KhelFactory offers cash games and tournaments, only in games of skills, Participating in games of skill competitions for cash prizes is LEGAL in all states of India except Assam, Orissa, Nagaland, Sikkim and Telangana. Under Indian Laws gambling is different from Skill Games. Gambling has been defined by the Supreme Court in 1996 as betting and wagering on games of chance only. The Supreme Court in this judgment specifically excludes games of skill, irrespective of whether they are playing for money or not, from the definition of gambling. The exact quote from the 1996 judgment is as follows:

"The expression ‘gaming’ in the two Acts has to be interpreted in the light of the law laid-down by this Court in the two 1957 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” Further the Public Gambling Act, which is the central law on gambling and most subsequent state laws on the subject substantially state that “nothing in this Act shall apply to games of mere skill wherever played”.

Supreme Court of India in 1996 Defined a Game Of Skill as Follows:

Skill games are completely legal as expressed by Honourable Supreme Court of India as follows:

a) Skill games require skills of analytic decision making, quick reaction, good observation and sharp memory.

b) The competitions where success depends on the substantial degree of skill are not "gambling".

c) Despite there being an element of the chance if a game is preponderantly a game of skill, it would nevertheless be a game of "mere skill".