The Economics of Gambling
Skill Versus Chance
How Indian courts separate games of skill like rummy from games of chance, the 1968 Satyanarayana judgment, and why this line mattered for online gaming firms.
Indian law treats games of skill differently from games of chance.
Test
A game is of skill if skill dominates the outcome, even if chance plays a part.
Rummy
In 1968, the Supreme Court (in State of Andhra Pradesh v. K. Satyanarayana) held rummy is a game of skill.
Fantasy sports
High Courts held fantasy sports like Dream11 to be skill games, and the Supreme Court declined to disturb this.
Poker
Courts gave mixed views on poker.
Why it mattered
The skill exemption let online rummy, poker and fantasy platforms grow into a big industry.
State bans
Some states like Tamil Nadu tried to ban online rummy; courts struck down or limited some bans.
A user picks a fantasy cricket team based on player form and pitch conditions, which courts saw as skill.
They involve chance, but skill dominates.
- Skill games are treated differently from chance.
- Rummy was held a skill game in 1968.
- Fantasy sports were held skill-based.
- The line let online gaming grow.
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