Game of luck vs Game of skill: What exactly is the difference between the two? (2024)

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Although the Supreme Court of India and the Indian Government have declared online games like rummy, poker and fantasy leagues as games of skill, people who want online games like these to be regulated believe they still are games of luck.

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Game of luck vs Game of skill: What exactly is the difference between the two? (1)

This article is a part of a larger series on Online Gaming in India. The previous article deals with howbetting apps and fantasy league games have appropriated and corrupted the term, ‘online gaming.’Click here to read the article.

With the advent of online gaming and the perception that it has of gambling, you will see several online gaming brands bombard their potential customers with the phrase “game of skill.” They will also say that as opposed to online games, gambling and betting is a “game of luck” but what exactly do these terms mean?

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Game of luck vs Game of skill: What exactly is the difference between the two? (2)

More importantly, how do they relate to the online gaming industry in general? Why, for some bizarre reasons, do online gaming platforms that let their users play games like poker, rummy or even place bets on fantasy leagues, insist that they are games of skill and not games of luck?

Luck vs Skill: The debate In its most basic form, a game of luck is any game that requires no particular skill for a player to emerge victorious. The results of a game are based purely on chance or luck. Most elements of the game are so random, that it is almost impossible for anyone other than a very seasoned player to see a pattern.

On the other hand, a game of skill is exactly the opposite - a game that requires some skill from the player, be it mental acuity, intellect, some special skill or even brute strength. The chances of a player winning a game depends on their skill, the strategies they use and the experience they have in that game.

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The issue is, that most online games that pose themselves as a game of skill, actually have a major component of luck, or chance involved. On the other hand, it is also true that games like poker, rummy and blackjack, do require some skill and strategy from a user, whether they are a novice or a skilled player.

What does the law say? The stance that the Government of India has taken on this sends mixed signals - on one hand, it has recognised games like online rummy, poker and other e-sports which involve a major bit of luck as games of skill, and is therefore taxing them at 18 per cent. On the other hand, it is looking for ways to tax such games at 28 per cent. According to the most recent GST guidelines, only games of luck are to be taxed at that rate.

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Then, there is the case of fantasy leagues. In any given fantasy league game, the idea is that a player will create an imaginary team, comprising real-life players, and bet on the team to win. While a user may use a bunch of different strategies and analyses to create the team, at the end of the day, they are betting on their team. The act of betting means that there is a bit of luck involved, that a player is taking a chance.

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The Supreme Court of India, on two separate occasions, has ruled that fantasy games, like online poker and rummy, are games of skill, even though several people who want these industries to be regulated and not just taxed, believe that these games are in fact games of luck.

According to a joint report by ASSOCHAM and Ernst and Young, online skill gaming has multiple unique features that led them to the conclusion that the industry deserves a helping hand from the Government for it to flourish. By 2023, the sector’s size is expected to reach $2 billion in India alone. Imagine the tax revenue coming in from an industry that still is in its nascent stage. Online gaming businesses are protected under Article 19(1)(g) of the Indian constitution - the freedom to practise any profession, or to carry on any occupation, trade or business - and operate as legitimate business entities.

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Be that as it may, online gaming is facing a real perception problem, and for some pretty valid reasons. It is extremely difficult for a regular person to differentiate between a game of skill and a game of luck. That is the reason why online gaming platforms, especially the ones that are based on rummy, poker, or any sort of fantasy leagues, often bend over backwards to position themselves as games of skill.

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That is why you will come across arguments from the online gaming lobby that these platforms are just technological products, to facilitate the gaming experience for the end user. They also argue that the operators have no participation in how a particular instance of a game plays out, a claim which has time and again proven, to be false.

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Irrespective of what one’s stance is on whether online games like poker, rummy and fantasy leagues are games of skill or games of luck, what one cannot deny is the fact that these games need to be regulated.

This article is a part of a larger serieson Online Gaming in India. Click here to read the otherarticles that are a part of this series.

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Online PokerOnline Rummygame of skillsFantasy LeaguesOnline Gaming in IndiaGame of Luck

Game of luck vs Game of skill: What exactly is the difference between the two? (3)

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Game of luck vs Game of skill: What exactly is the difference between the two? (2024)

FAQs

Game of luck vs Game of skill: What exactly is the difference between the two? ›

Most elements of the game are so random, that it is almost impossible for anyone other than a very seasoned player to see a pattern. On the other hand, a game of skill is exactly the opposite - a game that requires some skill from the player, be it mental acuity, intellect, some special skill or even brute strength.

What is the difference between games of skill and games of luck? ›

Alternatively, a game of skill is one in which the outcome is determined mainly by mental or physical skill, rather than chance. While a game of chance may have some skill element to it, chance generally plays a greater role in determining its outcome.

What is the difference between skill and luck? ›

Skill is the ability to fire knowledge readily in performance and execution. We know how to do something, and when the moment comes, we can do it. Luck has three specific features — it works for an individual and/or organization, it can be good or bad, and it's reasonable to expect something else could have happened.

What is an example of a game of skill? ›

Backgammon is a game of skill. Strategy can give players advantages, but there is also an element of chance. Alternatively, a game of chance is one where its outcome is strongly influenced by some randomizing device, such as dice, spinning tops, playing cards, roulette wheels, or numbered balls drawn from a container.

Is the game of life luck or skill? ›

There is an element of luck involved in the Game of Life, just as in life itself.

Is casino a skill or luck? ›

The person indulging in game of chance wins or loses by sheer luck and skill has no role to play.

Is poker a skill or luck? ›

Conclusion: Is Poker Based on Luck or Skill? The answer to whether poker is gambling or based on expertise is that it's a little of both. In order to win a hand, a player will need some element of chance, but they'll also need to know exactly what to do with the cards and the situation in front of them.

Which is more important luck or skill? ›

Coming back to the question of Luck and Skill, I would say the decisions could be based on skill, but results are always based on luck. And your skills also depend on how lucky you are. Skill is the choice you make, the decisions you take in those circ*mstances, the preparedness you have to manage the risk side of it.

Is getting rich luck or skill? ›

Almost all of one's success is due to luck. 70% - 89% luck. Don't kid yourself. If you're born in a first world country and just do the average, you're one of the luckiest people on the planet.

Is success a skill or a luck? ›

In fact, one study found that, if success is measured by wealth, then the most successful people are almost certainly those with moderate talent and remarkable luck. In any case, it is impossible to divorce the two. They both matter and hard work often plays a more important role as time goes on.

Is craps luck or skill? ›

There is a simple way to distinguish between games that are skill-based and those that have a material degree of chance that does not involve a chance-skill scale. Games like craps, roulette, and lotteries are easy to categorize as games of pure chance, because the player is betting against random numbers.

What is the meaning of skill game? ›

Skill game has two different meanings: A game which tests a player's physical skills, such as a sport. A gambling game which tests more than a player's luck.

What is the legal definition of game of skill? ›

“GAME OF SKILL AND SCIENCE” means any game of amusem*nt, but not including athletic sporting events, which is participated in by one or more players for any prize, gift or award of anything of value where or when any charge is made by the persons conducting, operating or maintaining such game, or any consideration is ...

What is the difference between skill and luck in card games? ›

Skill: the ability to act with strategic and tactical foresight, planning, or execution. Having control over the outcome. Luck: variables one cannot control, experienced as random and unrelated to skill. Changing or affecting the outcome through means out of players' control.

Is fantasy a skill or luck game? ›

To conclude, whether you're a seasoned player or a newbie testing the waters, it's your skill that will most likely catapult you to the top in the world of fantasy sports. So, buckle up, delve into the statistics, keep track of player performance, and rely on your strategy to win the game.

Is checkers skill or luck? ›

The beloved 8x8 board is home to both checkers and chess and is a staple in many living rooms, parks and even bars. According to a 2020 survey, 77% of adults in the U.S. think checkers is a game of skill rather than luck. So do you need to be a master of strategy to win a checkers game? Most would say "yes."

What defines a skill-based game? ›

As the name implies, skill-based games are games that rely on the player's skill in order to win. In pure skill games, there is no element of randomness and the outcome is entirely reliant on the player's talents and techniques.

Is cards a game of luck or skill? ›

Despite luck's prominence, skill and strategy play crucial roles too. You exert control over the game through decision-making, like choosing when to play certain cards, saving power cards for pivotal moments, or reading opponents to anticipate their moves.

Are board games luck or skill? ›

It depends on the game. There are some games that are entirely skill like chess, and games that are entirely luck like Candyland. There are lots of games that fall somewhere in between.

Is rummy a game of skill or luck? ›

Although, it is a common misconception that card games in India are luck/ chance-based. However, this is not true at all. The Honourable Supreme Court of India has declared that rummy and the different variants of the rummy game are skill-based and not luck-based.

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