News By/Courtesy: Shruti | 29 Jul 2021 11:06am IST

HIGHLIGHTS

  • Court dismisses application to ban online fantasy games in Rajasthan, ruling that such a directive would be in violation of Articles 14 and 19(1)(g) of the Constitution.
  • Create fantasy sports teams requires more skill than managing a mutual fund portfolio, according to Niti Aayog's self-regulatory guidelines and IIM Bangalore's research.
  • Petitioners urged the state to regulate or outlaw fantasy sports and other online games that require little skill and involve betting money on the outcome.

An application to ban the offering or playing of online fantasy games in Rajasthan was dismissed by the Rajasthan High Court, which ruled that such a directive would violate Articles 14 and 19(1)(g) of the Constitution. Chief Justice Indrajit Mahanty and Justice Satish Kumar Sharma, sitting on a division bench, made the following observation: "We are thus of the opinion that the provision of online fantasy sports in accordance with the Charter of the FIFS has already been judicially recognized as a business and, as such, is entitled to protection under Article 19(1)(g) of the Constitution of India, and the prayer seeking directions to the State Government to prohibit the same would be contrary to Articles 14 and 19(1)(g) of the Constitution." The petition requested that the State regulate or prohibit the offering and playing of any online fantasy game and other online games involving "mere skill by putting money at stake in expectation of winning."

The Federation of Indian Fantasy Sports (FIFS) filed a reply, relying on judgments delivered by various Courts to argue that online fantasy sports are games of skill, distinct from gambling/betting, and thus protected under Article 19(1). (g). Further reliance was placed on the Niti Aayog's Draft Self-Regulation Guidelines as well as research conducted by the IIM Bangalore to establish that creating teams on a fantasy sports platform requires a higher level of skill than what is required of a mutual fund manager to manage the mutual fund portfolio. With respect to online fantasy sports in particular, "it is clear from the pleadings and hearing from learned counsel for both parties that [petitioners] are asking the state government for directions on how to pass legislation prohibiting all online gaming activities," the court noted.

A review of its judgment in Ravindra Singh Chaudhary v. Union of India & Ors., where a complaint against Dream 11 Fantasy was dismissed by the Supreme Court, the court said in response to the plea. A fantasy game's results depend on skill, not chance, and winning or losing a virtual team created by the player is independent of the outcome or event in real life, so we hold that respondent No.5's format is a game of skill, and their business is protected by Article 19(1)(g) of the Constitution." Therefore, the Court dismissed this case.

Section Editor: Miss Lucky Sinha | 29 Jul 2021 12:14pm IST

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Tags : #Rajasthanhighcourt #OnlineGaming #FantasyGames

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