The online gaming industry has witnessed a recent increase in India and there has been a spurt in a variety of online gaming platforms in India. We are one of the few law firms in India that have a robust legal team that assists clients in navigating the legal and regulatory landscape for setting up a business in this sector in light of various central and state legislations.
As background on this subject, the Constitution provides for ‘Betting and Gambling’ as a matter listed under Entry 34 under List II of Schedule VII (which lists out the subjects on which the individual States have the law-making authority). In simpler words, the State legislatures have been endowed with the power to legislate on matters relating to gaming. From a practical point of view, this can get very overwhelming and exhaustive for clients to go through each state's legislation and licensing requirements (if applicable). Our Team is well versed with the state-specific legislation and the relevant licensing requirements.
We possess a thorough knowledge of the prevailing laws in India about online gaming and online sports and can assist in overcoming all regulatory issues that may arise with the gaming laws of different states.
While setting up a business in India in this industry, it should be kept in mind that online gaming platforms are classified into two heads viz. ‘games of skill’ and ‘games of chance’. ‘Games of Skill’ are those where the outcome is determined primarily by mental or physical skill, rather than chance. In simpler terms, a game of skill is when a player needs to invest their time in learning, practicing, and mastering their skill to win. The success of any player in such games is dependent on the player's awareness of the rules and practices of the same, and on how efficient the player is at such a game.
In contrast, a ‘game of chance’ is where the aspect of luck or chance dominates skill or affects the outcome of the game. A game of chance may be determined entirely or in part by mere luck (not through any particular skill of the player) such as in a throw of dice. Incidentally, in a game of chance, there is no way of predicting a clear outcome.
Section 12 of the Public Gambling Act 1867 titled ‘Acts not to apply to certain games’ states ‘nothing in the foregoing provisions of this Act contained shall be held to apply to any game of mere skill wherever played’. This provision provides for an exclusion of games of skill from being prohibited and penalized. However, some states have their own gaming and gambling legislations which have some regulatory requirements for establishing an online gaming business.
Our Team is highly equipped to assist clients in navigating the complex state legislation about the online gaming industry.
There are various types of online gaming platforms including
(a) online fantasy sports platforms;
(b) online gaming platforms;
(c) online game streaming platforms; etc.
A&A’s Expertise In Online Gaming
We take pride in the fact that we have a team dedicated to gaming technology that focuses on the rapidly growing online gaming industry and the regulations governing the field. Our team has expertise in the regulations, compliances, and legislations in various states within India. Our team constantly stays updated with the gaming laws in the different Indian states and therefore is equipped to apprise its clients of the changing regulatory landscape in this field of law.
Further, our team has experience in representing and advising the expanding range of participants in the online gaming industry resulting from a deep understanding of the dynamic gaming business. These include online gaming platforms, influencers, sponsors, individual gamers, etc.
As one of the top law firms for online gaming, we are proud to offer bespoke advice and opinions on the gaming laws within India.
Our Sports Legal Services Include
We provide an array of services for establishing online gaming companies and platforms in India. Our services include:
- Incorporating of an online gaming entity by the Indian Companies Act, 2013.
- Advisory on gaming laws and regulations in different states and their implications.
- Drafting and representation on employee agreements and contracts.
- Compliances with licensing requirements in different states in India.
- Intellectual Property protection including trademark registration process, copyrights, etc.
- Compliance with the Information Technology rules and regulations in India including drafting of Privacy Policy, Terms of Use, Disclaimers, etc.
- Provide advisory on transactional documents including but not limited to preparation of due diligence report; shareholders agreement of the companies engaged in gaming; share purchase agreement, etc.
- Commercial Litigation.