Indian fantasy sports companies present financial safeguards to the Supreme Court
In the ever-evolving landscape of online gaming, the Federation of Indian Fantasy Sports (FIFS) plays a pivotal role in maintaining trust, financial transparency, and adherence to legal requirements for fantasy sports operators in India.
FIFS, along with industry bodies such as the All India Gaming Federation (AIGF) and the E-Gaming Federation (EGF), has adopted a voluntary "code of ethics" that requires member companies to implement measures promoting responsible gaming, transparency, and fairness.
The FIFS framework mandates strict player protection and operational standards. This includes adherence to Know Your Customer (KYC) verification, age restrictions preventing minors from playing, transparent publication of game rules, clear payout structures, and secure user data management.
Member platforms are required to keep player funds separate from operational capital, in independent, non-interest-bearing fiduciary bank accounts. The bank acts as the custodian of the fiduciary account, with the account operated by a trustee, who can be either the platform or an independent escrow agent.
Contests are run through fully automated systems, with entry fees collected digitally, prize money distributed automatically, and platform fees deducted without manual handling of money. The only payment retained by platforms is their operational fee, which averages around 10 percent of the total prize pool.
Joining a fantasy sports contest does not create an actionable claim for the participant at the time of entry. An actionable claim arises for winners only after the contest concludes and is settled when winnings are credited. If players are not satisfied with the platform's resolution, they can appeal to an Ombudsman, a retired Supreme Court judge, for an independent review.
The FIFS operates a multi-level dispute resolution system, ensuring that any issues are addressed promptly and fairly. In the past decade, there has not been a single recorded case of a winner not receiving their prize due to escrow or operational failure.
On 8 August 2025, the Supreme Court heard explanations about the operational, financial, and legal systems of the fantasy sports industry. The submission outlined the industry's measures to maintain transparency, protect player funds, and ensure automated and fair contest operations.
While FIFS operates within a self-regulation model rather than being a formal government regulator, their role in enforcing these standards helps maintain user trust, financial transparency, and adherence to evolving legal requirements in the complex and sometimes contentious regulatory environment for fantasy sports in India.
Advertising by fantasy sports operators must comply with Advertising Standards Council of India (ASCI) guidelines requiring disclaimers about financial risk and addictiveness, prohibition of misleading claims, and restrictions on promoting gaming to minors. FIFS enforces these guidelines among its member companies.
Some states like Sikkim and Nagaland have regulatory frameworks mandating independent fairness testing of gaming algorithms and AML (Anti-Money Laundering) compliance, which aligns with FIFS's push for transparency and legal compliance among operators.
The safeguard framework is backed by an Escrow Agreement dated 30 June 2020, providing an additional layer of security for players and ensuring the industry's commitment to maintaining trust and transparency in the digital gaming space.
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