Need For Clear Parameters Between ‘Game Of Skill’ And ‘Game Of Chance’

Date:

Trending

- Advertisement -

The growth of the online gaming industry and the new taxation regime have shone a light on the games of skill versus games of chance debate yet again. The arguments unfurling highlight the pressing need to differentiate between the two.

In many jurisdictions around the world, games of skill are often considered distinct from gambling activities, and may not be regulated as strictly.

However, the recent GST amendments have imposed a uniform rate of 28% on the face value of all bets placed in online games or gambling activities. Thereby, approaching both games of skill and chance with similar restrictions.

Additionally, the rules released by the Ministry of Electronics and Information Technology (MeitY) under the IT Amendment Act (2023) had termed online gaming platforms as intermediaries which have also burdened them with additional compliance costs and subjected them to regulate gambling or wagering activities on their platforms.

The MeitY rules aim to restrict online gambling and wagering activities, wherein wagering on outcome or chance is not allowed.

- Advertisement -

However, the users can still play real money games online by making cash or kind deposits and expecting returns on these deposits. Thus, a blurry line between skills and chance in online gaming has given rise to many legal debates demanding better taxation and regulations to encourage skills-based online gaming.

The rise and recognition of Esports and fantasy sports have further highlighted how competitive video games heavily rely on skills, experience, and knowledge aspects and not just on gambling. The shift of e-sports or e-games from gaming consoles to mobiles has led to a surge in platform users.

Especially, in India the growth of users has been rapid due to the availability and accessibility of smartphones and low-price internet. As an outcome, the increased number of online gaming platform users has thrown up concerns for society which include addiction, overspending, and misuse.

Further, such concerns have been exacerbated as the online versions of gambling and wagering activities have come up compared to earlier times in India when wagering was restricted to a premise requiring a license to host such activities.

- Advertisement -

Considering the surge in the number of online gaming and gambling platforms the MeiTY rules clearly prohibit online gaming intermediaries from hosting games that are not verified as permissible. Thus, the rules make gambling or wagering activities via e-platforms with unpredictable outcomes as non-permissible.

Now, the challenge arises that many online games that require the use of skills, knowledge, experience expertise, and critical thinking abilities of the player also involve the use of real money for deposits.

Currently, India has over 400 gaming companies and a staggering 420 million online gamers expected to reach 700 million by 2025. These numbers point to the prospective growth opportunities for the e-gaming industry in India and the compelling need to distinguish games of skill such as chess, rummy, and Dota 2 from games of chance. Thereby bringing games of skills played using real money under the permissible category.

Thus, the parameters for distinguishing are to value whether the outcome is skill-based or of chance, or whether there is a possibility of any manipulation by the developer or by the gaming platform. Most importantly, the parameters hold the potential to address the blurry line between skills-based fantasy and predictable e-games that involve wagering but are not played on sheer chance. These can be some fundamentals to develop the parameters distinguishing the two.

THE SNAPSHOTS

Sign up to get quick snaps of everyday happening, directly in your inbox.

We don’t spam! Read our privacy policy for more info.

- Advertisement -
Dr. Aruna Sharma
Dr. Aruna Sharma
Dr. Aruna Sharma, Policy Advisor and Practitioner Development Economist.

More Latest Stories

More Articles

How Air Can Become Urban India’s New Water Source

India's cities are running dry. Chennai nearly ran out of groundwater in 2019. Bengaluru's lakes are shrinking. Delhi's borewells are drawing from depths unimaginable...

The Human Algorithm: Why the Future of Digital Marketing Belongs to Empathetic Strategists

The modern marketing department is quieter than it used to be. The frantic tapping of copywriters racing against deadlines and the loud debates of creative directors have largely been replaced by the hum of servers processing natural language. Today, an enterprise can generate ten...

How AI is Rewriting the Economics of India’s $300 Bn IT Services Sector

When Microsoft CEO Satya Nadella recently disclosed that artificial intelligence now generates nearly 30...

Bounce House Rental vs Inflatable Slides: Which Option Delivers More Excitement?

Planning a family gathering or a children's party often involves finding the perfect entertainment...

How Hiring a Qualified Plumber Solves Major Household Issues

For many homeowners, maintaining a functional and safe home is a top priority. Plumbing...

Why India Must Own Its Education Intelligence Stack

India has rapidly digitised large parts of its education ecosystem over the last decade....

Why Micro Learning at 3 Minutes Works Better Than Lectures at 3 Hours

In the fast-moving world of digital education, there is one myth that continues to...

More Than Just a Scratch: The Importance of Windshield Care

Maintaining your vehicle’s windshield often appears as a seemingly minor task that can easily...

How Choosing A Licensed Plumber Ensures Quality Repairs

When it comes to maintaining a safe and comfortable home, the quality of plumbing repairs can significantly impact your daily life. From leaky faucets...

The world’s largest crypto market is building in the dark

India remains one of the few significant economies without a comprehensive crypto and stablecoin...

How Location Data Storage Technology is Making City Travel Smoother

India’s mobility ecosystem is undergoing a quiet but powerful transformation, driven not just by...

India Is Building Cities Without Building the Systems That Make Them Work

India is in the middle of the largest urban expansion in its history. By 2050,...

Why Cyber Resilience Is Replacing Cybersecurity as a Boardroom Priority

Traditionally, cybersecurity was hard-wired to be a technology concern that was only taken care...

Infrastructure 4.0: How AI & Predictive Analytics Are Transforming Real Estate

The new era of technology and innovation has changed operations in many industries. The integration of artificial intelligence in different industries is making processes...

The Rise of Integrated Solar Tech Ecosystems in India

India’s clean energy is all about building an ecosystem that is interconnected with various elements and goes beyond just installing solar panels at scale. Renewable energy generation, storage, digital intelligence, manufacturing, financing, and grid infrastructure work together within the said ecosystem in a coordinated...

Beyond Nvidia: The Hidden Winners of the AI Stock Rally

Nvidia stock (NASDAQ:NVDA) has returned roughly 1,200% since ChatGPT launched in late 2022. Most...

What PM Modi’s Appeal to Avoid Gold Buying Could Mean for India’s Jewellery Economy

When Prime Minister Narendra Modi recently urged citizens to avoid purchasing gold for a...

How Agentic AI Is Personalising the End to End Salon Experience

Walk into a salon today, and more often than not, the experience still depends...

From Black Box to Trusted AI: Why Defence Needs Constitutional AI Models

For decades, the defence and intelligence agencies have followed one non-negotiable rule: trust nothing...

Apple Reports $111.18 Billion Revenue in Q2 FY26, Net Profit Rises to $29.6 Bn

Apple Inc. (NASDAQ:APPL) has reported its financial results for the quarter ended March 28,...

Hermès vs MetaBirkin: The NFT Case That Redefined Ownership on Ethereum

The NFT boom of 2021 and early 2022 pushed digital assets into the mainstream,...

Bihar Police, Vehant Technologies Partners to Deploy Screening Systems Across 40 Courts

In a bid to enhance safety and security across court premises for judges, lawyers,...

Rethinking Hospital Security: TrioTree Technologies CEO Surjeet Thakur on Securing Fragmented Hospital IT Environments

In an interaction with TechGraph, Surjeet Thakur, Founder and CEO of TrioTree Technologies, outlined...

What the Next Phase of Growth Looks Like for Indian and Global E-commerce Players

For close to a decade, metrics for evaluating the growth of e-commerce included customer...

India Is Building Cities Without Building the Systems That Make Them Work

India is in the middle of the largest urban expansion in its history. By 2050,...

“Budget should focus on reducing taxes on capital gains,” Says Abhishek Gupta of Hex N Bit

Speaking in the upcoming Union Budget 2021, Abhishek Gupta, Founder, and CEO, Hex N...

“China is a Global thief” Rep. Tom Rice on Uyghur Forced Labor Prevention Act

Speaking at the House on Uyghur Forced Labor Prevention Act, Rep. Tom Rice (R-SC)...

Borade AI Founder Shiv Kumar Borade on Building an AI Growth Engine for Small Businesses

Speaking with TechGraph, Shiv Kumar Borade, Founder & CMD of Borade.AI, discussed how many...

When AI-Generated Documentation Hurts More Than Helps

AI-generated documentation has quickly become a selling point for modern SaaS and developer platforms,...

Why Cyber Resilience Is Replacing Cybersecurity as a Boardroom Priority

Traditionally, cybersecurity was hard-wired to be a technology concern that was only taken care...

Alphabet Discloses $2.14 Billion in Public Equity Holdings as of June 30

Alphabet Inc. disclosed $2.14 billion in equity securities held across 39 positions as of...

Gaming for Good: Boosting the Indian Gaming Community through Technology

The Indian gaming industry is transforming remarkably, driven by technological advancement and a growing...

India to generate $100 bn from telephonic investments

India expects to attract $100 billion in investments in the telecom sector, a union...