Gaming has been one of the most engaging activities amongst people of all ages, drawing excitement and enthusiasm from all over the world. The covid-19 pandemic witnessed the explosive growth of technology and digital domains– along with the boom of the online gaming market– which is estimated to grow at a revenue of $300 billion globally by 2026 from $62 billion in 2020.
Technological advancement in recent years has changed many things in different countries worldwide, especially in India. Today India has over 606 million smartphone users, the second most in the world, and over 900 million users have access to high-speed internet at a very affordable cost.
Over the years, multiple betting platforms have emerged into the scene, and Indians have welcomed them with open arms. Data suggest that an estimated 80% of the Indian population bets once a year, and that tells us that a significant percentage of our population love online betting.
100 million players in India alone stepped into the fantasy esports world in 2020 and it went on to become one of the few trends that gained massive momentum in the pandemic. Such rapid growth and the involvement of real money bring forth the question of legality and laws governing the market.
Often you would hear people saying fantasy esports isn’t actually legal in India — and if you are wondering about the same, this article covers all the details about this exciting world and whether or not it is favorable for you to become a part of it.
What Is Fantasy Esports?
One valuable entry into the fantasy world is the Esports industry, a billion-dollar industry in itself; esports is the hottest thing in the sports market right now that has completely changed the demography of the only video gaming industry. Referred to as the golden goose, the combination of these two industries has created a wave, and a new era of online gaming has kicked in. The esports fantasy is a new concept that has revolutionized the fantasy sports industry, it has provided a platform where esports gamers can play online games like DOTA 2, Call Of Duty, Free Fire, etc., in a virtual world in different online gaming tournaments. While users who haven’t participated in the live game can also be part of those games by creating their own teams and joining contests, and on top of that, they can also win cash and exciting prizes.
Many apps have emerged in the space offering players to join fantasy esports from the convenience of a smartphone— which has further fueled the popularity of the sport among players in India and globally.
Read More What Separates Fantasy Esports From Betting And What Are The Laws in India?
Growing Trends and NumbersÂ
Data based on several studies suggest that the estimated global market size of the fantasy sports industry was USD 24 billion in 2021 and is expected to grow up to 78.5 billion dollars by 2030. The compound annual growth rate of the industry during 2018-2024 was over 11% and is expected to jump up to a whopping 14% during 2022-30.
The user base of fantasy sports is growing at an impressive 30-50% every year, and when we talk about exact numbers, the user count can easily cross 500 million users in a few years. The industry growth is at its peak, and these surprising numbers are proof, and with the entry of major sports tournaments like cricket and football in the fantasy world, it has attracted a tremendous amount of audience.
Fantasy Esports From A Legal PerspectiveÂ
The only law relating to sports betting and gambling in India was passed back in 1867; it is called the Public Gambling Act of 1867. According to the law, any forms of gambling and betting are illegal and punishable under a central law.
There is one more law in India that has some relationship with online activities, the Information Technology Act of 2000, the primary feature of the law is to manage cyber activities in India. But both laws have nothing to do with betting, as much of their rules are related to online theft and fraud.
The issue regarding the legality of fantasy sports has been brought in front of several high courts and even the Supreme Court, and almost every time it has been dismissed. In 2021, the Supreme Court put the final nail in the coffin of the question regarding the legality of fantasy sports in India. In a judgment, they gave a verdict that fantasy sports are games of skill that are protected under article 19(1)(g) of the constitution as regular business activities.
The subject related to “Betting” and “Gambling” are both present in the List II of the Constitution’s 7th schedule, but unfortunately, some state Governments completely control the industry, and its banned in some Indian states like Assam, Odisha, Andhra Pradesh, Telangana, Nagaland, and Sikkim.
In December 2020, Niti Aayog (a government think tank) proposed a draft titled “Guiding Principles for the Uniform National-level Regulation of Online Fantasy Sports Platforms in India” consisting of the guiding principles for governing fantasy sports in India— where the government recognizes the potential of the Indian gaming market and recommends the legal recognition and regulation of the industry.
Final Thoughts
Online fantasy esports and other sports are absolutely legal under the law in the Indian Constitution, and even the SC has acknowledged that it’s a game of skill and not a game of luck or chance. The judge said that “It can be safely deduced that the result of the fantasy games is not determined merely by chance or accident. The skill of the participant determines the result of the game and has a predominant influence on the outcome of the fantasy game,”.
Moreover, fantasy sport is also contributing to the economy as a 28 percent tax is levied on games of chance, and 18% on games of skill. The Government of India is expected to draft new betting and gambling laws to make it fully legal so that it could work openly in the market. Online betting apps have become a sector on their own and generate much-needed tax revenue for the country.
The gaming industry is transforming into a great career opportunity for players globally, with fantasy sports being one of the quickest-growing gaming sectors. The Indian esports market is already promising and as the government steps up to regulate it, the industry will be ready to tap into its complete potential.
Fanclash: Esports Tournaments And Fantasy Esports
Now that you know that fantasy esports is legal in India and favorable to join, become a part of the journey of exciting esports tournaments, fantasy games, and crazy prizes – with FanClash, India’s first esports fantasy platform.
