The validity of fantasy sport and the resultant Demarcation between games of skill and chance has frequently come into question. But, recent case legislation have established dream sports as a game of skill in comparison with illegal activities like sports gambling that are games of chance. A game of skill could be described as some other game or competition in which the designating part of this result is that the judgment, skill or adroitness of this player at the competition instead of pure chance20. Such kind of matches encourage the consumer to understand, expertise and analyse aspects linked to the game. Predominance of ability Fantasy sports because a sport requires the consumer to pick a group depending on the use of the understanding of this particular the game and entails player performance evaluation.
The outcomes are dependent About the performances of every individual participant rather than of one participant thereby reducing the probability of luck. Therefore, it requires customers to possess an awareness of the game plus a decision of chosen players’ performance over the others. 19.
Thus, fantasy sports would be classified as a game of’mere ability’.
Status of fantasy sports and their classification as a’match of ability’. As per the Indian legal system, fantasy sports and sports betting or gambling activities are differentiated on the basis of the predominance of’ability’ or’fortune’. Also, in the recent ruling of the High Court of Punjab and Haryana in the case of’Shri Varun Gumber vs. Union Territory of Chandigarh and many others’ in 201721, it was held that playing fantasy sports of the type under consideration in the case (i.e. a Dream11 game) involved a substantial degree of skill and did not amount to gambling.
The Court held that ‘the Element of ability’ had a predominant influence on the outcome of the game under consideration, which had the following format:
• Participants have to choose a team consisting of the same number of players as the real-life sports team (e.g. five in basketball, seven in kabaddi and eleven in cricket/football etc.)
• The fantasy sports team needs to have a mix of players from both the participating real-life sports teams
• All contests are run for at least the duration of the relevant real-life match
• No team changes are allowed by participants after the start of the relevant real-life match.
On the above basis, the Court adjudged that the above format, as offered by Dream11, constitutes a ‘game of only ability’, and that Dream11 is a legitimate business activity protected under Article 19(1)(g) of the Constitution of India22. Later, an appeal against the Punjab & Haryana High Court’s decision was filed which was subsequently dismissed through an order of the Hon’ble Supreme Court. This clarification concerning the legal standing of the aforementioned Dream sports structure has helped improve the overall Fantasy sports market concerning a bigger quantity of Platforms going into the marketplace with comparable formats And also resulting in widespread consumer adoption.
Fantasy Sports in India continues to grow
Not only mobile or PC gaming, the e-sports and especially dream gambling has gained much recognition in India in the past few years and the dream sports consumer base in the nation is predicted to reach 100 million by next year.
The dream sports landscape in India has seen a substantial transformation since its launch almost two years ago. In the previous two-three decades, online dream sports gambling (OFSG) in India has seen stupendous growth.
The amount of dream sport operators has risen by seven days over 2016-2018, whereas the amount of users has increased by over 25 days from June 2016 to February 2019.
The online gaming sector in India is expected to produce a revenue of Rs 11,900 crore from the fiscal year 2023, rising at 22 per cent CAGR, as shown by a recent report by consulting significant KPMG and also the Indian Federation of Sports Gaming (IFSG).
Concerning total documented user base on a dream gambling stage, Dream11, that has investors such as Kalaari Capital and Tencent, is the industry leader with 50 million registered users.
Its user base has increased at a CAGR of over 230 percent over a span of 3 decades.
A number of the prominent players in this section like Dream11, MyTeam11, Halaplay, 11Wickets, Starpick and Fantain also have surfaced with sports leagues because their dream sports match associate.
Aside from these types of operators, prob vb v minent leagues such as Indian Premier League (IPL) operate their very own official fantasy leagues.
The 3 important sections of internet gambling are — real cash games (RMG), mobile-centric/casual games and e-sports. Inside the RMG genre, the additional sub groups include rummy, poker, everyday dream sports and quizzing.
A number of the essential causes of this rapid adoption of fantasy sports comprise development of sport leagues, expansion in electronic infrastructure, greater investor interest, reaffirmation across the legality of fantasy sports and crucial partnerships of fantasy sport programs together with sports leagues, amongst others.
But the majority of the competitions continue to be on a’Free to play’ foundation as almost 85 percent of Dream11’s overall user base plays free of charge.
Other revenue streams for programs may contain advertisements, competition sponsorships and brand ventures. The majority of the popular sports such as cricket, soccer, basketball, kabaddi are offered on fantasy sports programs.
For Dream11, cricket is the most popular game on its own stage constituting roughly 85 percent of its own user base, but that has decreased over the previous 3 decades as the sports gained traction with development of new championships in India.
As per a survey, almost 75 percent of those respondents play sports 1-3 times each week, together with the vast majority playing once per week. A substantial 20 percent of those respondents reported playing more than five times every week. This participation frequency has been further afield throughout the subsequent parameters.
Though playing frequency is quite consistent throughout the age groups of 18-24 and 25-36 with almost 75-80 percent of the respondents enjoying one-three times every week, the 37-50 age class has been seen to possess a relatively higher involvement.
Almost 50 percent of the respondents at the 37-50 age category reported playing fantasy match over four times every week.
The participation frequency at the income group earning more than Rs 3 lakh per annum reveals 40 percent of the respondents enjoying fantasy sports over five times every week.
Frequency of playing over five times per week has been found to drop progressively with rising income levels, with just 12 percent of those respondents earning more than Rs 10 lakh per annum enjoying over five times every week.
Though the chance to win was proven to be the incentive for 30 percent of their respondents, almost 46 percent of the respondents had been discovered to have played versions of dream matches in the previous 12 months.