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Even though gambling is not illegal, a distinction between skill-based games and games based on pure chance is made. State Governments and their legislators have made poker, rummy,e-sports and fantasy sports legal. Some of the reasons why these games are legal are because they are based on a player’s skills, and they are also easily taxed.

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Provided further that if such supplier does not have a physical presence or does not have a representative for any purpose in the taxable territory, he shall appoint a person in the taxable territory for the purpose of paying integrated tax and such person shall be liable for payment of such tax. Section 58(4) provides that no deduction in respect of any expenditure or allowance in connection with such income shall be allowed in computing the income by way of winning from lotteries, crosswords, puzzles, races, card games, and other games of any kind or form of gambling or betting of any form or whatsoever. As per clause (ix) of Section 2(24), income is to include ‘winnings from lotteries, crossword puzzles, card game and other game of any sort’, or from gambling or betting of any form or nature whatsoever.

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