Fantasy Cricket – Gambling in Disguise

What is Gambling?

Gambling is the wagering of money or something of value (referred to as “the stakes”) on an event with an uncertain outcome with the primary intent of winning money or material goods. Gambling thus requires three elements be present: consideration, chance and prize. The outcome of the wager is often immediate, such as a single roll of dice, a spin of a roulette wheel, or a horse crossing the finish line, but longer time frames are also common, allowing wagers on the outcome of a future sports contest or even an entire sports season.

In India we have the Dream11 which offers Fantasy Cricket, Kabaddi and Football.

What is Fantasy Sports?

Fantasy Sports is a sort of game in which you are allowed to select teams before the start of a real match and you are awarded points/cash based on the team selected, the players performance and real match’s result. There is a entry fee to enter into the cash contest and also there is a detailed points chart. The winnings depend on the type of match and ranges from few thousands to INR25,00,000.

 

 

These fantasy sports companies claim that what they offer is completely legal because, as per government laws, fantasy sports is categorised under Game of Skills and not under Gambling/Game of Chance. In India, only the State of Assam has no defined law on such games and thus Dream11 does not offer its services to residents of Assam.

As per the website “Dream11 Games – Games of Skill

In order to achieve success at the Dream11 Games a user must have knowledge (gathered through systematic research), attention, experience and adroitness. The ‘skill’ element of the Dream11 Games is found primarily in two aspects: drafting and playing. Users are subject to several carefully structured constraints and limitations in the game rules (which minimizes the instance of chance dictating the outcome) and are required to engage in a qualitative assessment of skills and relative worth of each player based on his strengths and weakness in light of the scoring criteria used by Dream11 and make a theoretical evaluation of the player’s prospective accumulated statistics over the course of the round at the time of drafting a fantasy team in a Dream11 Game. In order to succeed in the Dream11 Games, a user must apply his/her mind and judge the likely performance of each of his players in upcoming matches, and further the user is required to invest time and effort in analysing and tracking the performance of his players and other eligible players. For these reasons, the determination of the outcome in Dream11 Games is based on the predominance of skill over chance and it is our belief that the Dream11 Game is conclusively a game of skill in the eyes of the law. Accordingly, the Dream11 Games do not amount to ‘gambling’ under central and most state gambling statutes in India.”

Also this is from the FAQ’s from the website

“1. How do I win cash?

Your rank in a cash contest is decided based on the points your team earns during the live match. If your team finishes amongst the winning ranks of that cash contest, you’ll be declared a winner in the contest. We’ll credit the winnings in your Dream11 account, depending on the amount that you’ve won.”

Indian Law on Gambling

You would be surprised to know that our gambling laws are as old as 1867. We have the Public Gambling Act, 1867 which governs all kind of gambling activities in India. Obviously it does not have any provision on Internet Gambling.

As per the Act, “The expression “gaming” in the two Acts has to be interpreted in the light of the law laid-down by this Court in the two1957 cases, wherein it has been authoritatively held that a competition which substantially depends on skill is not gambling. Gaming is the act or practice of gambling on a game of chance. It is staking on chance where chance is the controlling factor. “Gaming” in the two Acts would, therefore, mean wagering or betting on games of chance. It would not include games of skill like horse racing.”

There are no elaborate definitions on Games of Skills or Games of Chance. And this is the loophole which companies like Dream11 exploit. Even rummy is considered a game of skill as per the act.

Right now the only Law which marginally governs online gambling is the Information Technology Act, 2000 which has only one provision related to online gambling and it is in no way adequate to regulate such a complicated offence as gambling.

In Conclusion

Till India does not have any concrete law on gambling (specifically Online Gambling) companies like Dream11, Online Poker are going to pop-up because India is considered potentially the largest market for Online Gambling. We just need to be careful with such companies.

The Flow of Funds in India

An alternative lens to understand economic transformation

At its heart, capitalism is a financial system. Every entity in the economy, whether an individual, a household, a business, or a state institution faces monetary constraints in its operations and must constantly balance the exigencies of cash inflows and cash outflows. Thus, money flows, including the accumulation of debt and the acquisition of financial assets, are the very lifeblood of the system. Despite this fact, most of our understanding of the macroeconomy is based on the national accounts system which foregrounds current expenditure by various sectors. While highly useful, such an approach often misses or obscures underlying monetary relations. To provide a sharp example, if one is buying a second-hand property, perhaps one of the most important financial transactions in one’s life, this will not show up in the national accounts because the property has already been accounted for when it was originally built and there is no current expenditure associated with it.

Finance Ministry’s Vision

Given such a divide, an alternative approach was originally suggested in 1947 by Morris Copeland, who promoted the Flow of Funds (FoF) account approach. This is an accounting system created to capture the pattern, duration and timing of money flows within the economy. Examining these flows of funds provides a simple but effective portrait of the nature of financial claims in an economy, and acts as a very useful adjunct to the national income accounts in understanding the current and likely future trajectories of an economy. Interestingly, due to the pioneering efforts of the then Finance Ministry, India was an early adopter of a domestic FoF framework and has always had one of the most extensive and up-to-date sets of data on money flows for developing economies. These accounts examine flows across six sectors — households, government, private corporations, banks, other financial institutions (OFIs) and the Rest of the World.

Surprisingly, despite the availability of the data, there have been very few attempts to provide a description of the monetary flows in the economy. Some of this may be because the data are calculated from balance sheet positions and may not always tally with other published accounts, some of it may be because the data is not easily collated, but neither are sufficient to explain the lack of scholarly engagement with the data. In a recent paper, we collated this data published by the Reserve Bank from 1955 to 2014 to provide a broad-brush picture of the evolution of Indian financial relations over this period. A few key findings were evident. Households in 2010 saw their net assets increase by 10% of GDP while the government increased its net liabilities by 5% of GDP.

First, almost across the entire period, the government sector is the largest net deficit sector while the household sector is the largest net creditor. Second, following the onset of liberalisation, the private corporate sector is running larger deficits as a fraction of GDP than any time in the past, although these deficits rarely exceed those of the government. Third, since the period of liberalisation there is a lot more volatility in financial positions than before it, signalling the growing complexity of monetary relations during this time. Fourth, the rest of the world has moved from being quite unimportant to becoming the second largest net surplus sector in the economy after households.

In addition, we find several striking results that are often glossed over in the general discourse on the Indian economy and that therefore bear highlighting. First, we find that the patterns of sectoral transfers have changed substantially over time. For example, the private corporate sector relies much more extensively on households and the rest of the world for their financing now than in the past where they relied on banks and OFIs.

Similarly, since 2010, banking has suddenly seen an influx of funds from the rest of the world and these funds account for a larger part of banking sources of funds than ever in the past.

Second, while the government is funded by the issuance of securities, the private corporate sector still relies more extensively on loans and advances and while this spread has reduced since the 1980s it is still large and significant.

Third, despite this India is moving from a bank-based to a market-based financial system. Between 1970 and 1990 loans and advances exceeded security issuances in all but two of the years; between 1991 and 2010, by contrast, loans and advances were smaller than security issuances in 11 of the 19 years.

Devil’s in the detail

These are only some of the results and insights that one can obtain from an examination of the data. While such a broad-brush picture necessarily omits details, using the flow of funds allows us to have significantly enriched picture of the broader economy. As Indian financial markets become more sophisticated and important, more fine-grained analyses will certainly need to be made for anyone wishing to understand the patterns and financing of India’s development. Finance Ministry’s early and insightful development of these accounts provide a very useful starting point in this regard.

Introduction to Business Environment

 

Business Environment - Tech

 

Business environment is the sum total of all external and internal factors that influence a business. You should keep in mind that external factors and internal factors can influence each other and work together to affect a business. For example, a health and safety regulation is an external factor that influences the internal environment of business operations. Additionally, some external factors are beyond your control. These factors are often called external constraints.

External Factors

Political factors are governmental activities and political conditions that may affect your business. Examples include laws, regulations, tariffs and other trade barriers, war, and social unrest. GST is a classic example of Political Factor affecting businesses in India.

Macroeconomic factors are factors that affect the entire economy, not just your business. Examples include things like interest rates, unemployment rates, currency exchange rates, consumer confidence, consumer discretionary income, consumer savings rates, recessions, and depressions.

Social factors are basically sociological factors related to general society and social relations that affect your business. Social factors include social movements, such as environmental movements, as well as changes in fashion and consumer preferences. For example, clothing fashions change with the season, and there is a current trend towards green construction and organic foods. That is why see Patanjali and others heavily promoting Ayurvedic and organic products.

Technological factors are technological innovations that can either benefit or hurt your business. Some technological innovations can increase your productivity and profit margins, such as computer software and automated production. On the other hand some technological innovations pose an exCloud Computing Photoistential threat to the business, such has Internet video streaming services challenging DVD business. Cloud Computing has made a huge impact on how businesses work today.

 

Internal Factors

Organisational Culture is the framework of values, visions, and norms, and customs shared by the members of an organisation. Your business culture affects how the employees in your business interact with each other, its customers and other stakeholders. According to studies effects of positive or negative employee habits are huge on organisation’s growth and profitability.

Customers/Consumers are the most important component for an organisation. Organisations sell products to customers which help them to achieve growth and profitability. Organisations should continuously monitor the use of their goods and their acceptance by consumers to sustain a growth in the competition. This is were businesses use data mining to determine patterns and customer habits.

Microeconomic factors are factors that can affect your business, such as market size, demand, supply, relationships with suppliers and your distribution chain, such as retail stores that sell your products, and the number and strength of your competition.Competitors

Competitors are other business entities who compete for same resources and market. Competition provides the correct shape to business. Organisation should regularly analyse the competition in terms of Who are main competitors? What are their present strategies?