Game over for online gaming? How courts, state laws dealt with long-running skill vs chance debate

Therefore, determining whether the games offered by online gaming platforms are betting, gambling, or wagering would depend upon whether such games are games of skill or games of chance. Hence, it has become crucial to understand the connotation of these terms in the context of online gaming. In its judgment, the court questioned that if games of rummy and poker were considered games of skill when played physically, would they be considered games of chance just because they were being played online.

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31B has been inserted in the Central Goods and Services Tax Rules, 2017 (‘CGST Rules’). The said rule, inter alia, provides that the value of supply in the case of online money gaming, including the supply of actionable claims involved in online money gaming, shall be the total amount paid or deposited by the user with the supplier. The players win by correctly predicting whether the Dragon box or the Tiger box cards will feature the highest card. The main goal is to make the highest value five-card poker hand with the two cards dealt to the player & the five community cards dealt on the table.

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On the contrary , a game of chance requires no talent, and the winner is determined by luck or any other random component. Recently, the government of India has instructed states to take action against outdoor advertisements promoting online Betting and Gambling platforms. The regulator will also be responsible for checking the content of the games. Any content that violates the sovereignty and integrity of India will not be allowed. Some of the niches or subjects that this includes are violence, addiction, and sexual content. The Union Cabinet on Tuesday approved the Online Gaming Bill, which aims to regulate betting apps and put strict checks on gambling, sources said.

• Not just amendments on online games generally, high courts have also been faced with the question of whether certain specific online games are games of chance or skill.
• Some platforms were misused for fraud, money laundering, and worse—activities threatening national security.
• The main legislation on the subject is the Public Gambling Act of 1867, which forbids all games of chance other than lotteries and games of skill.
• It’s not a secret that Indians are fond of gambling activities like card games and sports betting.

Officials said the aim is to make the internet — and online gaming in particular — safe, accountable and responsible. The Central Consumer Protection Authority urges all stakeholders to adhere strictly to these guidelines and refrain from promoting or endorsing activities that are illegal under Indian law. But for many, it turned into a trap—addiction, financial losses, even family distress.

The Indian Law Commission (LCI) encouraged the government to legalise gambling in July 2018. By publishing a thorough report urging India to legalise gambling in order to generate much-needed tax revenue. Gambling in India is a state subject, allowing the state to enact state-specific regulations. However, a three-card game known as “flash” or “flush” was designated as a game of chance, falling under the ambit of gambling. It’s unnerving to observe how rapidly gambling issues have become prevalent in today’s fast-paced digital world enabling people to use a variety of online resources and play covertly. The drafted regulations are geared towards resolving the growing complaints of problematic gambling behaviors among minors.

In the majority of South America, it is also legal to gamble online at international websites, and several nations have even set up their own industry-specific regulatory frameworks. While the aforementioned jurisdictions have outlawed even skill-based games if they are played for cash, there are a number of states that have authorized them and have effective online gambling regulations in place. Different states have laws that distinguish between games of skill and games of chance. Some states forbid playing either a skill-based or plinko chance-based game for money.

Both states see this as a solution to the rising gambling problems within their territories. Between 2022 and February 2025, the government blocked over 1,400 betting and gambling websites and apps. It is also relevant to note that recently, the DPIIT proposed 100% FDI in the online real-money gaming sector except gambling and betting.