Staking money in skill games is gambling: Indian Govt tells Supreme Court
The union government of India told the Supreme Court that putting money on games of skill amounts to gambling, in relation to the 28 percent Goods and Services Tax (GST) imposed on gaming companies. The ongoing hearing, which began on 5 May, is estimated to have a financial impact of ₹2.5 lakh crore ($30.1 billion).
Government: RMG platforms actively enable gambling
Representing the union government, Additional Solicitor General (ASG) N. Venkatraman argued that real money gaming (RMG) platforms are not just neutral technology providers. Instead, he said they are “active participants” in the gaming process, enabling cash-based play through systems for deposits and withdrawals, and by setting the rules of the games.
As per a report by Storyboard18 Venkatraman stated, “We have no issue with games of skill. But when a person wagers on the outcome, even in a game of skill, it amounts to gambling.” According to him, the element of money and uncertainty makes even skill-based play fall under the category of gambling.
Wagering is gambling, even with skill
Union government highlighted that the act of staking money on uncertain outcomes is the essence of wagering—and therefore, gambling.
Venkatraman explained that while fixed entry fees for tournaments may be allowed, betting money on outcomes, including in fantasy sports, crosses into gambling. “In fantasy sports, players make decisions using skill, but the result depends on unpredictable live matches,” he added.
RMG industry challenges GST rules
The gaming companies are challenging the government’s interpretation of Rule 31A of the Central Goods and Services Tax (CGST) Rules. This rule applies 28 percent GST on the full face value of each bet. Industry leaders argue that this rate should apply only to traditional gambling, not to games of skill like rummy, poker, or fantasy sports.
Supreme Court hearing continues until 9 May
The case is being heard by a division bench of Justices JB Pardiwala and R. Mahadevan. The is expected to finish hearing arguments by 9 May. A judgment is likely in the following months.
This verdict is expected to shape the future of India’s online gaming landscape, which has seen massive growth but now faces increasing regulatory and tax scrutiny. The outcome could influence everything from investor sentiment to compliance strategies across the sector.
The stakes are high for both the government and the industry, as the court’s ruling will clarify the legality and taxability of real money games in India.
