LawRato

Are online mobile games rewarding money legal in India


26-Apr-2023 (In Cyber Crime Law)
Are online mobile Teen Patti games considered as "games of skill" or "gambling" in India? Especially if players are rewarded in monetary terms for their performance in the games? Are there any state-specific laws that regulate cash payouts to players? Thank you.
Answers (2)

Answer #1
753 votes
Hi,
Gambling is " the act of wagering or betting for money".The Gambling legislation provides that the restrictions wouldn't apply to the games of "mere skill". (1) The competitions were success depends on substantial degree of skill will not fall into the category of gambling. (2) Despite there being an element of chance , if a game is preponderantly a game skill it would nevertheless be a game of mere skill.
So, Teen patti, rummy, poker etc are "mere skill" in India. Sikkim is the only state passed the act, "The online gaming (Regulation) Act 2009. The bill was passed on 4 th March 2009.
Thanks for your query. Have a nice day.
Answer #2
783 votes
Hi
1) Games such as Teen patti are considered gambling in india where as game of Rummy is considered a game involving preponderance of skill rather than chance.
2) State of Sikkim has regulated Online game being offered in their state where as State of Telangana has expressly prohibited online games being operated in state of Telangana.
3)Other states have not enacted any laws on Online gaming and since there is no regulation in these states, online portals are accepting real money deposits and making real money payout to their customers.
4) So, legally there is NO bar on players playing with real monies in states that do not have any legislation in regulating online gaming.
5) But services offered by online gaming portal are liable for GST at 18% and cash pay outs on winnings are subjected to Tax Deduction at Source as per Income tax act
Hope this information is useful.

Disclaimer: The above query and its response is NOT a legal opinion in any way whatsoever as this is based on the information shared by the person posting the query at lawrato.com and has been responded by one of the Divorce Lawyers at lawrato.com to address the specific facts and details.

Report abuse?

Comments by Users

No Comments! Be the first one to comment.

"lawrato.com has handpicked some of the best Legal Experts in the country to help you get practical Legal Advice & help."