Is Online Gambling Legal in India? 2026 Guide
The PROGA Act 2025: The Ban That Changed Everything
The Promotion and Regulation of Online Gaming Act, 2025 received presidential assent on 22 August 2025. It is the single most important gambling law in India today, and it is a ban, not a licensing regime.
- All online money games are prohibited: games of chance, games of skill, and any combination - played online with monetary stakes.
- Advertising is banned: unlawful advertising of online money games carries up to two years imprisonment or a fine up to Rs. 50 lakh.
- Banks and payment systems are barred from processing transactions linked to online money games. Facilitating financial transactions can bring up to three years imprisonment or a fine up to Rs. 1 crore.
- Penalties are severe: offering online money games can bring imprisonment up to three years or a fine up to Rs. 1 crore, or both. Repeat offences run to five years and Rs. 2 crore. Offences are cognizable and non-bailable.
- Blocking powers: authorities can block access to unlawful platforms under the Information Technology Act, 2000, with CERT-IN empowered to disable non-compliant apps.
The other side of the Act: it promotes e-sports and online social (non-money) games through a central regulatory authority. The government drew a deliberate line - competition and entertainment are encouraged, money games are out.
Does PROGA Target Players? No.
This matters. Legal analyses of the Act are consistent: it does not criminalize players. The penalties target people who offer online money games, advertise them, and the financial institutions that process the transactions.
We are not aware of any Indian player being prosecuted for playing at an offshore online casino. Enforcement in India has always focused on operators and intermediaries, not individuals sitting at home on their phones.
The Public Gambling Act of 1867
India's original gambling law is the Public Gambling Act of 1867 - written for a world without telephones, let alone the internet. It prohibits running or visiting a common gaming house and covers games of chance, but it says nothing about online gambling because online gambling did not exist in 1867.
Most Indian states simply adopted this central law. It is the reason offshore casino sites have operated in a gray area for years: the law was never written to reach a server in Malta.
State Laws: It Depends Where You Live
Gambling is a state subject under the Constitution, so each state makes its own rules. The picture is uneven:
- Explicit online bans: Telangana (2017 amendment) and Andhra Pradesh ban online gambling outright, including access to online casino sites.
- Strict prohibitions: Tamil Nadu passed its own online gambling prohibition in 2022; Maharashtra's gambling act is one of the strictest in the country.
- Licensed regimes (pre-PROGA): Sikkim and Nagaland had licensing frameworks for online games. Goa and Daman allow land-based casinos.
- Everyone else: relies on the 1867 Act, which has no online provisions.
Note: PROGA is central legislation and applies nationwide. The state-by-state differences above matter mostly for land-based gambling and for understanding local enforcement attitudes.
Skill vs Chance: The Distinction Is Dead for Online Money Games
For decades, Indian courts drew a line between games of skill and games of chance. The Supreme Court ruled rummy a game of skill in 1968, and fantasy sports were repeatedly upheld as skill-based, with the Supreme Court declining to interfere in 2021.
That distinction no longer applies to online money games. PROGA explicitly bans all online money games "whether involving games of skill, games of chance, or any combination thereof." The old court rulings still matter for offline play and non-money formats, but they do not create a legal route for online real-money gaming.
What About Offshore Casinos?
Here is the honest gray area. Offshore casino sites sit outside Indian jurisdiction, and a survey by CUTS International found that use of offshore betting platforms actually increased after the 2025 ban, as players migrated from shuttered domestic platforms.
But the gray area has real edges now:
- Payments are the choke point. Banks and payment gateways are barred from processing gambling transactions. UPI and NetBanking deposits to known gambling merchants can be blocked.
- Sites can be blocked. The government has blocking powers and has used them.
- No regulator has your back. If an offshore casino refuses to pay, no Indian authority can force it to. Our complaints guide explains the limits.
- Your state matters. In Telangana or Andhra Pradesh, even accessing online gambling is explicitly banned.
Our safety checklist walks through verification step by step for players who choose to play offshore anyway.
Winnings and Tax
Winnings from gambling are taxed at a flat 30% (plus surcharge and cess) under Section 115BBJ of the Income Tax Act, with 30% TDS under Section 194BA on net winnings (no threshold; offshore casinos typically do not withhold, so self-reporting is the player's responsibility). There is no basic exemption: the 30% applies from the first rupee of net winnings in that category.
Separately, online gaming carried 28% GST on the full face value of bets from October 2023; since 22 September 2025 the rate is 40%. We are not tax advisors: if you win significant amounts, speak to an Indian tax professional. Do not rely on an affiliate site for tax advice.
Related India Guides
FAQ
Is online gambling legal in India?
The Promotion and Regulation of Online Gaming Act, 2025 comprehensively prohibits all online money games in India - games of skill, games of chance, and combinations. It bans offering them, advertising them, and processing payments for them. Gambling remains a state subject, so state laws also apply.
Does the PROGA Act criminalize players?
The Act targets operators, advertisers, and financial facilitators - not players. Offering online money games can bring up to three years imprisonment or a fine up to Rs. 1 crore. We are not aware of any Indian player being prosecuted for playing at an offshore online casino.
What about games of skill like rummy and fantasy sports?
Indian courts historically treated rummy and fantasy sports as games of skill exempt from gambling law. The PROGA Act 2025 changed this for online play: it bans all online money games whether skill, chance, or a mix. E-sports and social (non-money) games are promoted under the Act instead.
Can I still play at offshore casinos from India?
This is a gray area. Offshore sites sit outside Indian jurisdiction, and surveys show offshore betting actually grew after the 2025 ban. But banks are now barred from processing gambling transactions, sites can be blocked, and you have no Indian regulator to complain to. See our safety checklist.
Which Indian states ban all online gambling?
Telangana and Andhra Pradesh have explicit bans covering online gambling. Tamil Nadu and Maharashtra also have strict prohibitions. Other states rely on the central Public Gambling Act of 1867, which predates the internet.
Do I pay tax on casino winnings in India?
Winnings from gambling are taxed at a flat 30% (plus surcharge and cess) under Section 115BBJ of the Income Tax Act, with 30% TDS under Section 194BA on net winnings (no threshold; offshore casinos typically do not withhold, so self-reporting is the player's responsibility). We are not tax advisors: speak to an Indian tax professional about your situation.