Online fantasy sports game is a 'game of skill' and subject to 18% GST: Bombay High Court
[Gurdeep Singh Sachar v. Union of India [2019] 106 taxmann.com 290 (Bombay)]
The petitioner filed Public Interest Litigation (PIL) to initiate criminal prosecution against the Company Dream 11 Fantasy Pvt. Ltd., for conducting illegal operations of gambling/betting
/wagering activities in the name of Online Fantasy Sports Gaming, which attracts penal provisions of Public Gambling Act, 1867.
The High Court observed that in online fantasy sports game conducted by the Company, participants create virtual teams comprising of players similar to real life teams. The participants compete within a time limit against such virtual teams created by other participants. The winners are decided based on points scored, using statistical data generated by the real-life performance of the players. The participants do not bet on the outcome of the match. The result of the fantasy game contest does not depend on winning or losing of any particular team in any real game on any given day.
Further, the High Court also held that success in Dream 11 game arises due to superior sports knowledge, judgment and attention of the participants. Therefore, the Online Fantasy Sports Gaming is a 'game of skill' and not any 'game of chance'. The High Court, thus, held that the Online Fantasy Sports Gaming of the company are not gambling services, hence, 18% GST rate shall be applicable.
[Gurdeep Singh Sachar v. Union of India [2019] 106 taxmann.com 290 (Bombay)]
The petitioner filed Public Interest Litigation (PIL) to initiate criminal prosecution against the Company Dream 11 Fantasy Pvt. Ltd., for conducting illegal operations of gambling/betting
/wagering activities in the name of Online Fantasy Sports Gaming, which attracts penal provisions of Public Gambling Act, 1867.
The High Court observed that in online fantasy sports game conducted by the Company, participants create virtual teams comprising of players similar to real life teams. The participants compete within a time limit against such virtual teams created by other participants. The winners are decided based on points scored, using statistical data generated by the real-life performance of the players. The participants do not bet on the outcome of the match. The result of the fantasy game contest does not depend on winning or losing of any particular team in any real game on any given day.
Further, the High Court also held that success in Dream 11 game arises due to superior sports knowledge, judgment and attention of the participants. Therefore, the Online Fantasy Sports Gaming is a 'game of skill' and not any 'game of chance'. The High Court, thus, held that the Online Fantasy Sports Gaming of the company are not gambling services, hence, 18% GST rate shall be applicable.
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