Gambling or Game of Skills? – Case Study of Dream11

“I bet ₹100 that it will rain today!”

“If you win the game, I will pay you ₹40 but if I win the game you are going to pay me ₹50. Agree?”

Did you ever come across these similar statements? I am sure we all have even done these acts on very small scale; it is super fun. However, when this fun gets converted into passion it brings few immensely bad habits which get converted to addiction resulting in loss of name, fame and money. Since these activities on a large scale are socially undesirable government has banned it to a great extent.

Gambling:

Gambling, in simple words, is taking risky actions in hope of a desired result. It has three elements: price, risk, and consideration.

In every country gambling is regulated by a dedicated body because uncontrolled gambling can cost heavily. Similarly, in India gambling is a state matter i.e. only states are entitled to make laws on gambling activities for their respective states. The Public Gambling Act of 1867 prohibits managing public gambling house. In case of non-compliance, fine of ₹200 can be imposed or there can be imprisonment of up to 3 months. Additionally, the Act prohibits visits to gambling houses, non-compliance of which imposes fine of ₹100 or results in imprisonment of up to one month as penalty. Apart from this, Maharashtra has banned gambling under Bombay Wager Act and some states like Telangana and Andhra Pradesh have banned only online gambling.

As I write about gambling, a very similar gaming practice comes to my mind.

“Khelo dimag se, Dream11 pe sab khel rahe hai dimag se!”

Did the bell inside your head make some noise after reading this extract of an advertisement? I am sure all the outdoor games lovers know well about Dream11. For those who don’t know, let me explain that Dream11 is an Indian fantasy sports platform that allows users to play outdoor games online. Dream11 entered into the “unicorn club” in April 2019. It became the first Indian gaming company to do so.

Dream11 is an online game where users can create a virtual team of real-life players and then earn points on the basis of performances of those players in real matches. The one who scores the maximum points attains the first rank on the leader-board. This game offers free and paid contests. A user needs to pay a certain fee to join a contest and can win real cash. As quoted by experts, it is a game of skills. Before moving any further let us know what exactly is game of skills.

Game of Skills:

A game of skill means a game in which a player spends his/her time in learning, practising and refining his skill to perform well in the particular game. Success depends upon the training, attention, experience and superior knowledge of the player.

Now, since we know difference between gamble (a game of chance) and a game of skill, let us analyse what dream 11 is? A game involving skill or a gamble?

Arguments that portray it as a gambling game:

According to professionals, since athlete performance can vary on a regular basis, players are essentially gambling on the performance of individual athletes during a given game, rather than managing their team regularly across a season. Most importantly, it involves price, risk and consideration. Price is there in the form of entrance fee and consideration in the form of real cash prize. There is a lot of risk involved. According to studies on similar gaming platforms, only 1.3% of the players are winners and 80% of them are losers. On one hand, we know that those 1.3% players use heavily customised algorithms to win, whereas on the other hand, companies involved in similar gaming promise it to be common man’s game.

Facts in favour of it being a game involving skills:

In the year 2017, a case was registered against the company in an Indian High Court. It was highlighted that playing the Dream11 game involves judgement, superior knowledge and attention. The Court also held that "the element of skill" is the predominant factor determining the outcome of the game.  Act of preparing a daily fantasy team requires knowledge of the sport, its individual players and their performance at a particular moment in time, and the ability to choose suitable players. Therefore, it is an activity of skill. These types of games are often won by a small group of skilled professional players, who employ elaborate statistical modelling and automated tools that manages many entries at once and identify the weakest opponents.

Sources:

1. https://www.britannica.com/topic/gambling
2. https://en.wikipedia.org/wiki/Gambling
3. https://en.wikipedia.org/wiki/Daily_fantasy_sports
4. https://youtu.be/Mq785nJ0FXQ
5. https://en.wikipedia.org/wiki/Gambling_in_India#:~:text=Gambling%20in%20India%20varies%20by,including%20lotteries%20and%20horse%20racing.
6. https://en.wikipedia.org/wiki/Dream11
7. https://get.dream11.help/hc/en-us/articles/360021415532-What-is-a-game-of-skill-under-Indian-laws-