Online gaming: skills and chance

The bill proposes to regulate Online Games Skill and defines wagering or betting on ‘online games of skill’ for making profit by providing a medium (internet) for playing these ‘games of skill’ not amounting to gambling. The games of skill involving money would not be deemed to be gambling as being provided and accessed from territories where ‘games of skill’ are “exempted from the ambit of gambling.”

To participate one would need a credit card or a PayPal account. . Some sites start out with some fixed amount worth of “practice money,” which gives the beginner a chance to try out the system without taking any risks. Once the player has an account with the site, he or she can usually still choose to practice or play in free tournaments to hone one’s skills. The question is if online skill game can be considered as gambling?

According to information received, the legality of online game varies from place to place in other countries since online skill game is relatively a new activity where the technology beats the law by miles. The debate over only gaming and gambling continues primarily, since games of skill such as poker or roulette have been described as ‘game of chance’(gambling) while in other places, it is labelled as game of skill. By the same yardstick, card games involving money, that are popular among certain sections, can also be termed as ‘game of skill’ in line with the definition of online skill game.

Although the distinctions between skill-based games and games of chance are clear, there are a few states within the U.S. that have not yet permitted skill-based games to be played for cash or prizes. In those states, online skill games can be played but only on a free basis without cash or prize offerings. 

It remains to be seen if the Online Games of Skill is an innocuous bill that hides the agenda of offering online games such as poker, roulette etc. The fact is that such cash for skill games could turn out to be another way of operating gaming casinos online. Playing cards with the intent of winning the prize money is an addictive game that has destroyed many homes. 

Even though the Online Games of Skill may pass off as games of skills, the catch is in winning money as prize. Perhaps the mothers and church may reflect on the bill and come to a conclusion on whether such activities can be legalised. 

Sikkim is so far the only state in India which has enacted a statute pertaining to online gaming i.e. Sikkim Online Gaming (Regulation) Act, 2008 (“Sikkim Gaming Act”). In terms of the Sikkim Gaming Act, an interested person can obtain a “license” for the purpose of conducting online games such as Roulette, Black-jack, Pontoon, Puntobanco, Bingo, Casino Brag, Poker, Poker dice, Baccarat, Chemin-de-for, Backgammon, Keno and Super Pan 9.

In view of various court interpretations in various states, it was observed that only Games of skill and that too played in physical form have been held by the courts to be valid and falling within the ambit of various enactments, dealing with Gaming, in India. However, as far as, on-line Gaming is concerned, the courts are of the view that on-line Gaming could not be compared to real game being played and would, therefore, not be allowed until ‘skill’ test is passed by it

The Nagaland Prohibition of Gambling and Promotion and Regulation of Online Games of Skill Bill 2015 is to come into force with effect on such date as the government may, by notification in the state gazette appoint.

Chief minister, in the bill mentioned that the bill seeks to regulate and promote the conduct of online games of skill with the primary objective of earning revenue for the state government by way of licensing fees and royalty. The potential of the bill is that it could open up a wide variety of games of skills as would be defined by paying money with the objective of winning the prize money. 

A proper debate would have been helpful on whether such a bill is needed to earn revenue as it opens the door wide for manipulation at certain levels.