Explanation:

Legality of Games in India

• The state legislators are, vide Entry No. 34 of List II (State List) of the Seventh Schedule of the Constitution of India, given exclusive power to make laws relating to betting and gambling.
• Most Indian states regulate gaming on the basis of a distinction in law between ‘games of skill’ and ‘games of chance’.
• As such, a ‘dominant element’ test is to be utilised to determine whether chance or skill is the dominating element in determining the result of the game.
• This ‘dominant element’ may be determined by examining whether factors such as superior knowledge, training, experience, expertise or attention of a player have a material impact on the outcome of the game.
• Staking money or property on the outcome of a ‘game of chance’ is prohibited and subjects the guilty parties to criminal sanctions.
• However, placing any stakes on the outcome of a ‘game of skill’ is not illegal per se and may be permissible.
• It is important to note that the Supreme Court recognized that no game is purely a ‘game of skill’ and almost all games have an element of chance.

Hence only statement 1st is correct.