Esports betting: Legitimate Or Not?

While esports betting may still be a vague notion for most of us, it is a full-fledged developed concept for many. But is it legal in India? If not, why?

Archana Balasubramanian, Partner, Agama Law Associates

Esports’ growing popularity has caught the eyes of the betting industry. Esports betting, involves betting on the best esports players, teams, tournaments or matches, based on individual preferences and predictions. Games like

Counter-Strike: Global Offensive (CS: GO), League of Legends,

DOTA 2, Fortnite, Overwatch and

Hearthstone are popular choices for esports betting.

The mix-up!

Betting, is often viewed in a negative light, but that depends on the betting one indulges in. Talking about if esports betting is legal in India, Archana Balasubramanian, Partner at Agama Law Associates, says, “Presently, betting or gambling in esports does not fall under the traditional definition of gambling under the Public Gambling Act, 1867 and is hence, unregulated. Gambling typically applies to games and sports that are speculative. With esports, the playing itself is not speculative. One must remember that the law does not prohibit online gaming. Betting, however, is a different ball game. Esports is often confused with gambling games. But it is important to appreciate the difference.”

“Betting in esports depends on whether it falls within the skillbased or chance-based category; however, it is unregulated. The legality would have to be tested for each betting format/website unless clear regulations are promulgated. Most Indian legal literature focuses on online gambling, which is a very different ball game from esports.

The acting laws

We asked Archana under the purview of which laws does esports betting categorise. She says, “While the Public Gambling Act, 1867 is the only centrally recognised law related to gambling/gaming activities in India, little or no steps have been taken to codify a regulatory framework governing the operation of esports/online gaming esports betting related businesses in India.” It is to be noted that currently, legislations like the Public Gambling Act, 1867; IT Sensitive Personal Data Rules; Prevention of Money Laundering Act, 2002; Information Technology Act, 2000 and The Advertising Standards Council of India cover the areas related to e-gaming but not esports specifically.

Betting on India’s betting rule

Talking about where India stands in esports betting and if it has a future in the country, Archana says, “Esports betting is gaining massive popularity on various online betting platforms. The regulatory grey areas are presently being exploited by many as there is no prohibition or blanket embargo on esports betting in India as yet. However, it must be remembered that as and when there are legislations in India for esports/ regulating betting in esports, the same will be stringent much like the current gambling regulations.”

While esports betting may not be in the right light currently due to the unstructured and unregulated legislations around it, one cannot neglect the prospects and scope of the activity. Esports betting also involves placing bets based on a thorough statistical analysis of data, analytical reasoning and right decision making, not mere chance or luck. Esports betting can fall under the purview of skillbased betting. It is imperative to introduce a necessary legislative framework to regulate theindustry challenges of esports.

By Amarylisa Gonsalves