Legality

1. Are Game of skill for stakes legal in India?

The jurisprudence on the legality of skill-based games in India is derived from the principles set out in the public gambling act,1867("PGA"), Rajasthan Public Gambling Ordinance ,1949 section 12 and the price Competition act' 1955 and the various state legislations on the subject. section 12 of the PGA provides that game of mere skill are exempt from the application of the PGA. The Hon'ble Supreme court of India and various high courts in India differentiated between game of skill played casually and game of skill played for stakes and have opined that a game of mere skill is game in which the element of skill predominates over the element of chance. no penalty can be imposed upon a person for playing such game of skill.

2. Rajasthan Public Gambling Ordinance ,1949 section 12 :-

Ordinance not to apply to certain sport :- Nothing in this ordinance shall be deemed to apply to any game of skill other than a game based solely on chance or game based on combination of combinations and skills, unless. Unless not is played in a normal gaming house.
In Dr. K.R. Lakshmanan v. state of Tamil Nadu,(1996) 2 SCC 226,

The supreme court laid down a basic principle for classification of games ; a game of chance is one in which the element of chance predominates over the element of skill and a game of skill is one in which the element of skill predominates over the element of chance and held that betting on horse racing was a game of skill since factors like the fitness and skill of horse, the weather conditions, the skill of the jockey must be accounted for by a person placing a bet.
In R.M.D Chamarbaugwala v. union of India, (1957) 1 SCR 930,

The Hon'ble supreme court held that competitions where the success depends upon a substantial degree of skill are not 'gambling' and further observed that 'games of skill' are business activities and shall be afforded the protection under article 19(1)(g).

In State of Andhra Pradesh v/s K. Satyanarayana AIR 1968 SC 825, the SC specifically tested the game of rummy on the principal of skill versus chance and held that rummy was not a game entirely based on chance like the ‘three-card’ game (i.e., ‘flush’, ‘brag’ etc.), which were games of pure chance. It was held that Rummy was a game involving a preponderance of skill rather than chance.

Pertinently, as per the Seventh Schedule to the Constitution of India (Entries 34 and 62 of List II), the respective state governments have been authorized to make laws on betting and gambling. In furtherance to these powers, various States have enacted legislations that allow the activities of paid games of skill, whereas some states prohibit the activities pertaining to games of skill for stakes (Assam, Tamil Nadu, Telangana, Andhra Pradesh, and Odisha).

Recently, in D. Siluvai Venance v/s State represented by The Inspector of Police & Ors., Crl. OP. (MD) No. 6548 of 2020 and Crl. MP. (MD) 3340 of 2020, the Madurai bench of the Madras High Court noted that the PGA, various state gambling acts and decisions (barring a few) are only in respect of physical premises and do not refer to virtual gaming platforms. Post this order, the Tamil Nadu Gaming and Police Laws (Amendment) Ordinance, 2020 was promulgated, amending the Tamil Nadu Gaming Act, 1930 which now prohibits all games (including games of skill) for stakes.

The Andhra Pradesh Gaming (Amendment) Ordinance, 2020, amended the Andhra Pradesh Gaming Act, 1974 and now prohibits all games (including games of skill) played for stakes.

Additionally, certain states have regulated the activities of paid games of skill and chance by requiring the operator to obtain necessary licenses from the respective state governments (Sikkim, Nagaland, and Meghalaya).

3. Is the gameplay offered on Trade The Game application legal in India?

Fantasy Stock/ Crypto gaming is a game of skill since it requires the player to possess psychological skills, knowledge of statistics & probability and strategizing skill. These include creating a portfolio/ team based on the performance and value of the stock/ cryptocurrency available within the standardized

benchmarks set within the application by analyzing past data, graphs, statistics and formulating strategies to build a winning portfolio / team to compete against other users in various gripping contests on the Trade The Game. The winners on the Trade The Game application are determined based on the outcome of a user’s accuracy, analysis and preponderance of skill. The fantasy stock and cryptocurrency game and contests offered by Trade The Game are classified as, and fall within the purview of ‘games of skill’, as per principles determined under applicable laws and precedents set by the hon’ble judiciary of India. Trade The Game is a gaming platform operating as a legitimate business concern, outside the purview of gambling or betting related activities in any manner. Recently in Saahil Nalwaya v/s state of Rajasthan & ors. (D.B.Civil writ petition no. 2026/2021), The Hon'ble High court of judicature for Jaipur for Jaipur Bench At Rajasthan (D.B.) held that the case of (D.B. Civil writ petition No. 20779/2019) Ravindra Singh Choudhary v/s union of India & ors. vide

order date 16.10.2020 already considered and decided, which has been passed by this court by placing reliance on various judgments rendered by the Hon'ble Supreme court.

The Hon'ble High court Rajasthan (D.B. civil writ petition no. 2026/2021) held that offering of online fantasy sports in accordance with the charter of the FIFS has already been judicially recognized as a business and consequently, entitled to protection under Article 19(1)(g) of the constitution of India and the prayer seeking directions to the state government to prohibit the same would be opposed to Article 14 and 19(1)(g) of the constitution of India.

Trade The Games is a product of Technoloader IT Services Pvt. Ltd. , company is incorporated on 24th November 2021 under the Companies Act, 2013, (18 of 2013) and that the company is limited by shares. The corporate Identify Number of the company is U72900RJ2021PTC078303. Company GSTIN is 08AAJCT0201C1ZZ and registered company address is Ground Floor, Plot No 212, Paschim Vihar, Jagdamba Marg, Vaishali Nagar, Jaipur, Rajasthan, 302021.