Games Of Skill Vs Games Of Chance - A Principles-Based Framework To Recognise The Difference

The distinction between ‘games of skill’ and ‘games of chance’ is not always an easy question to evaluate, and yet the answer has significant legal and regulatory consequences. These could include the legality of the offering, legislative competence, and tax classification, among others.

The question is relevant to many jurisdictions, but in particular to India at present, where the government is trying to evaluate a national-level regulatory framework[1] for games of skill.  The first step in this framework is to distinguish formats that are games of skill from games of chance and this article posits a set of first-level principles that the author believes can help with this evaluation. While responsive to the Indian legal context, these principles are of general import and can be adopted (and adapted) in any jurisdiction that regulates games of skill differently from games of chance.   

This article will examine:

• The Nature of The Problem For Lawyers

• Determining 'Relative Predominance’ Between Skill And Chance

• Classification Of Games (Typology)

• Evaluation Metrics

• A Principles-Based Evaluation Framework