India: gambling regulation and licensing

India prohibits online gambling of every kind at national level. The Promotion and Regulation of Online Gaming Act, 2025 received assent on 22 August 2025 and, with the Promotion and Regulation of Online Gaming Rules, 2026, came into force on 1 May 2026. It bans offering any online money game, meaning a game played for money or other stakes in expectation of winning, whether it rests on skill, chance or both, so fantasy sports, rummy and poker are caught alongside casino games and betting. Advertising such games and processing payments for them are separate offences. Offering a money game carries up to three years in prison or a fine of up to 1 crore rupees, rising to three to five years and 1 to 2 crore rupees on repeat conviction. The Act creates no offence for players. The Online Gaming Authority of India, an attached office of the Ministry of Electronics and Information Technology, decides whether a game is a money game, publishes a list of those it finds, and registers e-sports and any social games the Government names. There is no licence for any online gambling product, and blocking directions had been issued for 8,376 betting and gambling URLs by 28 March 2026. Land-based gambling remains a State matter: Goa, for example, authorises slot machines in five-star hotels and casinos on offshore vessels. GST of 40% has applied to betting, casinos, gambling, horse racing, lottery and online money gaming since 22 September 2025, charged on amounts paid or deposited rather than on gross gaming revenue. On 27 May 2026 the Supreme Court upheld retrospective GST demands on online gaming and State bans on online games played for stakes. A constitutional challenge to the 2025 Act was still pending at review.

Regulator

Online Gaming Authority of India (OGAI)

Regulator type

Dedicated regulator

Headline tax

Not yet verified

Licence required

No

Minimum age

Not yet verified

Tax base

GST on specified actionable claims (betting, casinos, gambling, horse racing, lottery and online money gaming) at 40% from 22 September 2025, previously 28%. For online gaming the taxable value is the total amount paid or deposited by or for the player, and for casinos the total paid for chips or participation, with no deduction for amounts returned or refunded; winnings re-staked without being withdrawn are not counted as new deposits (CGST Rules 31B and 31C, held clarificatory and retrospective by the Supreme Court on 27 May 2026). It is not a tax on gross gaming revenue. Because online money gaming is prohibited from 1 May 2026, the 40% rate now bears mainly on lawful supplies such as casinos, horse racing and lottery, while past online gaming supplies remain open to assessment under the rules then in force.

Capital

New Delhi

Currency

INR

Official languages

Hindi, English

Licence required

No

Application window

Not yet verified

Local establishment required

Not yet verified

Local server required

Not yet verified

Typical time to licence

Determination of whether a game is a money game should be completed, as far as practicable, within 90 days of a complete application or suo motu notice; an e-sport is registered within 90 days of a complete application (Rules 2026, rr. 10(3) and 13(3)).

Certification requirements

Applications must give identity, existing licences, the game description and category, target age group, revenue model, user safety features and the internal grievance mechanism (r. 23). Registered providers must display their determination or registration, designate a point of contact and follow directions on data retention and payments (rr. 15 to 18).

Barriers to entry

There is no licence for any online money game, whether of skill or chance, and no route to obtain one; offering one is a criminal offence (2025 Act, ss. 5 and 9). Permitted online activity is limited to e-sports and online social games that involve no stakes. Land-based gaming is authorised only under State law, for example Goa casinos in five-star hotels and on offshore vessels.

Headline GGR tax

Not yet verified

Effective date

22 Sept 2025

Turnover tax

40%

Player winnings tax

Net winnings from online games are taxed at a flat 30%, whether the game is of skill or chance, with no basic exemption and no deductions (Income Tax Department).

Withholding mechanism

Tax is deducted at source at 30% of net winnings at withdrawal or, if nothing is withdrawn, at the end of the financial year (Income Tax Department).

VAT treatment

Actionable claims in betting, casinos, gambling, horse racing, lottery and online money gaming are treated as goods under GST and taxed at 40% with input tax credit from 22 September 2025. Admission to casinos and race clubs also moved from 28% to 40%.

Tax base

GST on specified actionable claims (betting, casinos, gambling, horse racing, lottery and online money gaming) at 40% from 22 September 2025, previously 28%. For online gaming the taxable value is the total amount paid or deposited by or for the player, and for casinos the total paid for chips or participation, with no deduction for amounts returned or refunded; winnings re-staked without being withdrawn are not counted as new deposits (CGST Rules 31B and 31C, held clarificatory and retrospective by the Supreme Court on 27 May 2026). It is not a tax on gross gaming revenue. Because online money gaming is prohibited from 1 May 2026, the 40% rate now bears mainly on lawful supplies such as casinos, horse racing and lottery, while past online gaming supplies remain open to assessment under the rules then in force.

Minimum age

Not yet verified

National self-exclusion

Not yet verified

Data localisation

Providers of online social games and e-sports must retain and store traffic data, metadata and related information on computer resources located in India for the period the Authority directs (r. 17).

KYC requirements

Not yet verified

Stake limits

Not yet verified

Reporting obligations

Providers of online social games and e-sports must display any determination or registration, designate a point of contact, furnish information on request and follow periodic compliance reporting directions of the Authority (Rules 2026, rr. 6(4)(j), 6(5), 15 and 16).

Game content restrictions

No online money game may be offered (2025 Act, s. 5). In deciding whether a game is a money game the Authority considers fees or stakes, expectation of monetary winnings, the use of payments, the revenue model and whether rewards or in-game assets can be redeemed or monetised outside the game (Rules 2026, r. 9). Permitted games must carry user safety features appropriate to their risk, such as age verification or age gating, time restrictions, parental controls, reporting tools, counselling support and fair-play monitoring (r. 2(1)(i)), and a grievance redressal mechanism (r. 20).

Advertising permitted

No

Affiliate rules

No affiliate regime. Section 6 reaches anyone who aids, abets or is otherwise involved in making an advertisement for an online money game, which covers affiliates and publishers; the Directorate of Enforcement has pursued a cricket app publisher that carried geo-targeted 1xBet advertising.

Celebrity and influencer rules

Advisories of the Central Consumer Protection Authority and the Ministry of Information and Broadcasting warn celebrities and influencers against endorsing betting platforms; since 1 May 2026 any such promotion of an online money game falls within s. 6 of the 2025 Act.

Penalties for breach

Imprisonment of up to two years, a fine of up to 50 lakh rupees, or both; on a second or later conviction two to three years and a fine of 50 lakh to 1 crore rupees (2025 Act, s. 9(2) and (5)).

Credit card ban

Not yet verified

Crypto stance

Not yet verified

Payment blocking regime

No bank, financial institution or other person facilitating financial transactions may process or authorise payments for an online money gaming service (2025 Act, s. 7), on pain of up to three years’ imprisonment or a fine of up to 1 crore rupees (s. 9(3)); the offence is cognizable and non-bailable (s. 10). On a direction of the Online Gaming Authority, banks and payment providers must without delay suspend, restrict or discontinue transactions for a game determined to be a money game (Rules 2026, r. 19(2)), and they must verify a registration certificate before handling payments for registered social games and e-sports where directed (r. 19(1)).

ISP blocking

Yes

DNS blocking

Not yet verified

Payment blocking

Yes

App store takedowns

Not yet verified

Blocklist size

8,376 (as of 28 Mar 2026)

Administrative penalties

Failure to comply with a direction or order of the Central Government or the Authority: penalty up to 10 lakh rupees, suspension or cancellation of registration, or a ban on offering, facilitating or promoting games for a set period, after a hearing (2025 Act, s. 12; Rules 2026, r. 21). Penalties are credited to the Consolidated Fund of India (r. 22).

Criminal penalties

Offering an online money game or facilitating payments for one: imprisonment up to three years, a fine up to 1 crore rupees, or both; on a second or later conviction three to five years and a fine of 1 crore to 2 crore rupees. Advertising: up to two years, up to 50 lakh rupees, or both; on repeat two to three years and 50 lakh to 1 crore rupees (2025 Act, s. 9). Offences under ss. 5 and 7 are cognizable and non-bailable (s. 10). Organised unauthorised betting by a gang member: one to seven years and a fine (Bharatiya Nyaya Sanhita, s. 112).

Operator liability

Operators, including those offshore, commit an offence by offering an online money game (ss. 1(2), 5 and 9). Where a company offends, the persons in charge and any consenting or negligent director or officer are liable, but independent and non-executive directors not involved in decisions are not (s. 11). Authorised officers may enter physical or digital places and search and arrest without warrant (s. 16), and State and Union Territory cyber cell officers are empowered to investigate. Content relating to an online money gaming service may be blocked under s. 69A of the IT Act (s. 14).

Player liability

The 2025 Act creates no offence for playing an online money game; its penalties attach to offering, advertising and payment facilitation (s. 9). State gambling laws may reach players; they were not checked at review.

1. 1 Oct 2023

   GST at 28% on online gaming and casinos, valued on amounts deposited or paid, takes effect

2. 21 Aug 2025

   Parliament passes the Promotion and Regulation of Online Gaming Bill, 2025

3. 22 Aug 2025

   Presidential assent to the Promotion and Regulation of Online Gaming Act, 2025 (Act No. 32 of 2025)

4. 3 Sept 2025

   56th GST Council recommends raising GST on betting, casinos, gambling, horse racing, lottery and online money gaming to 40%

5. 8 Sept 2025

   Supreme Court transfers the High Court challenges to the 2025 Act to itself

6. 22 Sept 2025

   GST of 40% on specified actionable claims takes effect

7. 2 Oct 2025

   MeitY publishes the draft Online Gaming Rules for public consultation

8. 28 Mar 2026

   Blocking directions issued for 8,376 betting, gambling and gaming URLs to date

9. 22 Apr 2026

   Promotion and Regulation of Online Gaming Rules, 2026 notified (G.S.R. 303(E))

10. 1 May 2026

    The 2025 Act and the 2026 Rules, which constitute the Online Gaming Authority of India, come into force

11. 27 May 2026

    Supreme Court upholds retrospective GST on online gaming (Gameskraft) and State bans on online games played for stakes (Junglee Games)

12. 14 Jul 2026

    Directorate of Enforcement arrests Vikas Garg in the Mahadev Online Book betting case

The Supreme Court challenge to the 2025 Act, transferred to the Court in September 2025, is the main open question; no judgment had been located at review. The Online Gaming Authority must publish a list of games it determines to be online money games (Rules 2026, r. 26), and the Central Government may notify categories of social games that must be determined or registered (rr. 8 and 12). GST authorities must decide the restored show cause notices against online gaming and casino operators on deposit-based valuation, with orders due within twelve weeks of the eight-week reply period set by the Supreme Court on 27 May 2026. Enforcement against offshore betting continues through URL blocking and Directorate of Enforcement money laundering cases.

Is online real-money gaming legal in India?

No. Since 1 May 2026 the Promotion and Regulation of Online Gaming Act, 2025 prohibits offering, advertising or processing payments for any online money game, including services operated from outside India. There is no licence route.

Are fantasy sports, rummy and poker still allowed as games of skill?

No. The Act defines an online money game irrespective of whether it is based on skill, chance or both, so paid fantasy contests, rummy and poker for stakes are prohibited. The Supreme Court held on 27 May 2026 that once stakes are placed the skill element loses significance.

Can players be prosecuted?

The 2025 Act penalises offering, advertising and payment facilitation, not playing. Organised unauthorised betting by gang members is an offence under section 112 of the Bharatiya Nyaya Sanhita. State gambling laws were not checked for player offences.

What are the penalties for operators?

Up to three years in prison, a fine of up to 1 crore rupees, or both for offering a money game or facilitating payments, and three to five years with 1 to 2 crore rupees on repeat conviction. Advertising carries up to two years and 50 lakh rupees. Offering and payment offences are cognizable and non-bailable.

How is gambling taxed?

GST of 40% applies from 22 September 2025 to betting, casinos, gambling, horse racing, lottery and online money gaming, charged on the amount paid or deposited. Winnings from online games are taxed at 30%, with tax deducted at source at withdrawal or year end.

What online gaming can still operate?

E-sports and online social games that involve no stakes. The Online Gaming Authority of India determines, normally within 90 days, whether a game is a money game, and registers e-sports and any category of social games the Government notifies, for up to 10 years.

• Vietnam
• Singapore
• Hong Kong

1. The Promotion and Regulation of Online Gaming Act, 2025 (Act No. 32 of 2025), text incorporating the corrigenda of 28 August 2025

   Ministry of Electronics and Information Technology, Government of India

   The header gives assent and Gazette notification on 22.08.2025, while footnote 1 reads 22.9.2025; the August date is confirmed by the Lok Sabha answer of 29 July 2026 and is recorded.

   Tier 1Accessed 23 Sept 2026Published 22 Aug 2025
2. Promotion and Regulation of Online Gaming Rules, 2026 (G.S.R. 303(E), Gazette of India Extraordinary, Part II, Section 3(i), 22 April 2026)

   Gazette of India (Department of Publication)

   Tier 1Accessed 23 Sept 2026Published 22 Apr 2026
3. Promotion and Regulation of Online Gaming Rules, 2026

   Press Information Bureau, Government of India

   Tier 2Accessed 23 Sept 2026Published 22 Apr 2026
4. Enabling safe and responsible gaming under the Online Gaming Rules, 2026

   Press Information Bureau, Government of India

   The note cites an industry revenue estimate of INR 232 billion for 2024 without an official statistical source; it is not used as market data.

   Tier 2Accessed 23 Sept 2026Published 30 Apr 2026
5. Promotion and Regulation of Online Gaming Bill, 2025 (explainer on passage by Parliament)

   Press Information Bureau, Government of India

   Tier 2Accessed 23 Sept 2026Published 21 Aug 2025
6. Lok Sabha Unstarred Question No. 1776, Registration of e-Sport Games, answered 29 July 2026 (Ministry of Electronics and Information Technology)

   Lok Sabha, Parliament of India (sansad.in)

   Tier 2Accessed 23 Sept 2026Published 29 Jul 2026
7. Lok Sabha Unstarred Question No. 6037, Offshore Digital Platform, answered 1 April 2026 (Ministry of Electronics and Information Technology)

   Lok Sabha, Parliament of India (sansad.in)

   The answer describes GST on online gaming as 28% from 1 October 2023. The GST Council raised the rate on specified actionable claims to 40% from 22 September 2025; the later rate is recorded.

   Tier 2Accessed 23 Sept 2026Published 1 Apr 2026
8. Lok Sabha Unstarred Question No. 4191, Ban on Online Money Games, answered 18 March 2026 (Ministry of Information and Broadcasting)

   Lok Sabha, Parliament of India (sansad.in)

   Tier 2Accessed 23 Sept 2026Published 18 Mar 2026
9. Directorate General of GST Intelligence (HQS) v. Gameskraft Technologies Pvt. Ltd., Civil Appeal Nos. 8241 to 8244 of 2026 and connected matters, 2026 INSC 595, judgment of 27 May 2026

   Supreme Court of India

   The connected judgment in State of Tamil Nadu v. Junglee Games India Pvt. Ltd. (Civil Appeal Nos. 6124 to 6131 of 2023), delivered the same day, was not located on an official host; its holding is recorded as summarised by the Court in paragraph 47 of this judgment, and its date of 27 May 2026 (2026 INSC 594) rests on law reports, not on an opened official text.

   Tier 1Accessed 23 Sept 2026Published 27 May 2026
10. Recommendations of the 56th Meeting of the GST Council (press release of 3 September 2025 with rate annexures)

    GST Council Secretariat, Ministry of Finance

    This is the Council recommendation; the implementing rate notifications were not read at review.

    Tier 2Accessed 23 Sept 2026Published 3 Sept 2025
11. Winnings from Online Games (tax on winnings and TDS)

    Income Tax Department, Central Board of Direct Taxes

    The page, last reviewed 17 September 2026, cites sections 115BBJ and 194BA of the Income-tax Act, 1961. Whether those provisions now sit under different section numbers in the Income-tax Act, 2025 was not checked.

    Tier 1Accessed 23 Sept 2026
12. The Bharatiya Nyaya Sanhita, 2023 (Act No. 45 of 2023), section 112

    Ministry of Home Affairs, Government of India (Gazette text)

    Tier 1Accessed 23 Sept 2026Published 25 Dec 2023
13. The Goa, Daman and Diu Public Gambling Act, 1976 (Manual of Goa Laws, Vol. III), sections 13 and 13A

    Goa Police, Government of Goa

    The Manual text lists amendments up to Act 25 of 2003; later amendments, if any, were not checked.

    Tier 1Accessed 23 Sept 2026
14. ED provisionally attaches assets of Rs. 18.10 crore in the 1xBet illegal online betting case

    Directorate of Enforcement, Ministry of Finance

    Tier 2Accessed 23 Sept 2026Published 2 Mar 2026
15. ED attaches Indian and foreign properties worth Rs. 1700 crore in the Mahadev Online Book betting case

    Directorate of Enforcement, Ministry of Finance

    Tier 2Accessed 23 Sept 2026Published 25 Mar 2026
16. ED arrests Vikas Garg in the Mahadev Online Book and Skyexchange illegal betting case

    Directorate of Enforcement, Ministry of Finance

    Tier 2Accessed 23 Sept 2026Published 17 Jul 2026
17. ED arrests Alok Kumar Jain over illegal IPL betting through foreign online portals

    Directorate of Enforcement, Ministry of Finance

    Tier 2Accessed 23 Sept 2026Published 22 Jul 2026
18. Challenge to the Promotion and Regulation of Online Gaming Act, 2025

    Supreme Court Observer

    Used only for the procedural history of the pending challenge (transfer to the Supreme Court on 8 September 2025, bench, and a hearing listed for 5 August 2026, page last updated 2 July 2026). No Supreme Court order in the matter was located on an official host.

    Tier 3Accessed 23 Sept 2026