"Prohibition Would Be Opposed To Art. 14, 19": Rajasthan High Court Dismisses Plea Against Online Fantasy Games

The Rajasthan High Court has recently dismissed a petition seeking prohibition on offering or playing of online fantasy games in the State, after observing that such a direction will be opposed to Article 14 and 19(1)(g) of the Constitution.

A division bench comprising of Chief Justice Indrajit Mahanty and Justice Satish Kumar Sharma observed thus:

"We are, therefore, of the view that offering of online fantasy sports in accordance with the Charter of the FIFS has already been judicially recognized as a business and consequently, entitled to protection under Article 19(1)(g) of the Constitution of India and the prayer seeking directions to the State Government to prohibit the same would be opposed to Article 14 and 19(1)(g) of the Constitution of India."

The petition sought directions to regulate or prohibit the offering and playing of any online fantasy game and other online games involving "mere skill by putting money at stake in expectation of winning" in the State. 

A reply was filed by Federation of Indian Fantasy Sports (FIFS) wherein reliance was placed on the judgments delivered by various Courts to submit that online fantasy sports are games of skills distinguished from gambling/betting and enjoy protection under Article 19(1)(g).

Further reliance was made on Draft Self Regulation Guidelines issued by the Niti Aayog as well as research conducted by the IIM Bangalore to establish that making teams on a fantasy sports platform demonstrates a higher range of skill than what is required by a mutual fund manager to manage the mutual fund portfolio.

"Having heard learned counsel for the respective parties and their pleadings, it is clear that the petitioners have sought for directions to the State Government to make appropriate Legislation to prohibit all sorts of online gaming activities, notwithstanding whether they are games of mere skill or games of chance with more emphasis on online fantasy sports," the Court observed.

It further opined that the plea is nothing but an attempt of reviewing its judgment in the case of Ravindra Singh Chaudhary v. Union of India & Ors. whereby plea against Dream 11 Fantasy was dismissed.

"Since the result of fantasy game depends on skill of participant and not sheer chance, and winning or losing of virtual team created by the participant is also independent of outcome of the game or event in the real world, we hold that the format of online fantasy game offered by respondent No.5 is a game of mere skill and their business has protection under Article 19(1)(g) of the Constitution of India, as repeatedly held by various Courts and affirmed by the Hon'ble Supreme Court," it was held in the case.

Accordingly, the instant petition was dismissed by the Court.

Case Title: Saahil Nalwaya v. State Of Rajasthan & Anr.

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