*Game of Skills*

Vela Esports is classified as a “game of skill.” A game of skill is defined as a game in which the skills of the individuals participating in any online Esports gaming play a dominant role, rather than the mere luck of the individuals. In games of skill, participants use their knowledge, skills, training, and attention for participation and winning. Online Esports gaming is considered a legal practice worldwide, with certain states being exceptions. Online Esports gaming is entirely based on the concept of a game of skills.

The services, contests, and programs related to online Esports gaming offered by Vela Esports depend entirely on the skills, knowledge, and attention of the users. This makes online Esports gaming offered at Vela Esports a game of skills and 100% legal.

*Alignment with Indian Laws*

Games of skills, such as online Esports gaming, are considered legal throughout India, with exceptions in certain states such as Andhra Pradesh, Assam, Orissa, Telangana, Sikkim, Meghalaya, Tamil Nadu, and Nagaland. The Public Gambling Act, 1867 (“PGA, 1867”) is recognized as the primary law governing gambling in India. The PGA defines “public gambling” and the operation of common gaming houses as criminal and punishable acts in India. However, online fantasy sports gaming is considered an exception under the PGA, where the provisions and punishments of the PGA do not apply to games played by users using their skills and knowledge as primary tools.

States where online Esports gaming is restricted due to legal uncertainties are Andhra Pradesh, Assam, Orissa, Telangana, Tamil Nadu, Sikkim, Meghalaya, and Nagaland. In this context, it remains unclear whether websites offering Esports gaming should provide services for free or not. Vela Esports does not permit users identified as residents of these states to participate in pay-to-play contests organized by Vela Esports.