{"id":18541,"date":"2023-11-04T16:12:43","date_gmt":"2023-11-04T10:42:43","guid":{"rendered":"https:\/\/www.nextias.com\/current_affairs\/?p=18541"},"modified":"2023-11-04T16:12:46","modified_gmt":"2023-11-04T10:42:46","slug":"legality-of-fantasy-sports-games-in-india","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/editorial-analysis\/04-11-2023\/legality-of-fantasy-sports-games-in-india","title":{"rendered":"Legality of Fantasy Sports Games in India"},"content":{"rendered":"\n<p><strong>Syllabus: GS2\/ Government Policies &amp; Interventions<\/strong><\/p>\n\n\n\n<p><strong>In Context<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>In India, fantasy gaming is causing addiction and financial damage.<\/li>\n<\/ul>\n\n\n\n<p><strong>Gaming in India<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>India mainly puts the games into two broad categories to differentiate them.\n<ul class=\"wp-block-list\">\n<li>The two categories are that the game is either a Game of Chance or a Game of Skill.<\/li>\n\n\n\n<li><strong>Game of chance (Gambling): <\/strong>Games of chance are all those games that are played randomly. These games are based on luck. A person can play these games without prior knowledge or understanding. For instance, dice games, picking a number, etc. Such games are considered illegal in India.<\/li>\n\n\n\n<li><strong>Game of skill (Gaming):<\/strong> Games of skill are all those games that are played based on a person\u2019s prior knowledge or experience of the game. A person will require skills such as analytical decision-making, logical thinking, capability, etc. Some games might also require some initial training to win. Such games are considered legal by most of the Indian states.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<p><strong>About Fantasy gaming<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>About:<\/strong>\n<ul class=\"wp-block-list\">\n<li>Fantasy gaming apps allow users to deposit money in-app to build a virtual team or teams of players, and pit them against others.&nbsp;<\/li>\n\n\n\n<li>Users may win different amounts, depending on players\u2019 actual on-ground performance.&nbsp;<\/li>\n\n\n\n<li>Those who top the leaderboard win the maximum cash, with a few others also reaping in some benefit.&nbsp;<\/li>\n\n\n\n<li>Many simply lose their money; some get back just what they had put in.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Legality:<\/strong>\n<ul class=\"wp-block-list\">\n<li>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 analyze, think, and develop techniques to win is a legal activity.<\/li>\n\n\n\n<li>The Supreme Court in its judgment has upheld the <strong>legality of fantasy sports as it requires considerable skill and judgment.<\/strong><\/li>\n\n\n\n<li>Fantasy sports are a legitimate business in India and do not fall under the Public Gambling Act, of 1867.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Increasing user participation:<\/strong>\n<ul class=\"wp-block-list\">\n<li>The KPMG India report, <strong>the Business of Fantasy Sports<\/strong>: It noted that the number of users participating in online fantasy sports in India has<strong> grown at a compounded annual growth rate of 212%<\/strong>,<strong> increasing to 90 million users<\/strong> in December 2019, from 2 million users in June 2016.&nbsp;<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Drivers of growth:<\/strong>\n<ul class=\"wp-block-list\">\n<li><strong>Low data costs<\/strong> and<strong> increasing smartphone penetration<\/strong> have played an essential role in pushing the accessibility of fantasy sports.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<p><strong>Significance of the Online Fantasy Sports Platforms (OFSPs)<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>India\u2019s potential as a global hub for fantasy sports:<\/strong>\n<ul class=\"wp-block-list\">\n<li>With a large market of Indian sports fans and availability of digital infrastructure and engineering talent in India, India can be an engine for<strong> growth and innovation <\/strong>in fantasy sports across the world and become a global hub for fantasy sports and increase its influence in international sports development and commerce.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Generation of opportunities:<\/strong>\n<ul class=\"wp-block-list\">\n<li>Fantasy sports benefit a number of stakeholders while also generating direct and indirect employment opportunities, driving investment, innovation in technology, entertainment and sports development.&nbsp;<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Contributing to the Country\u2019s economy:<\/strong>\n<ul class=\"wp-block-list\">\n<li>Considering its potential contribution to the Indian economy, and India\u2019s emergence as a hub for OFSPs, the fantasy sports industry has the potential to be a significant driver of economic and technological growth in India.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<p><strong>Concerns &amp; challenges of Online Gaming<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Financial risks:<\/strong>\n<ul class=\"wp-block-list\">\n<li>Much like mutual funds and stock market investment firms do with all advertising, companies in the real-money gaming app space declare the cash people put in as \u201cfinancially risky\u201d.&nbsp;<\/li>\n\n\n\n<li>States have been worried about the rise in people landing in financial trouble, and worse, taking their lives from the trauma of losing lakhs of rupees when they play real-money games online.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Behavioural addiction and Health concerns :<\/strong>\n<ul class=\"wp-block-list\">\n<li>The World Health Organization, on May 25, 2019, officially <strong>voted to include \u2018gaming disorder\u2019 as a behavioural addiction<\/strong> under the International Classification of Diseases.&nbsp;<\/li>\n\n\n\n<li>Often online gamers face the <strong>\u2018Passivity Phenomena\u2019<\/strong> where their <strong>behaviour is controlled by external factors<\/strong> and if they are stopped from playing these online games, they become aggressive.<\/li>\n\n\n\n<li>Severe cases of addiction to online gaming are pushing many into a debt trap and, as a result, to suicides as well.&nbsp;<\/li>\n\n\n\n<li>As per the data published in the<strong> Indian Journal of Community Medicine and Public Health 2020<\/strong>, about 3.5 per cent Indian adolescents suffer from Internet Gaming Disorder (IGD).&nbsp;<\/li>\n\n\n\n<li>The rate is<strong> 0.5 percent higher than the global average<\/strong>.&nbsp;<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Absence of framework:<\/strong>\n<ul class=\"wp-block-list\">\n<li>There is currently no regulatory framework to govern various aspects of online gaming companies such as:\n<ul class=\"wp-block-list\">\n<li>Having a grievance redressal mechanism,&nbsp;<\/li>\n\n\n\n<li>Implementing player protection measures,&nbsp;<\/li>\n\n\n\n<li>Protection of data and intellectual property rights, and&nbsp;<\/li>\n\n\n\n<li>Prohibiting misleading advertisements.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<p><strong>Suggestions &amp; Way ahead<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Awareness Generation:<\/strong>\n<ul class=\"wp-block-list\">\n<li>Creating <strong>awareness on addiction and financial risks <\/strong>due to online gaming particularly amongst adolescents and professionals is one of the probable solutions to the social problem of gaming addiction.<\/li>\n\n\n\n<li>Parents and teachers must also participate by helping adolescents set healthy recreational limits and channelise the potential of India\u2019s youth in the right direction.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Licensing and Regulation:<\/strong>\n<ul class=\"wp-block-list\">\n<li>Regulation of online games may be a better and proportionate solution <strong>rather than an outright ban.<\/strong><\/li>\n\n\n\n<li>One could look at <strong>licensing and regulating<\/strong> the industry with various checks and balances such as,\n<ul class=\"wp-block-list\">\n<li><strong>diligent KYC and anti-money laundering processes<\/strong>,&nbsp;<\/li>\n\n\n\n<li><strong>barring minors <\/strong>from accessing real money games,&nbsp;<\/li>\n\n\n\n<li>placing <strong>weekly or monthly limits<\/strong> on the money that can be staked or time that can be spent,&nbsp;<\/li>\n\n\n\n<li><strong>counselling<\/strong> for addictive players and<strong> allowing self-exclusion<\/strong> of such players etc.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Multi sectoral participation:&nbsp;<\/strong>\n<ul class=\"wp-block-list\">\n<li>Realising the <strong>potential of the online gaming sector<\/strong>, the State and the Union Governments should work together in consultation with industry stakeholders to draw out detailed guidelines.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<p><strong>Mains Practise Question&nbsp;<\/strong><\/p>\n\n\n\n<p><strong>[Q] <\/strong>What is the significance &amp; potential of Online Fantasy Sports Platforms (OFSPs) in India? Examine the challenges posed by these Fantasy games.\u00a0<\/p>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/www.nextias.com\/ca\/wp-content\/uploads\/2023\/11\/4_11_Editorial_Legality-of-Fantasy-Sports-Games-in-India.pdf\">Download PDF<\/a><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Syllabus: GS2\/ Government Policies &amp; Interventions In Context Gaming in India About Fantasy gaming Significance of the Online Fantasy Sports Platforms (OFSPs) Concerns &amp; challenges of Online Gaming Suggestions &amp; Way ahead Mains Practise Question&nbsp; [Q] What is the significance &amp; potential of Online Fantasy Sports Platforms (OFSPs) in India? Examine the challenges posed by [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[22],"tags":[],"class_list":["post-18541","post","type-post","status-publish","format-standard","hentry","category-editorial-analysis"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/18541","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=18541"}],"version-history":[{"count":2,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/18541\/revisions"}],"predecessor-version":[{"id":18545,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/18541\/revisions\/18545"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=18541"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=18541"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=18541"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}