How to Start a Fantasy Sports Business Legally in India

Fantasy sports in India have seen exponential growth—but success doesn’t come without legal clarity. Understanding and complying with Indian laws is essential to building a sustainable fantasy sports platform. If you're wondering how to legally start a fantasy sports business in India, this guide outlines the critical legal steps and frameworks you must follow.

1. Understand the Legal Nature of Fantasy Sports in India

How to check if fantasy sports are legal in your state?

Fantasy sports are considered a game of skill, not chance, as per the Supreme Court and various High Courts in India. However, legality depends on individual state laws. For instance, states like Tamil Nadu, Andhra Pradesh, Telangana, Assam, and Odisha have banned real-money gaming, even if it’s skill-based.

Do This:

Check the laws of the specific Indian state where your users will be participating. Engage a legal expert to navigate state-wise compliance.

2. Comply with the Public Gambling Act, 1867

The Public Gambling Act prohibits running a “common gaming house,” but fantasy sports that involve skill are exempt.

Tip:

Structure your platform around skill-based contests (like player selection, match predictions, and performance analytics) to stay compliant.

3. Leverage Court Rulings in Your Favor

How to legally protect your fantasy sports business using court judgments?

Landmark rulings (like Varun Gumber vs Union Territory of Chandigarh) have stated that fantasy sports involve skill and therefore are legal.

Use This:

Mention favorable judgments in your terms and conditions to strengthen your legal standing.

4. Get a Certification from the All India Gaming Federation (AIGF)

How to establish trust and transparency?

Register with the All India Gaming Federation or Federation of Indian Fantasy Sports (FIFS) to follow industry best practices and display legitimacy.

Benefits:

Access to guidelines and legal frameworks
Certification badge for your platform
Added trust among users

5. Adhere to IT Rules & KYC Norms

If your fantasy platform involves money deposits and withdrawals, you must follow:

Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021
KYC norms under RBI guidelines
Data protection practices under the upcoming DPDP Act

Action Point:

Use verified payment gateways, secure encryption, and transparent KYC processes.

6. Include Legal Disclaimers & Responsible Gaming Policies

How to build credibility and avoid legal pitfalls?

Add legal disclaimers about the risks involved and promote responsible gaming behavior. Many successful apps have a dedicated “Play Responsibly” page.

Key Elements:

Age restriction notice (18+)
Responsible gaming resources
Self-exclusion features

7. Keep Up with Regulatory Changes

With the central government taking steps to regulate online gaming, new frameworks may emerge under MEITY and MIB.

Pro Tip:

Regularly review new notifications, especially from:

Ministry of Electronics and IT (MeitY)
State legislative updates
Self-Regulatory Bodies (SRBs)

Conclusion: Legally Build a Fantasy Sports Platform in India

Starting a fantasy sports business in India can be highly rewarding if you follow the legal roadmap. Make sure you:

Verify state laws
Design skill-based contests
Get certified by AIGF or FIFS
Implement robust KYC and IT compliance
Promote responsible gaming

Need help launching your legally compliant fantasy sports app?

Vinfotech specializes in building custom, regulation-ready platforms with expert legal insights.

IN A NUTSHELL

As per the Indian Law, Fantasy Sports is permitted all over India except few states namely, Assam, Sikkim, Nagaland, Andra Pradesh, Odisha, Telangana and Tamil Nadu.
NITI Aayog advises the OFSP’s to maintain statistical data of all their players and submit them to a self-regulatory body FIFS.
Fantasy sports companies need to restrict users under the of 18 to engage on their platforms.
OFPS need to maintain transparency about every process and rules of the game with their users.

About Vinfotech

Vinfotech creates world’s best fantasy sports-based entertainment, marketing and rewards platforms for fantasy sports startups, sports leagues, casinos and media companies. We promise initial set of real engaged users to put turbo in your fantasy platform growth. Our award winning software vFantasy™ allows us to build stellar rewards platform faster and better. Our customers include Zee Digital, Picklive and Arabian Gulf League.