.
“The winnings from games of skill attract 18 per cent Goods and Services Tax (GST). On the other hand, winnings from games of chance mandate paying 28 per cent GST”.
To explain these terms in simple words, a game of skill is one in which the outcome is determined mainly by mental or physical skill, rather than chance. While a game of chance may have some skill element to it, chance generally plays a greater role in determining its outcome. One would engage in a ‘game of chance’ by putting a stake (usually money) on something with an intent to win a bigger sum, which can be considered ‘gambling’ and that’s the reason for it being considered illegal.
| “GAMES OF SKILL” - TRAITS | “GAMES OF CHANCE” - TRAITS |
|---|---|
| Will require proper strategies and tactics while playing. | “Chance” partly determines the outcome of the exchange. |
| Might require physical coordination or strength. | Doesn’t require physical coordination or strength. |
| “Skill based” is totally legal. | “Chance” aka “Luck based” such as gambling is illegal in many regions. |
| Rewards are offered by the respective engagement platform upon winning. | Winner gains at the expense of the losers. |
Also, when it comes to games of chance, it didn’t appear out of nowhere. Historical facts prove that chance-based games have existed long before skill-based ones. Animal bones, for example, were used in games of chance as far back as 3600 BC. Six-sided dice games have also been traced to the early 2000 BC. So, this is how the concepts of game of skill and game of chance clash against each other. On the whole, people still assume fantasy sports to be a game of chance and consider it as illegal. But it is legal and it’s a skill based game. Let’s break the hoax today.
FANTASY SPORTS ISN’T ILLEGAL - BREAKING THE HOAX
What do you think about fantasy sports or apps like My11 Circle and Dream11? With such a high risk of losing money, why are these platforms not illegal? Let me answer your question. The answer is, these ones are purely based on skill and don't depend on luck or chance.
People usually assume it to be illegal and consider them to be something similar to other apps like Rummy circle and other gambling platforms. But in reality, they and gambling based games like Rummy circle are not the same.
Gambling-oriented games are totally based on luck and chance, but when it comes to fantasy sports, it is purely a skill-based game with a little demand for luck. Skill based games are considered to be legal, whereas luck based ones are totally illegal in India and also in many other countries.
The hoax has been formed, but reality is different. One should be able to differentiate between both types of games and have a clear understanding on which is legal and which is not. Fantasy sports are totally legal and not illegal. The best you can hope for is that in the near future, if someone asks you whether it is legal or not, you will be able to answer confidently. With the help of official laws, let us explain why it is legal and why it doesn’t fall in the latter category.
LAWS SUPPORTING THE CLAIM THAT IS "LEGAL"
According to the law, the term ‘Gambling’ is understood as the ‘act of wagering or betting for money’s worth’. Section 12 of the Public Gambling Act provides that “game of mere skill” does not fall under the ambit of gambling. This Law supports the claim that fantasy sports is legal as it is a skill based game.
The 276th Law Commission Report recommends that skill – based games may be exempted from the ambit of gambling. “Fantasy sports” survives again.
As per Article 19(1)(g) of the Indian Constitution, a game of skill where players must use their expertise, talent, knowledge, and strategies to analyse, think, and develop techniques to win is a legal activity. Winning is possible through judgment and analysis, and not just luck. As a result, fantasy cricket comes under the ambit of a game of skill where players need to use their expertise and knowledge of sports to create dream teams.
Dream 11 was ruled out to be a legal game by the Rajasthan HIgh court in 2020, as it didn’t involve betting and gambling. The Supreme court came to the same conclusion.
“The ones which require skill are excluded from the definition of most gambling legislations and therefore are legal to play” - Federation of Indian Fantasy Sports (FIFS)
The Professional and Amateur Sports Protection Act (PASPA), enacted in 1992 in the United States, introduced restrictions on sports betting in the majority of states. Nonetheless, PASPA included a specific provision that granted fantasy sports an exemption from its prohibitions, thereby affirming their legal status. This exemption serves as evidence of the legal acknowledgment and endorsement of fantasy sports activities. It underscores the distinct recognition given to fantasy sports as a legitimate form of entertainment within the realm of sports, further reinforcing their legality.
Courts have played a significant role in solidifying the legality of fantasy sports through landmark decisions. Notably, in the case of Humphrey v. Viacom, the court held that fantasy sports constituted games of skill rather than illegal gambling. Several subsequent court rulings have upheld this distinction, further strengthening the legal foundation of fantasy sports.
8 Key Factors That Determine Your Fantasy Sports App Development Cost
Security Measures in Fantasy Sports Application Development: Safeguarding User Data 
Custom Fantasy Cricket App - A Detailed Guide
