Games of Skill vs Games of Chance in India: Everything You Need to Know
In India, the distinction between games of skill and games of chance isn’t just academic—it determines whether an online game is legal or banned, whether real money gaming is allowed, and even whether tax is applicable. If you’re a gamer, legal professional, or just a curious player, understanding the difference is essential.
This article breaks it down for you with examples, Indian legal context, comparison tables, and answers to frequently asked questions.
What is a Game of Skill?
A game of skill is one where the outcome is predominantly determined by the player’s knowledge, training, strategy, experience, or expertise, rather than pure luck.
Examples:
- Chess
- Rummy (recognized by Supreme Court as skill-based)
- Fantasy Sports (e.g., Dream11)
- Poker (still debated, but argued to involve skill)
- eSports
- Sudoku or quiz competitions
Characteristics:
- Requires decision-making
- Performance improves with practice
- Strategy or memory plays a major role
What is a Game of Chance?
A game of chance is primarily determined by randomness, luck, or probability. The player has little to no control over the outcome.
Examples:
- Roulette
- Slot machines
- Bingo
- Lottery
- Online casino games
- Betting on uncertain outcomes
Characteristics:
- Randomized outcomes (dice rolls, spinning wheels)
- No strategy influences result
- Often involves betting or gambling
Legal Status in India
| Aspect | Games of Skill | Games of Chance |
|---|---|---|
| Legal Status (most states) | Generally legal | Mostly banned |
| Real money gaming | Allowed (with regulations) | Banned in many states |
| Licensing required? | In some cases, yes | Often not licensed |
| Subject to GST? | Yes, 28% on entry fee | Yes, 28% or more |
| Regulation body | Proposed KOGBRA, Self-regulated bodies | State Police or Gaming Acts |
| Supreme Court view | Recognized as legal activity | Considered gambling |
Note: Some states like Telangana, Andhra Pradesh, Tamil Nadu have stricter bans that affect even skill-based games. Always check local laws.
Key Legal Judgments in India
- RMD Chamarbaugwala vs Union of India (1957): Introduced the concept of “games of skill” being protected under the Constitution.
- State of Andhra Pradesh v. K. Satyanarayana (1968): Rummy is a game of skill.
- Varun Gumber vs Union Territory of Chandigarh (2017): Fantasy sports like Dream11 ruled as games of skill.
- Skill Lotto Solutions vs Union of India (2020): Lottery is a game of chance.
State-wise Differences in Regulation
| State | Skill Games Legal? | Games of Chance Legal? | Notes |
| Karnataka | Yes (if licensed) | No | Ongoing legislation (KOGBRA) |
| Maharashtra | Yes | No | Strong regulation |
| Telangana | No | No | Blanket ban |
| Tamil Nadu | Yes (2022 update) | No | Earlier ban overturned |
| Sikkim | Yes | Yes (licensed casinos) | Has regulated gambling |
| Goa | Yes | Yes (land casinos legal) | Tourism-based gambling legal |
How to Tell the Difference
| Criteria | Game of Skill | Game of Chance |
| Outcome Determined By | Skill, experience, strategy | Randomness, probability, external factors |
| Control Over Result | High | Low |
| Improvement With Practice | Yes | No |
| Legality (most states) | Legal | Illegal |
| Real Money Involvement | Allowed (skill-based apps) | Banned (unless regulated) |
FAQs
1. Is Dream11 legal in India?
Yes, it is considered a game of skill and has been upheld as legal by multiple high courts.
2. Is poker a game of skill or luck?
Poker involves both elements, but most experts and some courts in India have recognized it as a game of skill, particularly in long-term play. However, legal clarity varies by state.
3. Is solitaire a game of luck or skill?
Solitaire is mostly a game of skill—especially versions that require memory, strategy, and planning. However, the initial card layout introduces an element of chance.
4. Is baccarat a game of skill?
No, baccarat is widely considered a game of chance, as outcomes rely on fixed rules and random card distribution.
5. Is gin rummy a game of skill?
Yes, gin rummy is a game of skill. It requires memory, calculation, and strategy to win.
6. Is ludo a game of skill?
Ludo involves a mix, but it leans heavily toward chance due to dice rolls. While some strategy is involved, outcomes are not predominantly skill-based.
7. Is mahjong a game of skill or luck?
Mahjong is considered a hybrid, involving both luck (tile draws) and significant skill (strategy, memory, and decision-making).
8. Is poker a game of luck or skill?
Poker is primarily a game of skill when played over the long term, though short-term outcomes may involve luck.
9. Is poker a game of skill?
Yes, most poker variants reward players who understand odds, strategy, psychology, and game theory—making it a skill-based game in most expert and legal views.
10. Is poker a game of skill or chance?
Poker combines both elements, but courts and gaming experts increasingly lean toward classifying it as a game of skill, especially in professional and tournament settings.
11. Can I play real money rummy online?
In most states, yes. But states like Telangana and Andhra Pradesh have banned it.
12. Are betting apps legal in India?
If they involve games of chance or unregulated betting (like on sports or casinos), they are not legal.
13. Is gambling with cryptocurrency legal?
Cryptocurrency is not legal tender in India. Using it for gambling (especially on games of chance) is illegal in most jurisdictions.
14. What is the 28% GST rule for online gaming?
As of 2023–2025, a 28% GST applies on the entire entry amount, not just on net winnings, for all real-money games.
Conclusion
Understanding the difference between games of skill and games of chance is crucial in India’s complex and evolving legal environment. Skill-based gaming is broadly permitted, but heavily taxed and increasingly regulated. Games of chance are often banned outright.
If you’re a user: Stick to licensed, skill-based platforms.