Government Rules & Legal Framework

1. Introduction

Cricket fantasy sports in India have emerged as one of the most popular forms of online entertainment. Millions of users participate in cricket fantasy leagues, where they create virtual teams composed of real players and earn points based on the players' real-life performance in actual matches.

This document outlines the complete government-related rules, acts, guidelines, and best practices for operating and participating in a Cricket Fantasy Platform within India. It aims to provide transparency, awareness, and lawful clarity to users and platform operators.

2. Legal Nature of Fantasy Sports in India

Fantasy sports are recognized under Indian law as games of skill, not gambling. This distinction is critical because gambling and betting on games of chance are prohibited in most Indian states under the Public Gambling Act, 1867.

The Supreme Court of India and several High Courts (including those of Punjab & Haryana, Rajasthan, and Bombay) have declared that fantasy sports require significant skill, judgment, and discretion, and therefore, they do not fall under the category of gambling or betting.

3. Classification Under Indian Law

Fantasy cricket is legally classified as a "game of skill", meaning that success depends more on a participant's knowledge, strategy, research, and analytical ability than on mere chance.

Key Legal Cases Supporting This:

4. Central Laws Applicable

While India does not have a single national law governing fantasy sports, several central acts and regulations apply indirectly:

(a) The Information Technology Act, 2000

Governs online platforms and digital data usage. Platforms must ensure cybersecurity, data protection, and safe digital transactions (if applicable).

(b) The Consumer Protection Act, 2019

Protects users from misleading advertisements or unfair trade practices. Fantasy operators must ensure that marketing material does not mislead players about rewards, gameplay, or outcomes.

(c) The Indian Penal Code, 1860 (Sections 415, 420)

Prohibits cheating or deception. Platforms must ensure transparent scoring, real-time data accuracy, and fair play mechanisms.

(d) The Public Gambling Act, 1867

Prohibits games of chance but excludes games of skill. Fantasy cricket is exempt as long as it maintains its skill-based nature.

(e) The Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021

Requires online gaming intermediaries to exercise due diligence, provide clear terms of service, privacy policies, and mechanisms for user complaints.

5. State-Level Laws and Exceptions

While most Indian states allow fantasy sports, some have specific restrictions on online games involving stakes or competition.

Below is an overview of state-specific rules:

6. Self-Regulatory Bodies

India currently has two primary self-regulatory organizations (SROs) that oversee ethical and operational standards for fantasy sports:

(a) Federation of Indian Fantasy Sports (FIFS)

Formerly known as IFSG, this body works to ensure member platforms follow fair play policies, responsible gaming practices, and user data protection standards.

(b) All India Gaming Federation (AIGF)

An umbrella body that supports the classification of online games of skill and provides a voluntary code of conduct for operators.

7. Advertising and Marketing Rules

Fantasy platforms must follow the Advertising Standards Council of India (ASCI) guidelines, particularly those related to online gaming advertisements.

ASCI's 2022 Guidelines specify:

• Ads must include a clear disclaimer stating: "This game involves an element of skill and no real money participation."
• Ads must not target minors or depict gameplay as a guaranteed source of income.
• Must avoid false claims about winning probability.
• Must display responsible gaming messages like "Play responsibly" or "For entertainment purposes only."

8. GST and Taxation Framework

Since this fantasy platform does not involve real money, GST obligations are limited to app or service revenue (e.g., ad earnings, subscriptions).

9. Data Protection and Privacy

Fantasy platforms must comply with:

• Information Technology (Reasonable Security Practices and Procedures) Rules, 2011
• Digital Personal Data Protection Act, 2023

Key requirements include:

• Obtaining consent before collecting user data.
• Encrypting all personal information.
• Allowing users to delete their accounts and data.
• Not sharing user data with third parties without consent.

10. Responsible Gaming & User Protection

The Government encourages responsible participation. Platforms should:

• Restrict players below 18 years of age.
• Provide self-exclusion options.
• Offer cool-off periods to prevent excessive gaming.
• Display mental health and balance reminders.

11. Cyber Law Compliance

Fantasy cricket platforms are governed by India's cyber law framework under the Information Technology Act, 2000 and the Digital Personal Data Protection Act, 2023. These laws protect users from cybercrimes, ensure safe digital interaction, and enforce accountability on online service providers.

Key Legal Responsibilities for Operators:

Data Security:

All personal data must be encrypted and stored securely on servers compliant with Indian IT standards.

Breach Notification:

If any user data is compromised, the operator must inform the affected users and relevant authorities promptly.

User Verification:

Each player must register with a valid mobile number or email ID. Platforms are encouraged to integrate OTP-based verification to prevent fake accounts.

Fraud Detection:

Systems should monitor suspicious activities like multiple logins, use of bots, or manipulation of scores.

Child Safety:

Platforms must restrict underage users (below 18 years) and use AI tools to detect child accounts.

Complaint Handling:

Each platform must appoint a Grievance Officer to handle user complaints within 15 days, as required by IT Rules 2021.

12. Government Guidelines on Online Gaming

The Government of India, through the Ministry of Electronics and Information Technology (MeitY), has taken steps to regulate online gaming platforms, including fantasy sports.

The rules also require all platforms to:

• Avoid any reference to "wagering" or "betting."
• Ensure that digital assets cannot be converted to cash.
• Display age restriction messages such as "For users 18 years and above."

13. Platform Licensing and Registration

While fantasy platforms are not centrally licensed, states like Nagaland and Sikkim have established frameworks for online skill games.

Nagaland Online Games of Skill Act, 2016

This Act provides the first state-level legal structure for online skill games. Fantasy cricket falls under its definition of "games of skill."

Operators can apply for a license through the Nagaland government if they wish to operate pan-India.

License requirements include:

• Incorporation under the Indian Companies Act, 2013.
• Proof of skill-based gameplay system.
• Regular auditing and transparency reports.
• No linkage to gambling or betting platforms.

Sikkim Online Gaming (Regulation) Act, 2008

Sikkim also issues licenses for skill-based online games. However, the jurisdiction is limited to Sikkim users unless extended by central approval.

14. User Grievance Redressal Mechanism

As per IT (Intermediary Guidelines) Rules, 2021, all fantasy platforms must have a transparent and accessible Grievance Redressal System.

Mandatory Components:

Grievance Officer Appointment:

The name and contact details must be publicly displayed.

Complaint Submission:

Users can file complaints regarding scores, login issues, or rule violations.

Response Timeline:

The platform must acknowledge complaints within 24 hours and resolve them within 15 working days.

Escalation Process:

If a complaint remains unresolved, it can be escalated to the self-regulatory body (FIFS/AIGF) or MeitY.

Transparency Report:

Platforms are advised to publish annual transparency reports on complaints received and resolved.

15. Player Protection and Ethical Gameplay

The government encourages online gaming platforms to integrate ethical design principles to protect users.

Core Player Protection Rules:

• Age verification (18+ mandatory).
• Limit gameplay hours to prevent excessive use.
• Offer self-exclusion and session reminders.
• Ban the use of third-party automation tools or multiple account manipulation.
• Allow users to delete their accounts anytime.
• Implement anti-addiction pop-ups like "Take a break" or "Play responsibly."

Fair Play Guidelines:

• Transparent Scoring: All points must be based on verified match data.
• Randomization of Leagues: To prevent coordinated gaming or collusion.
• Audit Trails: Keep logs of all actions for review.
• No Discrimination: Equal opportunity for all participants regardless of location or background.

16. Data Retention and Cyber Security Rules

Fantasy cricket operators must ensure data privacy, storage, and security as per Indian IT standards.

Data Retention Policy:

• Store user data only for as long as necessary for service.
• Do not share with third parties without explicit consent.
• Backup data must be securely encrypted.
• Delete inactive user accounts after a defined period (e.g., 12 months).

Cyber Security Measures:

• Use HTTPS and SSL encryption.
• Implement firewalls and intrusion detection systems.
• Regularly audit for vulnerabilities.
• Train staff on data handling ethics.
• Report security breaches to CERT-In (Indian Computer Emergency Response Team).

17. Dispute Resolution and Jurisdiction

In case of disputes between the user and the platform:

• Users should first contact the Grievance Officer.
• If unresolved, the issue may be referred to arbitration under the Arbitration and Conciliation Act, 1996.
• The place of arbitration shall be New Delhi, India, unless otherwise stated.
• Indian courts shall have exclusive jurisdiction.

18. Future Government Regulations

India's online gaming sector is evolving rapidly. The government is working toward a centralized regulatory framework for all skill-based online games.

Expected future measures include:

• Mandatory registration of all online games with MeitY.
• Stricter compliance checks for user protection.
• Central code for advertising, content, and grievance redressal.
• Digital ID systems for players.
• Enhanced cybersecurity protocols.

19. Final Legal Disclaimer and Compliance Notice

This document summarizes the current government rules and legal framework for cricket fantasy in India.

User Acknowledgement:

By participating, users acknowledge that:

• They understand and accept all rules.
• They are above 18 years of age.
• They agree to follow fair play and ethical guidelines.