The online fantasy sports games offered on Dream-11 platform are not gambling/betting.
Online Fantasy Games—whether the same is Betting –Its Classification under GST-- The writ petition has been filed in the nature of a PIL alleging that respondent No.5 Dream 11 Fantasy Private Limited provides a platform to its users for playing sports and games on a virtual platform. The PIL submitted that the users have to pay an amount of Rs.100/-, out of which 20% is retained by respondent No.5, whereas 80% of the remaining balance is transferred towards the winning amount for the game. The game being played is nothing else but “betting” on the cricket team and online fantasy sports games are games of chance, thereby constituting illegal act of gambling/ betting. Further, the respondent No.5 is not paying GST under proper classification, which should be @ 28% and only pays 18% GST. The petitioner relied Circular No.27/01/2018-GST dated 04.01.2018 issued in respect of horse racing and on such basis alleges that GST should have been payable on 100% of the amount received. The respondent department relied the judgment dated 18.04.2017 of Punjab & Haryana High Court in the case of Varun Gumber Vs. Union Territory of Chandigarh, 2017 and the order dated 15.09.2017 passed by the Hon'ble Supreme Court dismissing the SLP, have come to hold that the fantasy games of Dream 11 are games of mere skill.
Held that:- The Hon’ble High Court dismissed the petition and held that the format of online fantasy game is a game of mere skill. Further, regarding its classification under GST, the directed the matter to GST authorities.