Placing stakes on a game's unknown outcome is wagering irrespective of whether the game is a game of skill or chance, Additional Solicitor General N. Venkataraman told PTI yesterday (accessed via The Print). The test of "skill or chance pales into insignificance," he added. A reminder: Games of chance (or gambling games) are regulated by states, and have largely been prohibited by them. Games of skill lie outside of states' jurisdiction. State governments determine the legality of games in their jurisdiction by checking whether they are games of skill or chance under their respective laws. Why it matters: India's recently notified online gaming rules do not distinguish between games of skill and chance—instead, ban games that involve wagering. Point to note: what wagering constitutes isn't defined in the rules. However, games like poker, rummy, and daily fantasy sports have been upheld as games of skill by courts, and are legal to operate in India barring the states that ban them. So, critics remain concerned that these games of skill may be determined to be wagering games under the rules. Paying to play is legal: Venkataraman clarified that paying a fee to participate in a tournament would be legal. But, it is wagering if money is pledged against the uncertain outcome of a game, Venkataraman argued, citing the examples of Teen Patti and Cricket. "The former is a game of chance and the latter is a game of skill," he noted. "In both kinds, the outcome of the game for the player…
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Placing Stakes On A Game’s Unknown Outcome is Wagering Irrespective of Format, Says Senior Govt Lawyer
N. Venkataraman argued that paying to participate in a game would be legal, but betting on the uncertain outcome of a game would be illegal.
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