The fantasy sports industry in India has grown significantly in recent years, attracting millions of users. However, its legal framework is complex, with different rules across states. While fantasy sports are generally recognized as skill-based games rather than gambling, various regulations impact their operation, taxation, and advertising.
Understanding these regulations is essential for both businesses and players to ensure compliance with legal requirements. This blog provides an in-depth overview of fantasy sports regulations in India, covering key legal rulings, state-wise restrictions, taxation policies, and industry challenges.
Legal Status of Fantasy Sports in India
Fantasy sports in India are categorized as games of skill, making them legal in most states. The distinction between skill-based and chance-based games plays a crucial role in determining their legality.
Supreme Court’s Ruling
- In August 2021, the Supreme Court of India ruled that fantasy sports require skill, making them legal and distinct from gambling.
- This ruling reinforced previous high court decisions, allowing fantasy sports to operate within a structured legal framework.
High Court Decisions
Several high courts have upheld the legality of fantasy sports:
- Bombay High Court (2019) – Declared fantasy sports as skill-based and legal.
- Rajasthan High Court (2021) – Ruled that fantasy sports do not fall under gambling laws.
- Kerala High Court (2022) – Recognized fantasy sports as a game of skill under the state’s Gaming Act.
These rulings provide legal support for the industry, allowing platforms to function under established guidelines.
State-Wise Fantasy Sports Regulations
Despite national recognition, fantasy sports regulations vary across Indian states.
States Where Fantasy Sports Are Legal
Fantasy sports can operate freely in the following states:
- Maharashtra
- Rajasthan
- Haryana
- Punjab
- West Bengal
- Uttar Pradesh
States That Have Imposed Bans
Some states have restrictions or outright bans due to their gaming laws:
- Telangana – Prohibited online gaming since 2017.
- Andhra Pradesh – Banned fantasy sports under the state’s Gaming Act.
- Odisha – Classified fantasy sports under gambling laws.
- Assam – Imposed restrictions under the state’s Betting Act.
- Nagaland & Sikkim – Require special licenses for fantasy sports platforms.
Users should check their state regulations before participating in fantasy sports contests.
Role of the Federation of Indian Fantasy Sports (FIFS)
The Federation of Indian Fantasy Sports (FIFS) is a self-regulatory body that oversees the industry, ensuring fair play and compliance with legal standards.
Key Responsibilities of FIFS
- Standardization – Develops industry best practices.
- Policy Advocacy – Engages with policymakers to shape regulations.
- Dispute Resolution – Addresses issues between users and platforms.
FIFS plays a critical role in establishing a transparent and structured environment for fantasy sports in India.
Advertising and Responsible Gaming Guidelines
To promote ethical gaming practices, the Advertising Standards Council of India (ASCI) issued guidelines for fantasy sports advertisements:
- Age Restriction – Ads must state that participants should be 18+ years old.
- Risk Disclaimer – At least 20% of the ad space must highlight financial risks.
- No Misleading Claims – Ads must not suggest that fantasy sports guarantee financial success.
These regulations ensure that fantasy sports platforms promote responsible gaming while maintaining transparency with users.
Taxation Policies for Fantasy Sports in India
Goods and Services Tax (GST)
- A 28% GST is levied on the full contest entry amount, increasing operational costs for fantasy sports platforms.
Tax Deducted at Source (TDS)
- Winnings above ₹10,000 are subject to a 30% TDS deduction.
- Net winnings are calculated monthly for tax purposes.
Understanding these taxation rules is crucial for both fantasy sports businesses and players engaging in paid contests.
Future Challenges and Industry Growth
The Indian fantasy sports industry is expected to reach ₹50,000 crore by 2025, with over 200 million users. However, certain challenges remain:
- Regulatory Uncertainty – The lack of uniform regulations across states creates legal complexities.
- High GST Rates – The 28% GST on contest entry fees affects profitability and user participation.
- Responsible Gaming – Ensuring players engage responsibly is a growing concern.
Conclusion
Fantasy sports in India continue to grow, supported by legal recognition and increasing user participation. However, regulatory differences across states, high taxation, and responsible gaming measures remain key challenges.
Businesses entering the fantasy sports market must stay updated on legal changes and adopt strategic marketing approaches to navigate these regulations effectively.
FAQ’s
Is fantasy sports legal in India?
Yes, fantasy sports are legal in most Indian states and recognized as a game of skill by the Supreme Court. However, some states have restrictions.
What is the difference between fantasy sports and gambling?
Fantasy sports involve skill-based decisions, such as team selection and strategy, whereas gambling relies on chance. This distinction makes fantasy sports legal in many states.
Do I need to pay tax on my fantasy sports winnings?
Yes, winnings above ₹10,000 are subject to a 30% TDS deduction as per Indian tax laws.
What are the guidelines for fantasy sports advertisements?
Fantasy sports ads must include age restrictions, risk disclaimers, and avoid misleading financial claims, as per ASCI guidelines.
How can fantasy sports startups comply with legal regulations?
Startups should follow FIFS guidelines, implement responsible gaming measures, and ensure compliance with state-wise laws. They can opt for Legal Consultancy Services to make sure of proper Legal Compliance.