India changed its approach to online gambling completely in 2025. The Promotion and Regulation of Online Gaming Act 2025 bans online money games of every kind, including online casino games, along with their advertising and the payments that support them. This guide explains what the law says, who enforces it, how gaming winnings are taxed, what risks you face with unlicensed foreign sites and where to get help.
Is online gambling legal in India?
No. The Promotion and Regulation of Online Gaming Act 2025 (often called PROGA) received presidential assent in August 2025. It prohibits offering, operating or facilitating any online money game, which is any game played online where a user pays or deposits money in the hope of winning money or other rewards. The ban applies whether the game is based on skill, chance or both, so online casino games, online rummy and poker for money, and fantasy sports for money are all covered.
The Act also promotes two categories that remain legal: e-sports and online social games that do not involve staking money. These can be recognised and registered under the Act.
Gambling has traditionally been a state subject in India, and states such as Goa and Sikkim permit licensed land-based casinos. Those land-based licences do not extend to online casino games offered to the rest of the country.
What does the Online Gaming Act prohibit?
The Act sets out three main prohibitions, each with its own penalties. Offences under the Act are cognizable and non-bailable.
- Offering online money games: up to three years in prison, a fine of up to Rs 1 crore, or both, with higher penalties for repeat offences
- Advertising online money games, including indirect promotion and endorsements: up to two years in prison, a fine of up to Rs 50 lakh, or both
- Processing payments: banks, financial institutions and payment systems may not process transactions for online money games
Is the ban being challenged in court?
Yes. Several gaming companies and individuals have challenged the Act before the Supreme Court of India, arguing among other things that it restricts the right to carry on a business and that gambling is a matter for the states. The Supreme Court has taken up the petitions for final hearing.
Until the court rules otherwise, the Act applies in full. If the position changes, it will be reported by the Ministry of Electronics and Information Technology and in the national press.
Are players punished for using online casinos?
The penalties in the 2025 Act are aimed at those who offer, advertise or finance online money games. The government has described players as the people the law is meant to protect rather than as offenders.
That does not make using these sites safe. Foreign casino sites are not licensed in India and no Indian authority will help you if a withdrawal is refused or your account is closed. Payments may be blocked, and funds sent through informal channels can be lost. Some state laws on gambling also remain in force alongside the Act, so local rules can still apply.
Why are betting and casino websites blocked in India?
The Ministry of Electronics and Information Technology (MeitY) can order internet service providers to block websites and apps under the Information Technology Act, and it has used these powers against many offshore betting and gambling sites. The 2025 Act adds further powers to block online money gaming services.
Banks and payment providers are also required not to process transactions for online money games. If a payment fails or a site will not load, that is the law being applied, not a technical fault to work around.
How are online gaming winnings taxed in India?
Winnings from online games are taxed under Section 115BBJ of the Income-tax Act at a flat rate of 30 percent, plus applicable surcharge and cess. The basic exemption limit does not apply, and no deductions are allowed against these winnings.
For Indian platforms, tax is deducted at source under Section 194BA on net winnings, at the time of withdrawal or at the end of the financial year. Winnings from foreign sites are still taxable in India, and you are responsible for reporting them yourself. Holding money with an unlicensed offshore site does not remove the tax obligation. A chartered accountant can advise on your own situation.
What are the main risks of unlicensed gaming sites?
Online money gaming sites that still target Indian users operate outside Indian law by definition. The most common problems reported by users are listed below.
- Withdrawals delayed or refused, with no Indian regulator to complain to
- Accounts closed after a win, often over bonus or verification terms
- Payments routed through third-party accounts, which can lead to frozen bank accounts
- Personal and identity documents shared with unknown companies
- Fake apps and clone sites set up only to collect deposits
Where can you get help with gambling in India?
If gambling is costing you more money or time than you intended, or causing stress at home or work, free help is available. Tele-MANAS, the government's national mental health helpline, is free and open 24 hours a day on 14416 or 1-800-891-4416, with support in many Indian languages.
Gamblers Anonymous groups meet in several Indian cities, and many hospitals with psychiatry departments treat gambling problems. If you have been cheated by a gaming site, you can report cyber fraud on the national helpline 1930 or at cybercrime.gov.in.
Myths vs facts
- Myth: Games of skill like rummy and poker are still legal for money online.
- Fact: The 2025 Act bans online money games whether they are based on skill, chance or both.
- Myth: A site licensed in Curaçao or Malta is legal in India.
- Fact: A foreign licence has no effect in India. Offering or advertising online money games to Indian users is prohibited under the 2025 Act.
- Myth: Winnings from foreign sites are tax free because no TDS is deducted.
- Fact: All online gaming winnings are taxable at 30 percent under Section 115BBJ. If no tax is deducted, you must pay it yourself.
- Myth: Land casinos in Goa mean online casinos are allowed too.
- Fact: State licences for land-based casinos do not cover online casino games offered across India.
Before you claim
- Online money games, including casino games, are banned under the 2025 Act
- Foreign casino licences have no legal effect in India
- Online gaming winnings are taxed at 30 percent
- Report cyber fraud on 1930 or cybercrime.gov.in
- Tele-MANAS number saved: 14416