Indian Government Argues Betting Turns Games of Skill into Chance

The Supreme Court of India saw the Indian government and online gaming companies debate whether games of skill, such as chess, rummy, and bridge, can “metamorphosize” into games of chance if betting is involved. 

The government representatives argue that this makes them games of chance, and that any earnings should be subject to the Goods and Services Tax (GST).

Appearing before a Bench of Justices, J.B. Pardiwala and R. Mahadevan, Additional Solicitor General N. Venkataraman represented the government, stating that games of skill would remain as such until bets or wagers are placed. 

Indian Government Claims Betting Transforms Game Character

Mr. Venkataraman said that betting on games of skill is statutorily considered gambling, which is the case with any type of game when wagering is included.

“Even if the outcome depends on skill, the element of uncertainty makes the act of staking money a form of wagering,” he said, as reported by The Hindu.

Senior advocate A.M. Singhvi, representing one of the gaming companies, stated that the fundamental issue in the case is the “ancient exception” given to games of skill. 

Mr. Singhvi noted that five judges and seven judges’ Benches of the constitutional courts have found that games of skill should not be categorized as chance-based.

“Is the government saying that in chess, the moment I put money on it, the game metamorphosizes from a game of skill into a game of chance? The character of a game cannot be so changed,” he argued.

Gaming Industry Defends Skill-Based Classification

The debate follows a parliamentary exchange held in late March. During the exchange, Union IT Minister Ashwini Vaishnaw spoke on individual states’ jurisdiction over gaming and gambling laws.

The event followed an inquiry by DMK MP Dayanidhi Maran, who questioned the central Government’s stance on online gaming.

In January 2025, the apex court ordered the halt of the operation of show-cause notices worth ₹1.12 lakh crore. The notices were issued under GST proceedings against online gaming firms. The core issue revolves around whether GST applies to online gaming.

The government claims that 28% GST must apply to the total contest entry amount, meaning that the entire prize pool is subject to the tax. Gaming companies argue that GST should only be applied to the platform fees or commission, as many games are games of skill, not chance.

In 2023, the GST Council recommended that online gaming, casinos, and horse racing be taxed uniformly, making no distinction between games of skill and games of chance.

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 The Supreme Court of India saw the Indian government and online gaming companies debate whether games of skill, such as chess, rummy, and bridge, can “metamorphosize” into games of chance if betting is involved.  The government representatives argue that this makes them games of chance, and that any earnings should be subject to the Goods
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