As growing number of people have started using information and
communication technology (ICT), as has also encouraged many
entrepreneurs to launch ICT enabled e-commerce and business ventures.
Few such ventures include online gaming, online gambling, online
poker, online rummy, online games, e-sports websites, etc. Another
related business venture is online fantasy sports websites that have
become very popular across the world.
Fantasy sports have also
become very popular in India. However, the legality
of running and playing online fantasy sports in India is
still a tricky issue. We at Perry4Law
Law Firm are frequently approached regarding managing the
legal issues of online
gaming, online gambling, online poker, online rummy, online games,
e-sports websites, online fantasy sports websites, etc in India and
other jurisdictions. We have suggested all our client to comply with
techno legal compliances associated with these online and virtual
games. We have very categorically told them they should not launch
their websites and business ventures before they comply with techno
legal issues associated with these websites.
Just like any other
online games, entrepreneurs engaged in fantasy sports in India are
also required to comply with certain techno legal requirements. There
is a need to change the mindset of online games entrepreneurs who are
still not serious about legal issues in India. Even if some are
interested in complying with the legal requirements of online gaming
they are ill advised and do not comply with Indian laws properly. The
fact remains that there are a set of legal
compliances for running an online fantasy sports website
in India.
This techno legal
compliance must not be confused with a dedicated law for running an
online fantasy websites in India that is still missing. The problem
stems from the fact that there is no clear regulatory framework that
can be looked upon to decide legality or illegality of online poker,
online rummy, online card games, fantasy sports, etc in India. On the
other hand, regulatory compliances are scattered among different laws
of India and combining them together at a single place is a big
challenge. Unfortunately, online gaming and fantasy sports websites
in India are not complying with these techno legal requirements and
they are on the wrong side of Indian laws. Merely because government
has not taken legal actions against them does not mean that it is
legal to run an online fantasy sports website without complying with
the techno legal requirements.
As on date, online
gaming, online gambling, fantasy sports and online lotteries websites
are not complying with the internet
intermediary compliances and cyber
law due diligence (pdf) requirements prescribed under the
Information Technology Act 2000. Similarly, almost all of the online
poker
websites in India are violating one or other laws of
India. Although online
gaming market in India is booming yet regulatory
compliances cannot be ignored. It seems online gaming and online
gambling industry of India is not considering regulations while
conducting their businesses in India.
Perry4Law conducted a
techno legal audit of various fantasy sports websites operating in
India and we found the same problems with them as have been
discussed above. Almost all of these fantasy sports websites have
used a single cut-copy-paste criteria when it comes to techno legal
compliances and drafting of legal documents of the websites. Clearly,
these online fantasy sports websites are violating the laws of India
and they may be prosecuted very soon. Those using mobile applications
can also be prosecuted
if they fail
to comply with techno legal regulatory norms of India.
Even the banks,
payment
gateways and online
payment merchants, mobile
payment vendors, etc supporting these online poker, online
rummy, online card games and fantasy sports websites can be held
liable for not following cyber law due diligence norms as they have
blindly approved online payment option to these illegal and law
breaking websites. These banks and payment gateways can also be held
liable for money laundering, FEMA violations and assisting in tax
evasion. If such banks, payment
gateways and online payment merchants have already approved
such illegal and law breaking online poker, online rummy, online
games and fantasy sports websites in India, it is in their own
interest to cancel such approval immediately. The banks etc must ask
them to first comply with applicable techno legal compliances and
then support their claims with a proper techno legal consultancy from
a reputed law firm.
If you need a techno
legal compliance and legal consultancy from Perry4Law for your online
games or fantasy sports, please establish a client
attorney relationship so that we can start working upon
your project. Perry4Law wishes all the best to all gaming
stakeholders and entrepreneurs.
