“While there is enough case law to argue that apps like Dream11 and MPL are games of skill, Karnataka`s law is unique in that it does not directly prohibit these apps, but only prohibits currency betting from the perspective that it poses a financial risk to the person using these apps,” the person said. requesting anonymity. PFG reserves the right, at your expense, to assume the exclusive defense and control of any matter for which you are required to indemnify PFG or its affiliates, including settlement rights, and you agree to cooperate with us in the defense and settlement of such claims. PFG will use reasonable efforts to notify you of any claim, suit or proceeding brought by a third party subject to the above indemnification as soon as you become aware of it. This paragraph shall survive termination of this Agreement. It is generally accepted that no game is just a game of skill. Almost all games contain an element, albeit to a minimal extent, of chance. In such a situation, Indian courts have introduced the “dominant factor test” or “predominance test” required to determine whether “jurisdiction” or “chance” plays a predominant role in determining the outcome of the game. It can also be seen that Indian courts have removed from the scope of regulatory and criminal provisions games that are primarily skill-based.
The legality of gambling that involves online payments is not yet clear. Indeed, the Assam Game and Betting Act, 1970 (“GTC”) prohibits all forms of betting or betting on any game or sport, with the exception of horse racing and lotteries. In addition, there is also no exception or permission for “games of skill” and online fantasy sports platforms do not work for Assam residents. Termination; Breach of Agreement – You agree that PFG, in its sole discretion, for any reason and without penalty, may suspend or terminate your account (or any part thereof) or your use of the First Games Offerings / First Games Platform and your account, user profile or recipient profile, including your SSOID, at any time. We may also, in our sole discretion and at any time, discontinue access to all or part of the Early Game Offerings with or without notice. You agree that any termination of your access to the First Games/First Games Platform Offerings or any account you may have may occur without notice, and you agree that PFG or its affiliates shall not be liable to you or any third party for any such termination or discontinuance. Any suspicion of fraudulent, abusive or illegal activity may be referred to the competent law enforcement authorities. These remedies are in addition to any other remedies available to PFG or its affiliates at law or in equity. Upon termination for any reason, you agree to immediately cease using the First Games Offerings/First Games Platform. However, a policy expert who has been following India`s online gambling ecosystem for years noted that the karnaraka ban does not include games of skill, but only their gambling component, presenting a unique challenge for the industry.
However, Section 7 of the Nagaland Act requires the licensing of companies incorporated in India that wish to offer such games in online media and generate revenue for them. Furthermore, the company should have no interest in gambling activities in India or abroad. This means that such an establishment should be limited to carrying out its commercial activity of online gambling only within the State – which is in some respects a restrictive provision. The Tamil Nadu Gambling and Police (Amendment) Act 2021 (“TNGPLAA”) expanded the existing law, namely the Tamil Nadu Gambling Act 1930, and included online gaming platforms within its scope of restrictions – but always with the exception of games of skill as opposed to betting involving chance or sheer luck. Thus, online fantasy sports platforms continue to operate in the territory of Tamil Nadu. In response to a breach of these Terms of Access or any other agreement applicable to the First Games Offerings you access, or we believe that your use of the First Games Offerings makes Paytm First Games less secure for other users or for illegal or abusive use of PFG`s First Games Offerings, content, rights, products or intellectual property; We may issue you a warning, suspend your account, delete, revoke or selectively enter account- and/or device-level permissions, immediately terminate any account you have created, and/or temporarily or permanently prohibit your device and/or computer from accessing all First Games Offerings or certain First Games Offerings. Upon such termination, you will lose your username and login, no refund will be given, no claims will be credited or converted to you for cash or other forms of refund, and you will no longer have access to your account or the permissions associated with your account. Bonuses held in your bonus account will be returned to us and you have no rights or interests in that bonus account. The Orissa Gambling Prevention Act of 1955 (“TOPGA”) prohibits all forms of gambling for cash and betting or betting where a “person intentionally exposes money or things of value to the risk or threat of loss by chance,” with the exception of “lotteries.” Online fantasy sports platforms are also not allowed in Odisha. Although it is only one state, it is undoubtedly a blow to platforms such as MPL and Dream11, which have spent years turning to several Indian courts to establish jurisdiction that their platforms only offer games of skill and no betting. The Sikkim Online Gambling Regulation Act 2008 (“SOGRA”) requires a licence for an online gaming platform, including those based on “chance”.
However, the licensing provision stipulates that these games must be played in the State of Sikkim and offered on the premises of gaming cafes in the State of Sikkim via intranet gaming terminals. This effectively excludes any platform that wants to operate from outside Sikkim, even though such a platform would offer gambling skillfully. Brand Notice: PFG, First Games Platform and/or First Games Platform, First Games Website Content, First Games Offerings and Logo, Games are trademarks or registered trademarks of PFG in India and elsewhere. All other company and product names mentioned herein may be trademarks of their respective owners and may only be used with permission. All rights not expressly granted herein are reserved. Therefore, based on the judgment of the Court, it can be said that fantastic games are legitimate, since they have a predominant element of skill, which involves the selection of players on the basis of their references and achievements – in particular. The Honorable Court`s decision has also led to the rapid development and expansion of apps and websites featuring eSports or fantasy games. Although gambling in India is an illegal activity, most Indian states, with the exception of the above, clearly recognize the distinction between “skill gambling” and “gambling” according to the decision of various courts in India. In this way, these platforms receive a form of legitimacy. In addition, the license fee for the first three years per game is INR 10 lakhs (about USD 13,334) or INR 25 lakhs (about USD 33,334) for a bunch of games per year.
For the next two years, the fee is INR 20 lakh (about USD 26,667) or INR 50 lakh (about USD 66,667) for a bunch of games per year. Licensees are also required to pay an amount of 0.5% of gross revenue as royalties as well as other policies to comply with KYC standards, foreign filings, etc. As for fantasy sports games and taking “Dream11” as an example, it is a game in which the user has to assemble his own fantasy teams from the list of players who are supposed to play live on a given day. The High Court of Punjab and Haryana considered whether the format (proposed by “Dream11”) included jurisdiction as the dominant element. A person who lost money during the game has filed a lawsuit in the High Court of Punjab and Haryana, claiming that the format of “Dream11” is considered a “game” and therefore banned. The Court of Honour relied on previous decisions in this case and concluded that playing fantasy sports games requires the same skill, judgment and discretion as in the case of horse racing. An appeal to the Honourable Supreme Court was dismissed. Support: Subject to the other provisions of the Terms of Use, PFG will attempt to assist you with any questions or problems you may have with the First Games Platform or your purchases through the First Games Platform.