Gaming

Games of skill are generally legal across India. Games of chance (gambling) are regulated by state laws and are prohibited in most states. The critical question is whether a specific game is classified as a game of skill or a game of chance. The Supreme Court has held that a game where the element of skill predominates over chance is a game of skill. Several High Courts have upheld the legality of fantasy sports, rummy, and poker as games of skill, though some states have enacted legislation specifically restricting or banning certain online games regardless of the skill-chance classification. The legal position varies by state, and we advise gaming companies on regulatory compliance across jurisdictions.

Following the GST Council’s decision in 2023, online gaming is taxed at 28% GST on the full face value of bets placed, applicable to all forms of online gaming including games of skill. This applies regardless of whether the game is a game of skill or chance. The amendment to the CGST Act introduced specific provisions for the valuation of supplies in online gaming. For offshore gaming companies, the GST framework requires registration and compliance in India if they supply online gaming services to Indian users. The 28% rate on full face value has significantly impacted the unit economics of gaming companies. We advise on GST structuring and compliance for gaming operations.

Gaming involves multiple layers of IP. The game software is protected by copyright. Characters, logos, and brand names can be trademarked. Game mechanics, while generally not copyrightable or patentable in India, may be protected through trade secret and contractual measures. In-game assets (skins, items, virtual currency) raise questions about ownership, licensing, and whether they constitute virtual digital assets for tax purposes. User-generated content within games requires terms of service that address IP ownership and licensing. The integration of NFTs and blockchain-based assets adds further complexity. We advise on IP protection strategies tailored to gaming business models.

Fantasy sports platforms must comply with the IT Act and intermediary guidelines, including appointing a grievance officer, implementing KYC verification for paid contests, and displaying terms and conditions prominently. Under the Consumer Protection Act, platforms must ensure transparent pricing, fair contest mechanics, and accessible grievance redressal. GST registration and compliance at 28% on full face value is mandatory. State-level gaming laws may impose additional requirements or restrictions in specific jurisdictions. FEMA considerations arise if the platform operates across borders or has foreign investment. We advise fantasy sports platforms on the full regulatory stack and help structure operations to comply across states.