In recent years, Indian fantasy sports games have grown rapidly. As Indian laws and regulations have listed fantasy sports games as legal games, fantasy sports games, a new outlet, has also begun to attract more and more attention from game developers and investors. Today, let ’s talk about how to operate Indian fantasy sports games in compliance.
1. Overview of Indian Fantasy Sports
The number of fantasy sports players has increased significantly since 2016. The number of fantasy sports users in 2016 was only 2 million. By 2017, the number of fantasy sports users reached 20 million, an increase of 1000%. Until 2019, the number of fantasy sports players will grow to more than 50 million, and it is expected that the number of fantasy sports players will reach 100 million by 2020.
In the Indian fantasy sports market, Dream11 occupies 90% of the market, has 80 million registered users, and has the support of investors including Tencent. It is a unique company.
In April 2018, Dream11 completed a $ 100 million Series D financing, led by Tencent. In 2019, Softbank also participated in the investment. Recently, according to the “Financial Graffiti” news, Dream11 is in the final round of financing negotiations, in this round of investment, existing shareholders Tencent may double its investment in the company.
Because Fantasy Sports is legal in India, it has attracted a lot of investment from Chinese companies in India. As early as 2017, the “Paytm First Games” game platform jointly invested by Alibaba ’s AGTech Holdings and SoftBank ’s Indian Paytm company included more than 300 mobile games, and over 40% of the games were “real gold games “, Which contains fantasy sports games.
Second, fantasy sports
Fantasy sports game is an online sports game based on skill. Sports fans can create their own team composed of players in the upcoming cricket, football, basketball and other popular sports games. These virtual teams will be converted into scores on the fantasy sports platform in real time according to the performance of the players on the real stadium. The data scores of each player are added together to become the player’s total score in the current round of competition. After the game is over, the finalists will be awarded the virtual prize pool.
The specific gameplay is:
1. A game is about to be held in reality.
2. Players pay a certain amount of entrance fee to participate in online games, part of which is deducted as the platform service fee, and the remaining part is invested in the fund pool as the reward after the current game.
3. Players select the actual players to be played, and form a virtual team with the same number of sports teams as the actual game, for example, 5 players for basketball and 11 players for cricket / football. After the competition starts, participants must not make team changes.
4. After the real-world ball game is over, the platform converts each player’s actual score into online points, calculates the cumulative score of each player, and then ranks the players accordingly and allocates rewards.
3. Legality of Fantasy Sports in India
Skill games are legal in India and are not subject to Indian gambling legislation, such as the Public Gambling Act of 1867 (Public Gambling Act, 1867). In the case of Dr. KR Lakshmanan v. Tamil Nadu and Ambon, the court held that a game whose success depends mainly on the player ’s superb knowledge, training, attention, experience and proficiency should be classified as skill Sex games.
Fantasy sports is a skill game, because the success of the participants mainly depends on their understanding and statistics of cricket, football, basketball and volleyball, as well as the understanding of players, the performance of players in specific fields, Attention and devotion, and proficiency in the game. The competition also requires contestants to balance the situation with limited resources and make substitutions when appropriate to obtain the highest score. Players participating in fantasy sports competitions believe that they are participating in skill competitions.
4. Legal compliance advice for fantasy sports games
1. Do not use the results of live games as betting elements
Fantasy Sports uses the results of real-life sports events as a reference to calculate the scores of each player. It has uncertainties and opportunities, and is easy to be considered as gambling. Therefore, fantasy sports games cannot completely determine the outcome of the game in the virtual game depending on the team’s victory or defeat in the actual game.
The gameplay needs to increase skills and judgment. For example, players from different teams in the actual game can be selected to form a virtual team. The result of the game is based on the understanding of the game, the team, and the player, adding intelligence and skill elements, and Not entirely based on probability.
2. Real-name authentication
The fantasy sports platform should require users to provide real-name information, such as name, email, bank account, address and other detailed information, before withdrawal. The platform can use the “User Agreement” to restrict the user’s false real-name authentication responsibility. If the player provides fake personal information to the platform, the platform has the right to cancel the player’s qualification to participate in the competition, refuse to grant benefits or prizes and request the return of any prizes.
3. The competition is only open to people living in India
Fantasy Sports is legal in most parts of India, but not necessarily legal in other regions, and may even be considered as gambling. For example, in China, games are considered to be gambling as long as there is an opportunity component. If the fantasy sports game platform is open to Chinese citizens and Chinese citizens pay to participate in the game and withdraw money directly from the platform after the game is won, it will be considered as gambling. Therefore, if you run fantasy sports games in India, it is recommended that the game be open only to people living in India in case of suspected gambling.
4. Special settings for some states
Fantasy Sports is not only open to people living in India, but also pay special attention to these special states of India. In India, Assam, Orissa, and Trangana state prohibit all quiz / gambling games including skill games.
Fantasy sports games are divided into two modes: free games and paid games. Under paid competitions, users can participate in the competition by paying the pre-specified amount provided on the relevant competition page. The amount paid by the player in advance is used for the service fee of the fantasy sports platform and the participant’s contribution to the bonus pool. Participants with the highest total points at the end of the competition will be eligible to win pre-specified prizes or prizes in the prize pool. Paid mode fantasy sports games are banned in India’s no-gambling region.
Therefore, the platform should ask the player to enter personal information before the game. If the personal information entered by the player shows that the player is a resident of Assam, Orissa or Trangana, the platform should prohibit the player Continue any paid games.
5. Sikkim and Nagaland, need to apply for a license
There are no licenses required to operate fantasy sports games in most parts of India. However, Sikkim and Nagaland need to apply for licenses for online games and fantasy sports games. The company operates fantasy sports games in India, and citizens of Sikkim and Nagaland should apply for a license in time.
(1) Matters needing attention in applying for license in Sikkim
The government of Sikkim supervises and permits operators who wish to organize gambling activities in accordance with the Sikkim casino laws and regulations.
①The licensee can only carry out gambling activities in five-star hotels.
②The licensee must be a company incorporated in India and can only operate in Sikkim.
③ Fees: According to the Sikkim Act and Rules, the annual fee is 100,000 Indian rupees (about 1,414 US dollars), and the online game tax imposed on the state government is 1% of the total game revenue.
(2) Notes on Nagaland application license:
① The applicant must be an Indian individual or an independent entity company registered in India;
② The applicant must not have any criminal record;
③ The controlling and decision-making power of the applicant of the main body of the company must be in India;
④ Applicants must complete the application form and pay an application fee of 50000 rupees;
⑤ When submitting the application form, the applicant must submit relevant documents such as RNG certificate, software certificate, business license and tax.
6. Ban minor games
The fantasy sports platform should prohibit minors from participating in any competitions or games on the platform. When players access the platform, users must be required to disclose their true age. If it is discovered that the user is under 18 years of age, they should be prohibited from playing on the platform.
5. Write at the end
Indian fantasy sports are legal, which does not mean that there are no restrictions on investing and operating fantasy sports in India. You still need to pay attention to the laws of India and various states, and you must hire a professional team of lawyers to control risks if necessary.
Source: Beluga Whale