Regulatory
Skill Game
Reviewed by iGaming Times editorial teamLast reviewed 24 September 2026
What is Skill Game?
A game whose outcome is determined predominantly by player skill rather than chance, which in many jurisdictions places it outside the definition of gambling.
Key takeaways
- A skill game is one whose outcome depends predominantly on player skill, which in many jurisdictions takes it outside gambling law.
- Jurisdictions test skill differently, so one product can be licensed, unregulated or criminal depending on the market.
- Legislatures can redefine skill at any time, so a skill classification is rarely a permanent basis for a business.
Why it matters
The skill and chance distinction is one of the oldest fault lines in gambling law and one of the least consistently drawn. Some jurisdictions apply a dominant factor test, asking which element predominates; others ask whether any material chance element exists at all. The same product can therefore be a licensed casino game in one market, an unregulated skill game in a second and a criminal offence in a third.
The stakes are large where the classification carries a whole industry. Fantasy sports, rummy, poker and certain arcade-style terminals have all been argued as skill games, and national courts have reached opposing conclusions on essentially identical facts. Legislatures have periodically settled the question by statute, sometimes abolishing the distinction entirely for online real-money play.
For operators the practical risk is that a skill classification is rarely permanent. It survives at the pleasure of a legislature that can redefine it.
The bottom line
Skill is a legal category rather than a mathematical one. Building a business on it means building on a definition that a parliament can change in an afternoon.
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Frequently asked questions
What is a skill game?
A skill game is a game whose outcome is determined predominantly by the player's skill rather than by chance. In many jurisdictions that classification places it outside the legal definition of gambling, so it can be offered without a gambling licence. Fantasy sports, rummy, poker and some arcade-style terminals have all been argued to be skill games, with differing results.
How do courts decide whether a game is skill or chance?
Approaches differ. Some jurisdictions apply a dominant factor test, asking whether skill or chance predominates in deciding the outcome. Others ask whether any material element of chance exists at all, which catches far more products. Because the tests differ, national courts have reached opposing conclusions on essentially identical facts, and the same game can be treated differently across borders.
Why is skill game status a risk for operators?
A skill classification survives only as long as the legislature and courts accept it. Legislatures have periodically settled the question by statute, sometimes abolishing the skill and chance distinction entirely for online real-money play. A business built on skill game status can therefore find its product reclassified as gambling, or prohibited, with little notice.