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of <h1>Fantasy sports games by Dream11 ruled as games of skill, not gambling - Court decision</h1> <h3>Shri Varun Gumber Versus UT Of Chandigarh & Ors</h3> Shri Varun Gumber Versus UT Of Chandigarh & Ors - TMI Issues Involved:1. Applicability of the Public Gambling Act, 1867.2. Determination of whether Dream11's fantasy sports games constitute gambling.3. Examination of the element of skill versus chance in fantasy sports.4. Legal protection under Article 19(1)(g) of the Constitution of India.Issue-wise Detailed Analysis:1. Applicability of the Public Gambling Act, 1867:The petitioner sought directions to initiate criminal prosecution against the Respondent Company under the Public Gambling Act, 1867, alleging that the activities on their website constituted illegal gambling. The Court examined the applicability of Sections 11 and 12 of the Act, which indemnify witnesses and exempt games of mere skill from the Act's provisions. The Court concluded that the games offered by the Respondent Company do not fall under the purview of the Public Gambling Act, 1867, as they are games of skill.2. Determination of whether Dream11's fantasy sports games constitute gambling:The petitioner argued that the activities on Dream11's website were purely games of chance and thus amounted to gambling. The Respondent Company countered this by detailing the nature of fantasy sports games, emphasizing that they require material and considerable skills in drafting and managing virtual teams. The Court referred to the Supreme Court's judgment in K.R. Lakshmanan vs. State of Tamil Nadu, which established that games involving substantial skill are not considered gambling. The Court held that Dream11's fantasy sports games are games of skill and not gambling.3. Examination of the element of skill versus chance in fantasy sports:The Respondent Company provided a detailed explanation of the skill involved in playing fantasy sports games, including assessing the relative worth of athletes, studying rules, and making strategic decisions. The Court noted that the success in these games arises from the user's exercise of superior knowledge, judgment, attention, and adroitness. The Court concluded that the element of skill predominates over any incidental chance in Dream11's fantasy sports games, making them games of mere skill.4. Legal protection under Article 19(1)(g) of the Constitution of India:The Court observed that gambling is not protected under Article 19(1)(g) of the Constitution, which guarantees the right to practice any profession or carry on any occupation, trade, or business. However, since Dream11's fantasy sports games are games of skill, they constitute a business activity protected under Article 19(1)(g). The Court recognized that the Respondent Company operates with due registration, pays service tax and income tax, and thus is entitled to constitutional protection.Conclusion:The Court dismissed the writ petition, holding that Dream11's fantasy sports games are games of skill and not gambling. Consequently, the provisions of the Public Gambling Act, 1867, do not apply to the Respondent Company's activities. The Court affirmed that the Respondent Company's business is protected under Article 19(1)(g) of the Constitution of India.
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