What is gambling and how is it different from Skill Games under Indian laws?

Gambling or gaming has been defined by the Supreme Court in 1996 as betting and wagering on games of chance only. The Supreme Court in this judgment specifically excludes games of skill, irrespective of whether they are played for money or not, from the definition of gambling. The exact quote from the 1996 judgment is as follows:

“The expression ‘gaming’ in the two Acts has to be interpreted in the light of the law laid-down by this Court in the two1957 cases, wherein it has been authoritatively held that a competition which substantially depends on skill is not gambling. Gaming is the act or practice of gambling on a game of chance. It is staking on chance where chance is the controlling factor. ‘Gaming’ in the two Acts would, therefore, mean wagering or betting on games of chance. It would not include games of skill like horse racing”

Further, the Public Gambling Act, which was the central law on gambling and most subsequent state laws on the subject substantially state that “nothing in this Act shall apply to games of mere skill wherever played”. This is also mentioned in the 1996 Supreme Court judgment with regards Tamil Nadu laws.

“In any case…Section 11 of the Gaming Act specifically saves the games of mere skill from the penal provisions of the two Acts.”

What is a game of skill under Indian laws?

Supreme Court of India in 1996 defined a game of mere skill as follows:

The competitions where success depends on substantial degree of skill are not “gambling” andDespite there being an element of chance if a game is preponderantly a game of skill it would nevertheless be a game of “mere skill”.

We, therefore, hold that the expression “mere skill” would mean substantial degree or preponderance of skill.

Do games of skill enjoy any other protection legally?

Yes, in 1957 the Supreme Court stated that prize competitions which involve substantial skill are business activities that are protected under Article 19(1)(g) of the Constitution of India.

Is it legal to play for cash on Tiranga APP?

The various Supreme Court rulings and the Gaming Acts of India imply the following:

Gaming or gambling means betting and wagering on games of chance. Playing games of skill for cash does not constitute gambling. Games of skill are exempt from the penal provisions of most gambling acts. 
So yes, it is perfectly legal to play for cash on Tiranga APP as long as you are not playing from the states of Assam, Telangana, Andhra Pradesh, Nagaland and Sikkim. As we get more clarity on the laws in these states, we might consider offering our services to residents of these States as well.