Introduction
Gone are the days when children, teenagers, and even adults used to go to fields for playing various games for recreational purposes with the advent of technology in the 21st century a new niche area of games has surfaced which is known as “Video Games” which definition is “A game which is played virtually through various technological gadgets and with manipulation of video and images through display is known as video games.” Even recent data by Grand View Research entails that “the global video game market was valued at 195.65 billion USD in 2021 and is expected to expand at the compound annual growth rate of 12.9 percent from 2022 to 2030”. This shows that the growth of video games will rise and not fall and along with this rise new challenges will rise in various sectors. But in this particular blog, we will go through the challenges in the legal sector and devise some solutions along with it and also discuss gaming laws in India.
Keywords: Rise of video game sector, Rise of new challenges, Gaming laws in India, Solutions regarding the challenges.
Current Laws Regarding Gaming and Gambling in India
The primary law which deals with the field of gaming and gambling in India is the “Public Gambling Act, of 1867” which is a colonial-era law that creates a lot of confusion in today’s time due to its overlapping features in its various provisions. Under this law, gaming was under the union list but after the adoption of our constitution in 1950, it became a part of the state list under “entry 34” it is also vital to remember that under this act only those games are legal and valid which falls under the category of “games of skill” and not “games of chance”. In India, online gaming is not restricted. Therefore, unless and until games are not prohibited by the states under state gaming laws, online gaming is not prohibited. But in the scene of online games where real stakes and money is involved, there is a prohibition. States like Tamil Nadu, Odisha, Assam, Telangana, West Bengal, etc.
Rule of Game of Skill and Game of Chance
The rule of the game of skill entails that “the player who wins the competition with his skill regarding the subject matter of the game through this knowledge, practice, and strategies” they don’t fall under prohibitions as the winners are getting the prize through their own mettle without any luck involved. Whereas, The game of chance entails that “the player has not much role in his/her success to win the game as the game is more dependent on the variables of luck and unpredictability” and they fall under prohibitions from many states. The simple way to differentiate between the game falls under skill or chance is to look at who the opposing player is as if it’s a “casino” then the game falls under the game of chance whereas if it’s against a live “human opponent” then its fall under the game of skill. But the caveat that is happening nowadays due to technology is it is getting really difficult to classify the so-called video games under chance or skill. Games like Ludo and Rummy are trying to prove themselves as a game of skills to increase their profits. One solution to the dilemma can be referring to the various guidelines provided by the Indian Judiciary on these matters.
Landmark cases on Online Gaming and Gambling
- Manoranjithan Manamyil Mandram v. State of Tamil Nadu (2005): In this case, the court opined the fact “the game will be considered as a game of skill or a game of chance basis on the facts and circumstances of each case.”
- State of Andhra Pradesh v. K. Satyanarayana (1968): In this case, the court “interpreted the difference between a two-card game known as ‘Teen Patti’, and ‘Rummy’ and held that ‘Teen patti’ was a game of pure chance and ‘Rummy’ as required a certain amount of skill because one has to know the fall of the cards and the building up of Rummy requires considerable skill in determining which cards to keep and which one to discard”.
- Indian Poker Association (IPA) v. State of Karnataka (2013): In this case, the court opined that “Poker is a game of skill and not a game of chance and requires no license for conducting poker games as long as they follow the guidelines of the law enacted by the state.”
- Varun Gumber v. Union Territory of Chandigarh (2017): In this case, the court held that “Games such as horse, boat, foot racing, football, baseball, chess, cricket, and golf are games of skill which also includes the virtual version of this game that falls under fantasy games. A fantasy sports game such as “Dream 11” requires the player’s knowledge, judgment, and attention to detail. Hence, these types of games fall under games of skill and not games of chance”.
- R. M. D. Chamarbaugwalla vs The Union Of India(1957): In this case “ the petitioners were running advertisements and prize tournaments in various Indian states which challenged the ‘The Prize Competitions Act of 1955’ as it only prohibits not only gambling competitions but also those competitions which depend on the game of skill. The court opined that prized tournaments that involve a certain amount of skill will not fall under gambling”.
Contemporary Challenges in Current Gaming Laws
One of the most challenging aspects of current gaming laws is uniformity. The lack of a central law is creating many difficulties in the gaming sector, and along with it different states have different views and laws regarding online games. According to World Health Organisation(WHO) International Classification of Diseases, online games are very addictive, socially compulsive, and can cause life-threatening impairs in our bodies. So not only gaming regulation is required from a legal perspective but as well as for sound health and mind. Recent news has been also heard that terrorists are getting funds under the ruse of gaming revenues and tax evasion under betting and this happening due to a lack of centralized laws in India. Vulnerable groups such as poor, marginalized women and children can also be easily exploited under betting and various games to generate profits among those who are taking advantage of these loopholes in the gaming laws of India.
Solutions Regarding Present Challenges in Gaming Laws of India
The need of the hour for combating these challenges is devising various discussions at national and international level forums. It would be fair to say that before this issue become a social menace, a reformed gaming law is need to be adopted without any delay. Many researchers have already pointed out the reasonable need to phase out the colonial-era legislation as it does not suit the need of the current digitalized world. Hence, a new law provides clarity regarding online gaming as well as a comprehensive legal framework to meet societal expectations is required. It is also crucial to note that an outright ban on illegal gaming as well as online gaming and betting is impossible as it is not feasible in nature and such a process will be counterintuitive as the gaming sector hold a great
opportunity to provide job opportunities, economic growth through the rise in GDP and we all know India desperately need that opportunity. Hence, my final suggestion would be to formulate a law and suitable protections that will regulate online gaming, betting, and gambling in India without hampering the growth of the video games sector.
Conclusion
As we continue living in the era of technology new challenges will keep appearing and we all need to be prepared for it as the gaming sector will continue to rise every year which consists of continuous changes in the online gaming sector one day it might happen virtual games completely replace the physical ones and to combat these challenges updated laws as well as involving all stakeholders and forming consensus among them will be the most challenging but it’s non-negotiable hence new methods have to researched to make them concur with each other. Clear and organized laws are clearly needed in the Indian online gaming market which will also encourage due diligence, good governance, and public order this process will not only lead to the efficient working of various games but will launch India as a global market for future gaming companies and bring in huge profits for the country.
Rise of new challenges in the future, the need for new and organized laws, the global market for the gaming industry, involving all stakeholders, and the rise of national growth through the gaming industry.
This Article is written by Utsav Biswas, Gujarat National Law University, Silvassa, 1st-year B.A.LLB.
