To understand India's gaming and gambling scene, it is important to understand the relationship between technology advances and legal frameworks. This study focuses on the legal aspects of gaming and gambling in India, particularly on how software is protected under intellectual property law.

India is a federal state with a complicated legal system that includes laws from both the federal and state levels. Conventional legislation, such as the Public Gambling Act of 1867, deals with land-based gambling; however, the Information Technology Act of 2000 and its modifications control the digital sphere, posing concerns regarding the protection of gaming software's intellectual property.

The gaming industry, which is expanding quickly and is one of the fastest-growing in the world, is also having an impact on the Indian gaming market. The Internet and technology are advancing, which is one of the main reasons why the gaming industry is flourishing globally. Both the publishers and producers of video games rely heavily on intellectual property rights. There are countless instances of intellectual property infringement in the gaming sector, including game copyright violations and popular game replication.

In a few years, the Indian gaming market will surpass that of the United States due to its continued strong growth. The Indian gaming industry was valued at $930 million in 2020 and is projected to reach $3750 million by 2024. We may infer from the data that the largest fantasy sports market globally is thought to be in India.

The Significance of Gaming and Gambling Regulations
There is an increasing need for standard gaming rules and regulations as the gaming sector in India continues to grow at a rate of two levels per year. People's distance from the internet shrank in tandem with the pandemic-induced social separation, which made it clear to the government and developers that technology and the regulations governing it needed to improve. The government is starting to see the potential in animation, gaming, and comics (AVGC) due to the growth of the gaming business and its technical aspects.

There will be a 12% increase in gamers between 2021 and 2022. The gaming market in India was valued at $2.6 billion in 2022 and is projected to expand at a compound annual Growth Rate (CAGR) of 27% to $8.6 billion by 2027, resulting in a significant increase in the demand for online gaming attorneys in India.

The legal framework surrounding gaming in India is becoming more and more important. Concerning various federal and state legislation, our specialists' broad skill set assists customers in navigating the legal and regulatory landscape while starting a firm in this sector.

Legal Framework
The Public Gambling Act, 1867 (PG Act)
The PG Act is the legislation that governs gambling in India. The primary legislation governing gaming and gambling activities inside each state is the PG Act; however, several states have passed their laws. It's interesting to note that, according to Section 12 of the PG Act, skill-based games are exempt from the Act. The PG Act expressly states in Section 12 that it applies to any game of simple skill.

The Information Technology Act, 2000(It Act)

The internet gaming sector is not governed by the IT Act in and of itself. However, gambling is prohibited by the IT Act. Under sub-section (1), clauses (z) and (zg) of sub-section (2) of section 87 of the IT Act, 2000 read with Section 79(2) of the IT Act, Rule 3(1)(b)(ii) of the Information Technology (Intermediaries Guidelines) Rules, 2021, mandates that "intermediaries," including social media intermediaries and significant social media intermediaries, not host or transmit any content that, among other things, relates to or encourages gambling.

Constitution Of India

The Indian Constitution has enshrined gambling and betting in the States List (Entry 34, List II of Seventh Schedule), granting each state the sole authority to adopt laws about gambling inside their borders. The Public Gambling Act of 1867 and the majority of State laws were passed before the advent of internet gaming.

State Laws
In India, state-level rules govern casino games, and these laws also apply to digital versions of the games. Since casino games are games of chance, they are prohibited under the majority of state-level anti-gambling laws (also known as "State Gaming Laws"). Nonetheless, the Sikkim Online Gaming (Regulation) Act, 2008 ("Sikkim Act") allows the state of Sikkim to licence the offering of casino games like blackjack and roulette—but only if the games are made available over intranet terminals. The authority under the Sikkim Act is the Finance, Revenue and Expenditure Department.

Through state-specific legislation, the Indian states of Sikkim in the northeast, Goa in the west, and Daman and Diu in the west all govern land-based casino games. The Goa, Daman and Diu Public Gambling Act, 1976 (the "Goa Act") governs casino operations in Goa, Daman, and Diu. The Sikkim Casinos (Control and Tax) Act, 2002, often known as the "Sikkim Casino Act," governs casinos in the state of Sikkim.

Recent Cases
Shri Varun Gumber vs. Union Territory of Chandigarh and Ors. [CWP No. 7559 of 2017]

The Punjab and Haryana High Court (PHC) ruled that, among other things, a user's ability to exercise superior knowledge, judgement, and attention is what determines success in Dream11, and that Dream11 games are free from the PG Act's requirements because they demand a significant amount of skill, or a "preponderance of skill."

The PHC held that the game provided by Fantasy Dream11 was based on skill and did not qualify as gambling because it relied on the Hon'ble Supreme Court's ruling in K.R. Lakshmanan v. State of Tamil Nadu [(1996) 2 SCC 226], where it was held that horse racing required the element of skill, judgement, and discretion of the player.

An appeal against the PHC's ruling was filed with the Hon. Supreme Court of India. The Supreme Court, however, summarily dismissed the appeal and maintained the legality of the ruling.

Saahil Nalwaya v. State of Rajasthan & Anr. [D. B. Civil Writ Petition No. 2026/2021, decided on July 22, 2021]

Article 19(1)(g) of the Indian Constitution grants protection to businesses that offer online fantasy sports in accordance with the Federation of Indian Fantasy Sports Charter. Accordingly, the petition asking the State Government to forbid such activities would violate both Article 14 and 19(1)(g) of the Indian Constitution.

Junglee Games India Pvt. v. State of Tamil Nadu [2021 SCC Online Mad 2762]
The Honourable Madras High Court ruled that as games based on "preponderance of skill" are protected by Article 19(1)(g) of the Constitution, the State's prohibitions on organising or participating in such games must pass the proportionality and reasonableness standards.

Dream 11: On the fantasy sports website Dream11, users may assemble virtual teams that are modelled after real-life athletes and score points according to how well those players perform in live games.

Debatable has been the legality of fantasy sports, such as Dream11. While some jurisdictions contend that it incorporates a chance element, others view it as a game of skill and as such, legal.

The Punjab & Haryana High Court decided in 2019 that Dream11 gameplay does not qualify as gambling because it requires a significant amount of skill.

Gaming Laws And IPR In India

Gaming laws and intellectual property rights (IPR) are governed by several laws and regulations in India. The Patents Act of 1970, the Copyright Act of 1957, the Trade Marks Act of 1999, and the Designs Act of 2000 are the main laws in India that regulate intellectual property rights. The principal legislation governing gaming in India is the Public Gambling Act of 1867 and the Indian Contract Act of 1872. Here are several Indian IPRs and gaming laws.

The Copyright Act of 1957 protects original works of authorship, encompassing video games. Since video games are categorised as software, copyright regulations apply to them. Video game developers are shielded by this law from unlawful use, dissemination, and duplication of their creations.

Original literary works that are expressed in material form are protected by a copyright. Because computer programmes (software) use source and object codes to express themselves, they are regarded as literary works. The actual components of a computer programme are its source and object code, which are shielded by copyright laws.

Patents Act, 1970: Indian patent laws are governed by the Patents Act, 1970. For their original, non-obvious innovations with practical industrial uses, inventors are awarded patents. In the gaming sector, patents are available for technological advancements including new software and hardware.

Trade Marks Act, 1999: Indian trademark rules are governed by the Trade Marks Act, 1999. A trademark is a unique sign, term, or phrase that is used to identify and set one company's products or services apart from another. Gaming companies have the option to register their trademarks and emblems to stop unauthorised use.

The Designs Act of 2000 protects the unique styles of gaming accessories including controllers and hardware. Gaming firms can now use this regulation to prevent illegal use and copying of their unique designs.

The Public Gambling Act of 1867 prohibits the vast majority of Indian gambling activities. Lotteries and horse racing are two examples of gambling that is legal under specific restrictions. Various Indian states also allow various forms of online gaming, including online rummy and poker. These prerequisites include getting a license and following specific laws.

Conclusion
There is a complicated environment at the nexus of gaming, gambling, and intellectual property law in India that needs to be carefully considered. The legal system must change to meet new issues in software protection as intellectual property as technology advances. The continuous discussions about whether gaming and gambling are lawful highlights the need for a nuanced strategy that strikes a balance between consumer protection, innovation, and regulatory issues.

To successfully navigate this environment, legislators, attorneys, and industry participants must work together to create strong regulations that support fair competition and responsible gaming while also defending the intellectual property rights of software developers.

The future of the gaming and gambling sector in India will ultimately depend on how legal issues are resolved and how a comprehensive regulatory framework is established. Effective legislative measures that handle intellectual property issues can help the nation create a dynamic and legally sound environment that promotes creativity and compliance, allowing gaming, gambling, and intellectual.