Gambling Laws and Regulations Report 2025 India

The state of Nagaland has a licensing regime for virtual sports fantasy league games under the Nagaland Act. Rajasthan in 2022 issued a draft bill, namely the Rajasthan Virtual Online Sports (Regulation) Bill 2022 (“Rajasthan Bill”), proposing to regulate fantasy sports in the state under a licensing regime, however the same is not in force yet. In Andhra Pradesh and Telangana, fantasy sports for stakes or winnings are prohibited. In 2023, the Ministry of Electronics and Information Technology (MeitY) released draft amendments to the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021, specifically targeting online gaming. “Online real money games” are defined in Rule 2(qd) of the Rules, 2021, which defines the term as “an online game where a user makes a deposit in cash or kind with the expectation of earning winnings on that deposit”. Further, “winnings” is explained to mean “any prize, in cash or kind, which is distributed or intended to be distributed to a user of an online game based on the performance of the user and in accordance with the rules of such online game”.

At the time of writing, no SRB has been registered by the MeitY and hence there is no information available on the exact process of verification. On the other hand, the permission granted to the Royal Calcutta Turf Club in West Bengal has not been challenged and the club has also tied up with foreign race operators to offer their races on an online betting platform. Meanwhile in Karnataka, enforcement action has also been reported against those engaging in online betting on horse races. In India, the legislative powers are divided between the centre and the states under the Constitution of India, 1950 (“Constitution”). Under its Seventh Schedule, the Constitution grants each state (province) of the country the exclusive power to enact its own laws on “betting and gambling” for its own territory.

Online Gaming Regulations India: A Rapidly Evolving Landscape

Developers need to implement geo-blocking and custom user policies based on the location of their users to remain compliant. In case of the BNS or the IRWA, the offences may be related to content of the games or its advertisements or violation of any prohibitions imposed by the BNS (such as the one on private lotteries). The key legislation governing the taxation of income in India is contained in the Income Tax Act, 1961 (“ITA”) and the rules, notifications and circulars issued thereunder. Under the ITA, a non-resident (including a foreign company) will be taxed in India on any income that accrues or arises in India or is deemed to accrue or arise in India or is received or deemed to be received in India.

• The state of Nagaland has a licensing regime for virtual sports fantasy league games under the Nagaland Act.
• If the Rajasthan Bill is introduced, then the licensing authority will be the officers appointed by the state government.
• The objective, as stated in the PIB release, is to foster innovation while curbing addiction, fraud, and misinformation.
• The term “person” has been defined under the ITA to include, inter alia, an individual, foreign company, etc.

Online Gaming Bill Is Going To Be A Nightmare For Betting Apps

In April 2023, the CCPA took suo moto cognisance of an allegedly misleading advertisement for an offshore gambling platform. Notably, notices were issued to not only the platform but also the three film celebrities who appeared in the advertisement. Through these notices, the CCPA sought the celebrities’ response on what due diligence was undertaken by them to verify the platform’s claims prior to endorsing the same. It is pertinent to note that under the CPA, the CCPA may impose monetary penalties of up to INR 10,00,000 (approx. USD 11,921) to INR 50,00,000 (approx. USD 59,605) (for repeat offences) on endorsers for promoting misleading advertisements. Further, the CCPA is also empowered to prohibit such endorser(s) from endorsing any product or service for a period of up to one to three years (for repeat offences).

As stated in the table above, most formats of bingo may fall either in the category of lotteries or games of chance. In the absence of monetary or equivalent stakes, most State Gaming Laws are unlikely to be triggered. Also, as per the content of such games, other laws such as intellectual property laws or laws against obscenity, etc. may be triggered. Lotteries have been expressly excluded from the purview of the State Gaming Laws and are regulated by central laws and certain state-level lottery laws (collectively, “Lottery Laws”).

Tax authorities under GST laws are now empowered to block the platforms of non-compliant foreign operators. Where the income of a resident includes income by way of winnings from online games of any sort, including in the nature of betting, gambling, etc., such income would be liable to tax in the hands of such taxpayer, at 30% (plus applicable surcharge and cess). As per the ITA, the person responsible for paying to any person any such income for an amount exceeding INR 100 is obliged to withhold the said tax, on net winnings, at 30% (plus applicable cess). The term “person” has been defined under the ITA to include, inter alia, an individual, foreign company, etc.

As lawmakers seek to protect consumers while enabling innovation, developers will play a critical role in setting ethical standards. Integrating responsible gaming tools, limiting playtime for minors, and avoiding misleading advertising will help ensure a sustainable ecosystem. Before launching, perform a detailed analysis of the app’s structure, monetization model, and geographic targeting to ensure legal clarity. Most of the State Gaming Laws prescribe either a monetary fine and/or imprisonment for the offences mentioned in them. The states that have amended their State Gaming Laws to make them contemporary have much higher penalties as compared to those states where the original pre-internet statute is still unamended.

The foundational statute governing gambling in India is the Public Gambling Act 1867 India. This pre-independence legislation prohibits the operation of public gambling houses and criminalizes the visiting or management of such establishments. However, this act was primarily designed to target physical venues and did not envision a digital era. Officials said the aim is to make the internet — and online gaming in particular — safe, accountable and responsible. The Union Cabinet on Tuesday approved the Online Gaming Bill, which aims to regulate betting apps and put strict checks on gambling, sources said. In 2025, the Enforcement Directorate froze Rs. 284 Crore in assets belonging to Probo, a binary prediction platform offering yes/no outcomes on sports, news, and events.

The current state-wise fragmentation hinders growth and creates legal uncertainty. This list is illustrative and not exhaustive, but it highlights the legislative recognition of genres that are commonly featured in esports, mobile gaming apps, and skill-gaming platforms. But since gambling is a state subject (Entry 34, List II, Seventh Schedule), individual states are free to adopt, amend, or enact their own gambling laws. While Maharashtra, Madhya Pradesh, and others follow the central Act, states like Telangana, Andhra Pradesh, and Nagaland have introduced distinct legislation with stricter or licensing-based regimes. Due to the federal legal structure, gambling legality depends on individual state laws.

In Karnataka, the permission granted previously to the Bangalore Turf Club by the state government is currently suspended due to allegations of illegalities and tax evasion by the turf club. In addition to the content in the corresponding cell, states such as Punjab, Kerala, Maharashtra, et al. allow only physical lotteries. Among those state governments that organise lotteries themselves, physical lotteries are conducted by their designated departments or the state finance ministry. The state of Sikkim permits sports betting under a licence provided it is only offered within Sikkim. Until then, legal clarity will remain patchy, and compliance will require nuanced, state-sensitive legal strategies.

While justified by social protection and security concerns, the legislation eliminates a multi-billion dollar industry and hundreds of thousands of jobs. The law’s broad approach conflicts with decades of court precedents protecting skill-based games, creating an uncertain regulatory environment that may face future legal challenges. In relation to the Online Gaming Rules, the central government may employ URL/app blocking (through general intermediaries) as a preferred mode of enforcement action for non-compliant online games. The states of Telangana and Andhra Pradesh in the recent past amended their respective State Gaming Laws by either diluting or removing the express exemption provided to skill games and imposed a blanket prohibition on all games played for stakes, including skill games and online games. Legal challenges to the amendments done to the Andhra Pradesh Gaming Act, 1974 (“Andhra Pradesh Act”)iii and the Telangana Gaming Act, 1974 (“Telangana Act”)iv are pending before the regional High Court and the Supreme Court, respectively. Betting on horse races has been judicially recognised as a game of skill and many State Gaming Laws also expressly exclude it from their prohibitions – subject to certain conditions.

Enacted in February, 2025, the Tamil Nadu Regulation is aimed at prohibiting online gambling and online games of chance, including popular formats like Rummy and Poker, regardless of stakes. The regulation draws on definitions of terms like “online real money games” and “winnings” from the IT Rules, 2021 (above). A majority of the State Gaming Laws are pre-internet statutes and therefore prohibit gambling activities only in physical premises which are referred to as “gaming houses” or “common gaming houses”. The states of Sikkim and Nagaland have contemporary State Gaming Laws and a licensing regime for online games.

However, many states use it as a reference point to regulate online gambling, leading to varying interpretations and restrictions. Clearly communicate the rules, rewards, refund policy, and responsible gaming measures within your app to protect both users and developers legally. For instance, including leaderboards, practice modes, or training features can reinforce the “skill-based” nature of the game and increase its defensibility in court.

For poker played in casinos, please refer to the corresponding cell above on casino gaming. However, certain skill variants of poker (such as Texas Hold’em https://bcgamedownloadandroid.com/ & Omaha Hold’em) are not hit by the prohibitions under the State Gaming Laws (see the corresponding row below on “Skill games”) and therefore these variants can be played on physical premises too. The Public Gambling Act 1867 predates the internet and primarily governs physical gambling establishments.

The Indian Parliament has passed the Promotion and Regulation of Online Gaming Bill, 2025, completely banning all online games involving real money. This groundbreaking legislation, which received Presidential approval on August 22, marks a dramatic shift from the government’s previous supportive stance toward the gaming industry. The law promises to reshape India’s digital entertainment landscape while raising serious questions about economic consequences and regulatory consistency. A platform that is legally sound, transparent, and proactive stands the best chance of surviving – and thriving – as the sector evolves. This article offers an in-depth legal analysis of the current framework governing online gaming laws in India in 2025, particularly involving real-money wagers, drawing from constitutional law, judicial precedents, state-wise statutes, regulatory developments, and compliance obligations.

The state of Sikkim in the north-east of India, and the state of Goa in the west and the union territory of Daman and Diu in the west, regulate casino games in land-based form through state-specific laws. In Goa, Daman and Diu, casinos are regulated under the Goa, Daman and Diu Public Gambling Act, 1976 (“Goa Act”). Casinos in Sikkim are regulated under the Sikkim Casinos (Control and Tax) Act, 2002 (“Sikkim Casino Act”) (previously the Sikkim Electronic Entertainment Games (Control and Tax) Act, 2002). With over 500 million online gamers in India and rising investments in the sector, there is mounting pressure for a unified national policy on online gaming.