India Online Gambling Regulation, Licensing & Tax Regime

India's online gaming market underwent the most severe regulatory transition observed in this jurisdiction to date. The Promotion and Regulation of Online Gaming Act, 2025, with Rules in force from 1 May 2026, prohibits online real-money gaming nationwide and extraterritorially, ending the ambiguous skill-versus-chance jurisprudence that previously governed the sector. Formerly dominant operators including Dream11, MPL and PokerBaazi have wound down real-money operations. The market has bifurcated: real-money gaming is closed by statute, while e-sports and non-monetary social games remain permitted and are actively promoted under the newly constituted Online Gaming Authority of India, which now serves as the national regulator for classification and registration of permissible games in this restructured landscape.

## Central Gaming Law The Online Gaming Act, read with the Online Gaming Rules, establishes a central regulatory framework for online gaming in India. Under the Online Gaming Act, the Authority is empowered to determine whether a particular online game constitutes an online money game. In making such determination, the Authority considers factors including (i) whether the game involves payment of fees, deposit of money or other stakes; (ii) whether players have an expectation of winning money or other enrichment; (iii) the nature and purpose of payments, including participation fees, subscription or access fees, bets or wagers; (iv) the structure and operation of the revenue model; and (v) whether in-game rewards, benefits or assets may be transferred, redeemed or monetised outside the game environment. Under the Online Gaming Rules, the Authority is required to provide the concerned online game service provider a reasonable opportunity to respond in *suo motu* determination proceedings and, as far as practicable, complete the determination within 90 days. Where a game is determined to be an online money game, the Authority may initiate action under the Online Gaming Act. Further, the Authority is required to publish a list of online games determined to be online money games, in accordance with the Online Gaming Rules. ## State Gaming Laws While the Online Gaming Act governs online money gaming at the national level, the legal framework governing land-based gambling and gaming establishments continues to be determined primarily by applicable state laws (“Gaming Enactments”). The following section examines the regulation of physical gambling establishments and other offline gaming activities in jurisdictions where such operations are permitted, subject to applicable licensing and regulatory requirements. Furthermore, after the Junglee Games Judgement where it is clarified that states continue to regulate betting and gambling, state Gaming Enactments concerning online gaming have not yet been repealed and should ideally continue to apply concurrently. It needs to be seen in enforcement how the provisions of the Online Gaming Act and Gaming Enactments apply together. Scope of Licences: - Goa, Daman and Diu The Government of Goa issues casino licences to operators that conduct gambling activities in five-star hotels and on offshore vessels. The Goa, Daman and Diu Public Gambling Act, 1976 (“Goa Act”) and notifications issued thereunder contain provisions on the operation of licensed games of electronic amusement/slot machines in five-star hotels as well as table games on board offshore vessels. A licence can only be applied for a maximum of 20 slot machines. However, the Bombay High Court in a recent judgement has held that the Goa Public Gambling (Amendment) Act, 1992, which introduced the provision permitting the licensing of slot machines, had not been brought into force in Daman and Diu. Accordingly, the licensing framework for slot machines under that provision does not extend to Daman and Diu. - Sikkim The Government of Sikkim regulates and licences operators that wish to organise gambling activities under the Sikkim Casinos Games (Regulation) Act, 2002 (“Sikkim Casinos Act”) and the Sikkim Casino Games (Control and Tax) Rules, 2007 (“Sikkim Casino Rules”). Licensees can only conduct gambling operations in five-star hotels with the capability to establish and operate casino games. ## Type of licence needed There is only one type of licence required in each State, i.e., there are no different categories of licences. 1. Goa Process: A licence application for onshore casinos in a five-star hotel or offshore casinos shall be accompanied by an application fee of INR 50,00,000 (approx. USD 52,661), regardless of the number of tables or machines installed. Such fees must be deposited in the government treasury. The licence fee for renewal of licence will be INR 1 Crore (approx. USD 105,351). Tenure: A licence granted shall be valid for a period of 5 years and may be renewed on expiry of such 5 years on payment of the requisite renewal fees, provided that the application for renewal is made before the expiry of the existing licence. For renewal of the licence, the licensee shall follow the same process as indicated above. 2. Sikkim Process: For casinos, a licence application must be made by Indian entities to the state government, which will examine the application. After making any inquiry as it considers necessary, and on the satisfaction that the applicant has a five-star hotel with the capabilities to operate a casino, the State Government can grant a six-month provisional licence on payment of a fee of INR 1,00,000 (approx. USD 1,053). A provisional licence is issued to enable the licencee to set up the necessary infrastructure to commence the operation of casino games at any time within that period. When the applicant fully complies with the terms and conditions of the licence, the Government of Sikkim can grant a regular licence for the operation of casino games for five years on payment of INR 5,00,00,000 (approx. USD 526,703). ## List of documents & type of information needed to support application 1. Goa The applicant must submit the following information through the application form for grant of licence or renewal: (i) full name, (ii) address of the applicant (temporary and permanent), (iii) age of the applicant, (iv) occupation, (v) rates of fees proposed to be charged to the customer, category wise for different games, (vi) number of machines to be installed, (vii) whether the application is for a grant of fresh licence or renewal, if renewal then previous licence number and date of expiry to be provided, (viii) whether tax or relevant fee for the previous year has been cleared and if so, the total amount paid (along with a copy of challan enclosed), (ix) hours during which the games will be conducted. ## Applicant considerations 1. Sikkim There is no such requirement for an applicant to mandatorily be a local company under the Sikkim Casinos Act and Sikkim Rules. Any person or company desiring to obtain a licence must make an application to the Sikkim State Government in the prescribed form and manner. 2. Goa As per the Goa Act, licence for installing and operating games of electronic amusement / slot machines or table games and gaming on board offshore vessels can be applied for by any person or company desirous of obtaining such licence. However, a licence for casino table games on board a vessel can only be granted if such a vessel is registered with the Captain of Ports, Goa, under the Inland Vessels Act, 1917 (since repealed and replaced by the Inland Vessels Act, 2021) or is registered with the Director General of Shipping, India. There is no mandatory requirement to appoint any local representatives under the Goa Act. Further, as mentioned above, the applicant is required to submit a declaration of compliance with the Goa AML/CFT Regulations.

## Attractions Games of skill and popular game formats such as fantasy sports, chess, Ludo and Rummy have historically attracted a large number of players in India. However, pursuant to the Online Gaming Act, online money games are prohibited, irrespective of whether they involve skill, chance, or a combination of both. Accordingly, opportunities in the Indian gaming market are now primarily concentrated in permissible online social games, casual games, e-sports and related gaming services. According to the FICCI–EY Report 2026, India's video gaming sector generated approximately INR 195 billion in revenue in 2025, compared to INR 236 billion in 2024, reflecting a decline of approximately 17% following regulatory restrictions on online money gaming. India has seen three gaming unicorns (Dream Sports, Games24x7, and MPL) and one successful IPO (Nazara Technologies). While these developments reflect the historical growth of India's gaming industry, the prohibition on online money games has resulted in a shift towards permissible gaming formats. Hence, investments and joint ventures with Indian companies engaged in casual gaming, social gaming, e-sports, game development, publishing and related gaming services may present opportunities for investors. Casual gaming continues to be a significant segment of India's gaming industry, supported by in-app purchases, advertising revenues and increasing user engagement. According to the FICCI–EY Report 2026, in-app purchases in video games increased by approximately 15% in 2025. Further, casual family games, battle royales, puzzles and other mobile gaming formats continue to attract a large number of players in India. The Online Gaming Act expressly recognises online social games, including games offered for entertainment, recreation and skill development, which may be offered free of charge or upon payment of subscription or access fees, provided such payments do not constitute stakes or wagers. Accordingly, permissible casual and social gaming formats present opportunities for further growth and investment. E-sports has emerged as an important segment of India's gaming industry, with increasing participation in organised competitive gaming events and tournaments. The Online Gaming Act expressly recognises e-sports and provides for their promotion and development, including through the establishment of training academies, research centres and other supporting infrastructure. Qualifying e-sports may also involve registration or participation fees and performance-based prize money, subject to the conditions prescribed under the Online Gaming Act. The statutory recognition of e-sports may encourage further investment in gaming infrastructure, professional gaming, tournament organisation and related services. India has a large and digitally engaged gaming audience. According to a recent report, the video game market in India recorded a robust year-on-year growth of 18.4%, reaching a total revenue of USD 907.3 million in 2024. This growth was accompanied by a significant expansion in the gaming population, with 475.2 million gamers reported in 2024. Future market-size and user-growth projections should be evaluated in light of the prohibition on online money games. In addition to being the most populous country, India has one of the largest youth populations in the world. This could lead to an increase in the number of players in India, including those who may consider gaming and e-sports as a career option. Ease of access to smartphones and the internet: India has the highest consumption of mobile data per smartphone user on a global level. This makes India a large market of people with easy smartphone and internet access to play online games. According to Sensor Tower's India Mobile Game Insights 2025, India recorded approximately 8.45 billion mobile game downloads in FY 2024–25, making it the world's largest mobile gaming market by downloads. Mobile-based gaming continues to account for a substantial proportion of gaming activity in India, presenting significant opportunities for gaming operators and developers seeking access to a large user base. ## Challenges While games of skill involving monetary stakes were historically permitted in several Indian States, the Online Gaming Act, which came into force on May 01, 2026, prohibits online money games irrespective of whether they involve skill, chance or a combination of both. The prohibition extends to the offering and facilitation of online money gaming services, advertisements promoting such games and financial transactions facilitating these services. Consequently, RMG operators, including operators of fantasy sports, Rummy and other games of skill involving monetary stakes, can no longer offer such games in India. This has significantly restricted market access for operators and investors in the RMG segment. The Indian gaming industry has witnessed significant changes in its taxation framework. With effect from October 1, 2023, GST at 28% was levied on the full-face value of amounts paid or deposited in relation to online money gaming. Subsequently, the GST rate applicable to specified actionable claims, including online money gaming, increased to 40% with effect from September 22, 2025. Further, GST authorities had issued substantial retrospective tax demands against gaming operators in relation to earlier periods. In May 2026, the Supreme Court upheld the constitutional validity of the GST framework applicable to online gaming, including the retrospective operation of the 2023 amendments. These developments may have implications for historical liabilities, valuations and investments in gaming businesses, particularly those previously engaged in RMG.

## Licence Fees Goa (Land-based and Offshore Casinos): A licence application for a land-based casino in a five-star hotel or an offshore casino must be accompanied by an application fee of INR 50,00,000 (approx. USD 52,661), irrespective of the number of tables or machines installed in the licenced premises or the size or capacity of the vessel. The following annual licence fees are payable: For onshore casinos, the annual licence fee varies based on the size of the casino. The fee ranges from INR 11 Crore (approx. USD 1.15 million) to INR 44 Crore (approx. USD 4.63 million) for casinos between 110 square metres to 1100 square metres. For offshore casinos, the fee varies based on the passenger capacity of the vessel. The fee for a vessel with a passenger capacity of up to 220 is INR 27.5 Crores (approx. USD 2.89 million), whereas for a vessel with a passenger capacity of between 220 and 440 it is INR 33 Crores (approx. USD 3.4 million) and for a vessel with a passenger capacity of more than 440 it is INR 44 Crore (approx. USD 4.63 million). Sikkim (Land-based casinos): The provisional licence fee is INR 1,00,000, payable prior to issuance of the licence. The fee for a regular licence is INR 5,00,00,000 for a period of five years. Further, an annual licence fee is payable at such rates and intervals as may be notified by the State Government. Any required minimum guarantee/ security deposit. - Goa: A licencee is required to deposit INR 50,00,000 as a security deposit at the time of grant of a new licence and INR 25,00,000 at the time of renewal. - Sikkim: A licencee is required to furnish a bank guarantee equivalent to the gaming fee notified by the State Government from time to time, as a security deposit. The bank guarantee must remain valid throughout the term of the regular licence. ## Taxes There are no license taxes in most Indian States. ## Goods and Services Tax The GST regime for the online gaming industry has undergone several changes in the recent past. Prior to October 1, 2023, actionable claims arising from betting and gambling were subject to GST at 28% under Rule 31A of the CGST Rules. However, the applicability of GST to online games involving monetary stakes, particularly games of skill, and the corresponding valuation of such transactions remained contentious. The prevalent practice in the industry was to pay GST only on the service fees received by the platforms. However, the tax department levied GST on the entire face value of bets. With effect from October 1, 2023, amendments to the Central Goods and Services Tax Act, 2017 (“CGST Act”) and the Integrated Goods and Services Tax Act, 2017 (“IGST Act”) introduced a specific framework for the taxation of online money gaming (“Amendments”) through Rules 31B and 31C. The Amendments introduced a definition of ‘online money gaming’, which includes online games in which players pay or deposit money or money's worth, including VDAs, in expectation of winning money or money's worth, irrespective of whether such games involve skill, chance or both, or are permissible under applicable law. The Amendments also clarified that actionable claims arising from online money gaming, casinos and horse racing constitute specified actionable claims liable to GST. Corresponding valuation provisions were introduced under Rules 31B and 31C of the Central Goods and Services Tax Rules, 2017 (“CGST Rules”). Under Rule 31B, the taxable value of online gaming transactions is determined based on the total amount paid or payable to, or deposited with, the supplier by or on behalf of a player, including in the form of VDAs. Winnings redeployed by players without withdrawal are not treated as fresh deposits for valuation purposes. Subsequently, the GST rate applicable to specified actionable claims, including betting, casinos, gambling, horse racing, lotteries and online money gaming, was increased from 28% to 40%, with effect from September 22, 2025. Accordingly, the applicable GST rate must be determined with reference to the relevant period of supply. As explained above, in Gameskraft Judgement, the Supreme Court upheld the constitutional validity of GST on actionable claims arising from betting and gambling, including online gaming involving monetary stakes. The Court further held that the 2023 amendments and the corresponding valuation provisions (Rules 31B and 31C) are clarificatory in nature and retrospective in the manner indicated in the judgment. Valuation of online gaming and fantasy sports is accordingly governed by Rule 31B, and of casinos by Rule 31C. Further, as noted above, the Supreme Court in Fanmade11 Fantasy Sports treated the writ petition as covered by Gameskraft and directed the petitioners to alternative statutory remedies before the lower authorities instead. Separately, the Amendments also exclude online money games from the meaning of Online Information Database Access and Retrieval (“OIDAR”) services. OIDAR services have been defined to mean services whose delivery is mediated by information technology over the internet or an electronic network and whose nature renders their supply essentially automated and involving minimal human intervention. Considering the exclusion of online money games from OIDAR services, online gaming operators qualifying as suppliers of online money games should not be considered as supplying OIDAR services in respect of such online money games supplies. Lastly, there is also a requirement of obtaining mandatory registration of offshore online money games operators to discharge their GST liabilities. The registration may be made under a ‘Simplified Registration Scheme’ which allows the offshore operator to obtain a single registration (instead of multiple registrations for supply in different states). In absence of such registration, or non-compliance with the applicable GST payment obligations, the GST department may block any information generated, transmitted, received or hosted in any computer resource used for supply of online money games by such offshore online money games operator. Notwithstanding the foregoing GST registration framework, the offering of online money games is prohibited under the Online Gaming Act, and registration under the IGST Act does not authorise such activities. Further, the prohibition does not extinguish any GST liabilities arising from transactions undertaken prior to the commencement of the Online Gaming Act, which shall continue to be governed by the applicable GST laws. ## Income Tax Act Indian income-tax law provides that winnings from lotteries, crossword puzzles, card games, gambling, betting and other specified games should be subject to tax at flat rate of 30% without allowing any deductions or exemptions. Withholding tax obligations are also imposed on operators. Under the Income-tax Act, 2025 winnings from specified offline games (such as lottery, crossword puzzles, races, card games, and gambling or betting) and net winnings from online games are taxable at 30%. Corresponding withholding obligations are prescribed under Section 393(3) (Table, Serial Nos. 1 and 2). In respect of specified offline gaming winnings, tax is generally required to be withheld where the winnings exceed INR 10,000 in a single transaction. In respect of online games, tax is required to be withheld on net winnings in a user's account at the time of withdrawal and on any remaining net winnings at the end of the tax year, without any minimum monetary threshold. Where winnings are wholly in kind, or partly in cash and partly in kind and the cash component is insufficient to discharge the withholding obligation, the person responsible for paying the winnings is required to ensure that the applicable tax has been paid before releasing such winnings. Notably, the prohibition of online money games under the Online Gaming Act does not extinguish income-tax liabilities or withholding obligations arising from transactions undertaken prior to its commencement. Other tax provisions The Income-tax Act, 2025 also provides for the taxation of income arising from the transfer of VDAs at a rate of 30%, plus applicable surcharge and cess. No deduction is permitted except for the cost of acquisition, and losses arising from VDA transfers cannot be set off against income under any other head or carried forward. Further, Section 393(1) (Table, Serial No. 8(vi)) requires tax to be deducted at source at 1% on consideration paid to a resident for the transfer of a VDA, subject to the prescribed thresholds and conditions. The statutory definition of a VDA is broad and encompasses cryptocurrencies and certain tokens and other digital assets. However, it excludes Indian and foreign currency, central bank digital currencies, and digital assets specifically notified as excluded. Whether in-game currencies, digital collectibles, loot-box rewards or promotional digital assets qualify as VDAs depends on their specific characteristics, manner of issuance and use, and the applicability of any statutory exclusions. Accordingly, each category of asset should be assessed on a case-by-case basis. Where a gaming operator pays winnings arising from an online game, the applicable withholding provisions under Section 393 governing online game winnings should be considered. If the net winnings are wholly in kind, or partly in cash and partly in kind such that the cash component is insufficient to meet the tax liability, the operator should ensure that the tax has been paid before releasing the winnings. This requirement also applies where the winnings are distributed in the form of VDAs. ## Software/ B2B Taxation The tax treatment of software licensing and other business-to-business arrangements depends on how the transaction is structured. The key question is whether it involves (i) a licence of software or intellectual property, (ii) an outright assignment of intellectual property rights, or (iii) the provision of software or technology-related services. Where a payment to a non-resident licensor is characterised as royalty under Section 9(6) of the Income Tax Act, 2025 and is taxable in India, tax is chargeable at the domestic rate of 20% plus applicable surcharge and health and education cess and is subject to withholding. The provisions also allow the non-resident to rely on the applicable Double Taxation Avoidance Agreement (“DTAA”) to the extent it is more beneficial, subject to relevant conditions for treaty eligibility, including but not limited to furnishing a tax residency certificate. The domestic definition of royalty expressly includes the transfer or grant of rights to use computer software. However, the applicable treaty may define royalty more narrowly. In Engineering Analysis Centre of Excellence Pvt. Ltd. v. CIT (2021) 432 ITR 471 (SC), the Supreme Court held that payments for software did not constitute royalty under the relevant treaty provisions where the arrangements did not grant rights in the copyright itself. Accordingly, characterisation should be determined by examining the rights actually granted under the agreement, read with both the domestic and applicable treaty definitions. Further, the applicability of the General Anti-Avoidance Rule (“GAAR”), should also be considered where relevant. Payments to non-residents for services that involve neither an outright assignment of IP nor a licence of software may be taxable as fees for technical services (“FTS”) under Section 9(7), also taxed at 20%. The applicable DTAA must be examined separately: some treaties do not contain an FTS article, while others restrict the definition to services that make available technical knowledge, experience, skill or know-how. Where the payment is not taxable as FTS or royalty under the applicable treaty, it may be taxable as business profits only if the non-resident has a permanent establishment (PE) in India, subject to the treaty's specific provisions and any other applicable rules. For GST purposes, the import of software licensing or technology-related services by an Indian recipient is generally treated as an import of services under the IGST Act, 2017. Where the supply is taxable and the reverse charge mechanism applies, GST is generally payable by the Indian recipient at the applicable rate, commonly 18%, subject to the nature of the supply and any applicable exemptions or special provisions. OIDAR services supplied by a foreign supplier to non-taxable online recipients in India are subject to separate rules, including supplier registration and tax-payment obligations where applicable. An Indian business recipient may be eligible to claim input tax credit, subject to the conditions under the GST law.

Under the Online Gaming Act, payments for subscriptions, one-time access fees and other permitted revenue models that do not involve paying money or other stakes in expectation of monetary enrichment are permitted for social gaming. However, in-game currencies, coins, tokens or other virtual items purchased in social games should not be redeemable or convertible into money, since 'other stakes' under the Online Gaming Act extends to credits, coins, tokens and similar objects purchased with money, and the Authority considers the monetisation of in-game assets outside the game when determining whether a game is an online money game. Registration or participation fees are permitted for e-sports, provided they are paid solely for the purpose of entering the competition or covering administrative costs. However, the Online Gaming Act prohibits any bank, financial institution or other person facilitating financial transactions or authorization of funds from facilitating any transaction towards payment for an online money gaming service. A contravention is punishable on par with offering online money games, i.e., with imprisonment of up to three years and/or a fine of up to INR 1 crore. Further, the Online Gaming Rules read with the Advisory, require such institutions or persons to comply with the Authority’s directions, including to restrict transactions for online money games. Accordingly, banks and financial institutions are made to be ‘gatekeepers’ of the overall ecosystem to ensure that only compliant gaming models are operating in the industry. Previously, AD Banks were comfortable processing remittances for games of skill, on the basis that such games fell outside the Schedule I to the FEMA (Current Account Transactions) Rules, 2000, which prohibit remittances for lottery tickets, sweepstakes and any other hobby etc. which were largely understood to constitute games of chance/ gambling. However, since the Online Gaming Act prohibits online money games irrespective of skill or chance and imposes an obligation on financial institutions or persons facilitating or authorizing the transaction to restrict such transactions, outward remittances for such games are likely to be restricted. Payment methods traditionally accepted on gaming platforms in India include methods such as debit/credit cards, and Unified Payments Interface (“UPI”) which is a real-time mobile payment method that allows users to transfer funds between bank accounts, net banking, and prepaid payment instruments such as wallets. Certain gaming operators accept payment in cryptocurrency. Under the existing Gaming Enactments, specifically under Nagaland Rules, it is the licencee’s responsibility to ensure that all payments on the site are made through registered and recognised payment modes including credit/debit cards, net banking, use of e-wallets, etc. that comply with the Reserve Bank of India (“RBI”) rules and regulations. Payments in cash, if any, are permissible subject to compliance with KYC norms and full disclosure. Under the TN Act, banks, financial institutions and payment service providers are prohibited from engaging in any transaction or authorisation of funds towards online gambling or any online game of chance specified under the Act. Applicants for registration are required to disclose details of payment modes accepted from players, as well as details of certifications for payment gateways.

The advertising and marketing of gaming activities in India are governed by the Online Gaming Act, the Consumer Protection Act, 2019 (“CPA”), applicable Gaming Enactments, the BNS, sector-specific advertising regulations and applicable self-regulatory standards. Under the Online Gaming Act, no person may make, cause to be made, aid, abet, induce or otherwise be involved in making any advertisement, through any medium, including electronic means, which directly or indirectly promotes or induces any person to play an online money game or engage in any activity promoting such game. Accordingly, advertisements promoting online money games are prohibited irrespective of whether the underlying games involve skill, chance or both. The prohibition also extends to surrogate advertising and promotional arrangements that indirectly encourage participation in prohibited online money games. Besides the Online Gaming Act, the following laws and regulations are relevant to advertising and marketing activities: - Consumer Protection: The CPA classifies the offering of prizes with the intention of not providing them as offered and the conduct of a contest, lottery, game of chance or skill for the purpose of promoting a product/business interest as an ‘unfair trade practice’. - The Consumer Protection (General) Rules, 2020 clarify that the following are not covered under the ambit of unfair trade practices: lotteries permitted under the Lotteries (Regulation) Act, 1998, and games of chance or skill not prohibited under the Public Gambling Act, 1867, which are not gambling, and wherein success depends to a substantial degree upon skill, and not chance. However, this exemption does not authorise activities or advertisements otherwise prohibited under the Online Gaming Act or other applicable laws. - The Guidelines for Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements, 2022 (“Misleading Ads Guidelines”), issued by the Central Consumer Protection Authority (“CCPA”), regulate misleading advertisements, endorsements and surrogate advertisements. Advertisements promoting products or services prohibited under applicable law cannot be justified through surrogate branding or endorsements. - Criminal laws and Gaming Enactments: The BNS prohibits advertisements for lotteries, unless they comply with the provisions of the lottery laws, including Lotteries (Regulation) Act, 1998 and state lottery regulations. Separately, the PCA prohibits advertisements of prize competitions, unless duly authorised by the relevant authority. Applicable Gaming Enactments may also impose restrictions on the advertisement or promotion of gambling activities, including land-based gaming operations. - Content-related Laws: Games and gaming websites in India are subject to content-related laws. For example: the BNS and the Indecent Representation of Women (Prohibition) Act, 1986 and the IT Act penalise obscene content. - Cable Television: The Cable Television Networks Rules, 1994 prohibit the public exhibition of advertisements that violate the Advertising Standards Council of India (“ASCI”) Code for Self-Regulation of Advertising Content in India (“ASCI Code”) on cable service only (i.e., broadcast on television). Please refer to the ‘Self-regulation’ sub-section below for more details. - Additionally, the Programme and Advertising Codes prescribed under the Cable Television Networks Rules, 1994 lay down certain guidelines for advertisements on cable services only, such as not inciting people to commit crime, cause disorder, violence, breach of law, glorify violence or obscenity in any way and not presenting criminality as desirable. Further, in February 2024, ASCI and the Department of Consumer Affairs held consultations with stakeholders including online gaming associations on measures to curb rampant surrogate ads, including by offshore gaming operators. - Additionally, in March 2024, ASCI entered into a partnership with CCPA, where ASCI agreed to forward any advertisement to the CCPA that is non-compliant with the ASCI Code and could potentially violate the CPA or its accompanying guidelines. This is in furtherance of ASCI and CCPA’s collective effort towards promoting transparency and fairness in advertising and jointly addressing violations. - Marketing: Marketing communications sent through telecom networks, including promotional calls and messages, are subject to the Telecom Commercial Communications Customer Preference Regulations 2010, which prohibit unsolicited commercial communications to persons that have opted out of receiving them. These regulations also provide that telemarketing can only be carried out by operators that obtain a licence from the Telecom Regulatory Authority of India. Enforcement: Direct and surrogate advertising of foreign sports betting platforms in India has come under significant scrutiny by the Ministry of Information and Broadcasting (“MIB”) and the Department of Consumer Affairs in recent times, specifically before the enactment of the Online Gaming Act. In consultation with the Department of Consumer Affairs, the MIB has issued five advisories between June 2022 and March 2024 to newspapers, TV channels, digital news publishers, intermediaries OTT platforms, endorsers, and influencers on social media strongly advising them against showing: - advertisements of online sports betting platforms; and - surrogate advertisements for offshore sports betting platforms in the guise of sports news websites (and targeting such advertisements towards Indian audiences). The advisories contained examples of such online advertisements, specifically illustrating several prominent offshore sports betting platforms. The advisories indicated that such advertisements are prohibited under the CPA and the Misleading Ads Guidelines. They also suggest that MeitY has the power to direct intermediary platforms to take down such advertisements if they appear on such platforms. Further, in March 2024, the CCPA published an advisory on “Prohibition of Advertising, Promotion, and Endorsement of unlawful activities prohibited under various laws” (“CCPA Advisory”). The CCPA Advisory stated that there has been a rise in the instances of direct and surrogate advertisements as well as endorsements of activities like betting and gambling. The CCPA Advisory quoted the advisories published by MIB and relevant sections of the Misleading Ads Guidelines, stating that “advertisements expressly prohibited in prevalent laws are also prohibited under the Misleading Ad Guidelines” and were subject to rigorous scrutiny. News reports suggest that Bollywood celebrities and other individuals associated with promotions of illegal gambling platforms have received notices from the CCPA for violation of the Misleading Ads Guidelines, which, inter alia, prohibit surrogate advertising. Further, pursuant to the Advisory, the Authority called upon entities whose operations, services or platforms may facilitate online money gaming, including advertising agencies, social media intermediaries, OTT platforms and other technology service providers, to review their internal policies, discontinue activities contravening the Online Gaming Act and implement appropriate internal compliance systems and safeguards. ## Self-regulation ASCI is a self-regulatory industry body that has been set up for the regulation of advertisements on television/broadcasting. With regard to prohibitions under the Gaming Enactments, the relevant police/judicial authorities in the respective States implement and enforce the Gaming Enactments. The ASCI Code is self-regulatory for all types of advertisement, except for cable television advertising as the Cable Television Networks Rules, 1994 include the ASCI Code. The ASCI Code defines an advertisement as “a paid-for communication, addressed to the public or a section of it, the purpose of which is to influence the opinions or behaviour of those to whom it is addressed. Any communication which in the normal course would be recognized as an advertisement by the general public would be included in this definition, even if it is carried free-of-charge for any reason.” Under the ASCI Code, advertisements which are in breach of the law, or that (directly or indirectly) propagate products which are banned under law are prohibited. ASCI had previously issued guidelines governing advertisements for online gaming involving real-money winnings, including prescribed disclaimers concerning financial risks and restrictions on advertisements targeting minors or presenting such gaming as an income opportunity. However, these guidelines do not appear to be in circulation any longer, as advertisements for online games involving real-money winnings are now prohibited.

Under the Online Gaming Act: The Authority is empowered to determine whether an online game is an online money game. Based on the outcome of the determination, the Authority may initiate action under the Online Gaming Act and issue orders. The Online Gaming Rules prescribe the circumstances in which an online game is required to undergo determination, including where (i) the Authority, on its own motion, directs an online game service provider to have its game determined; (ii) an online game service provider intends to offer an online game as an e-sport; or (iii) the Central Government notifies a category of online social games requiring determination. In making such determination, the Authority considers factors including (i) whether the online game involves payment of fees, deposit of money or other stakes; (ii) whether users have an expectation of winning monetary or other enrichment in return for such payments; (iii) the nature and purpose of the payments, including whether they constitute participation fees, subscription or access fees, or bets or wagers; (iv) the structure and operation of the revenue model; and (v) whether in-game rewards, benefits or assets may be transferred, redeemed or monetised outside the game environment. Where an online game is determined to be an online money game, the Authority may initiate action under the Online Gaming Act. The Authority is also required to publish a list of online games determined to be online money games. Upon receiving directions from the Authority, banks, financial institutions and other persons facilitating financial transactions or authorisation of funds are required to suspend, restrict or discontinue transactions relating to such online money games, without delay. The Authority is further empowered to maintain records of online games determined or registered by it, inquire into complaints, issue directions concerning the offering, advertising and financing of online games, and issue guidelines and codes of practice in consultation with the Central Government. As per reports, until September 01, 2026, no online game has been granted registration under the Online Gaming Act. MeitY has further informed the Central Information Commission in response to a Right-to-Information (“RTI”) application that over 201 complaints have been received related to online gaming. States with licensing regimes/permit requirements: Goa, Daman and Diu –The Home Department, Gaming Commissioner, Government of Goa, is the licensing authority for casinos under the Goa Act. Sikkim – the Director, Sikkim State Lotteries, under the Finance Department of the Government of Sikkim is the licensing authority for Sikkim under the Sikkim Casinos Act. West Bengal - the licensing authority is the Commissioner of Police for conducting games of skill in a public place, such as a public market, fair, carnival or street. Physical – For states without licensing regimes/permit requirements, there are no specific regulating bodies governing the offering of games in the physical/offline format. Others – Over the past few years, enforcement action has been taken by several other Indian regulatory authorities for violations by gambling operators, such as: - ED, under the FEMA and PMLA, - Tax authorities, under the Income-tax Act, 2025 and the applicable GST laws (Central Goods and Services Tax Act, 2017, Integrated Goods and Services Tax Act, 2017, and the state GST laws). - The Central Consumer Protection Authority (“CCPA”) under the Consumer Protection Act, 2019; - The authorized agencies under the Information Technology Act, 2000 (“IT Act”), along with the powers of the nodal officer to issue takedown requests under Section 79; - The police and other relevant law enforcement agencies. ## Supervision by Regulator Under the Online Gaming Act, the Authority is empowered to inquire into the nature of online games, issue directions to online game service providers, maintain records of determined and registered games, inquire into complaints and coordinate with relevant governmental and law enforcement authorities. Under the Sikkim Casinos Act, every licencee is required to submit a monthly form to the state government with the statement of gross gaming yield and levy payable to the Government. Under the West Bengal Gambling and Prize Competitions Act, 1957 (“West Bengal Act”), every person who promotes or conducts a prize competition is required to keep accounts relating to such competition and submit a statement of accounts to the licensing authority, i.e., the Commissioner of Police. Under the TN Act, TNOGA is required to collect and maintain information and data with respect to the activities of online game providers. The TNOGA is required to send periodical reports to the State Government of Tamil Nadu. The local online games providers must also provide several details to TNOGA at the time of application. As discussed above, the PMLA imposes certain AML/KYC and reporting obligations on ‘reporting entities’, including persons carrying on activities involving games of chance for cash or kind (including casinos), to verify the identity of clients and maintain records, report suspicious transactions, etc. The PMLA also requires such ‘reporting entities’ to inter alia furnish information to the Director FIU-IND, as and when required. Enforcement against licenced operators There is no pan-India licensing regime for online gaming operators. Hence, we have discussed general enforcement action against operators in this section. Please note that for the States that do have a licensing regime in India, we have not come across any enforcement action by their respective licensing authorities. Enforcement actions by Indian regulators: Enforcement Directorate: As per reports, the ED has undertaken investigations and enforcement actions involving online betting and gaming platforms, offshore gaming operators, payment intermediaries and persons involved in the promotion or facilitation of unlawful gaming activities. In the last two years, the ED has pursued a series of enforcement actions against RMG platforms under PMLA. In September 2026, the ED provisionally attached assets worth approximately INR 4.42 billion, held by entities associated with shareholders of a prominent RMG company, concerning its online rummy platforms. The ED alleges, inter alia, the use of undisclosed bots in cash games, withdrawal charges, and the routing of proceeds to shareholders through dividends and share buybacks. As per reports, the total assets attached, frozen or seized in the investigation stand at approximately INR 28.43 billion. In March 2026, the ED provisionally attached immovable properties in India and Dubai having a reported value of approximately INR 1,700 crore in connection with its investigation into an online betting platform. In November 2025, the ED arrested two directors of a prominent RMG company in connection with alleged money laundering involving the use of undisclosed AI-powered bots in real-money games and restrictions on withdrawals of player funds. Subsequently, in January 2026, the ED filed a prosecution complaint under the PMLA, and in February 2026, provisionally attached approximately USD 53.2 million held in overseas bank accounts in the United States and Singapore. In June 2025, the ED questioned film celebrities and cricketers in connection with their promotion of illegal online betting platforms. In May 2025, the ED investigated alleged diversion of funds belonging to educational institutions amounting to INR 53 million through online gambling platforms. During the raids, the agency seized around INR 3.8 million in cash, 49 debit cards associated with mule accounts, and various digital devices. In May 2024, ED seized nearly INR 900 million from cryptocurrency wallets held with various crypto exchanges in an investigation into an online gaming app. ED stated in its press release that the app masqueraded as an online gaming platform and promised users high returns on their investments. In August 2024, the ED also raided a payment service provider for alleged enabling / routing proceeds of unlawful online gambling in contravention of the PMLA. The ED also seized approximately INR 5 million pursuant to the investigation. In 2021, the ED had issued notices to several players who were using international debit and credit cards to bet on Euro Cup matches and remitting funds for RMG to offshore platforms. ## Tax Litigations In September 2022 the DGGI issued show cause notices to Gameskraft, a rummy platform, demanding about ₹21,000 crore on the basis that its supplies were actionable claims in betting and gambling taxable at 28%, not platform services. The Karnataka High Court quashed the notices in May 2023, holding that rummy is a game of skill. On 27 May 2026, in the Gameskraft Judgement, the Supreme Court reversed that order, restored the notices, and dismissed the connected writ petitions by online gaming, fantasy sports and casino operators. The Supreme Court upheld the constitutional validity of the levy, holding that the distinction between games of skill and games of chance is immaterial for determining the GST treatment of online money gaming. It further held that the 2023 amendments to the GST framework, introducing Rule 31B for online money gaming and Rule 31C for casinos, are clarificatory in nature and operate retrospectively, bringing into the tax ambit even the period prior to October 01, 2023. Several gaming operators had filed review petitions against the Gameskraft judgment which have been rejected by the Supreme Court. Further, in Fanmade11 Fantasy Sports Pvt. Ltd. v. Union of India, the Supreme Court treated fantasy sports operators’ writ challenges to show cause notices as substantially covered by Gameskraft, declined to examine the merits, and directed them to alternative statutory remedies before lower authorities. As per news reports, the aggregate proposed GST demands against Dream11, Gameskraft Technologies Private Limited and Play Games24x7 Private Limited were reduced from approximately INR 70,213 crore to INR 17,298 crore in confirmed principal tax liabilities, representing a reduction of approximately 75%. This followed the recalculation of taxable value based on player deposits rather than cumulative stakes, including redeployed winnings. Police: Police, across all States in India, have been active in undertaking enforcement actions against activities involving betting, gambling, etc. Some examples of such enforcement actions by the police are discussed below: In April 2026, the Goa Cyber Crime Police arrested six individuals for allegedly operating an online betting racket involving Indian Premier League (“IPL”) cricket matches. In May 2026, the Gurugram Cyber Crime Police arrested four individuals for allegedly operating an online betting and cyber fraud racket through an online gaming platform. In April 2025, the Chhattisgarh Police arrested 14 individuals for allegedly operating an online betting racket through an online betting application during IPL matches. The police seized 67 mobile phones, eight laptops, 94 ATM cards and other equipment, along with records of betting transactions worth approximately INR 30 lakh. In May 2025, the Chandigarh Police arrested five individuals for allegedly operating an IPL betting racket from a rented accommodation. The police seized 43 mobile phones, six laptops, two tablets and other electronic equipment allegedly used for facilitating betting transactions. In December 2024, Gurugram police arrested three men for allegedly running an online gambling racket and seized large amount of equipment from the apartment, including but not limited to, laptops, passports, webcams etc. In November 2024, the Gurugram Cyber Police busted an online gambling call centre and arrested 9 men allegedly involved in the activity. The First Information Report has been filed on the grounds of cheating under the Bharatiya Nyaya Sanhita, 2023 (“BNS”). In April 2024, Jharkhand police conducted a raid and seized lottery tickets worth INR 0.9 million. In April 2024, Pune police conducted raids and arrested ten individuals who were suspected of being a part of an international betting syndicate involved in online betting on IPL matches. The police also seized goods worth INR 0.2 million. Three people were arrested in Indore, India for their involvement in an illegal online cricket betting ring. The police conducted an investigation along with a raid, and apprehended suspects accused of operating the betting ring using various online platforms. Betting: The ED conducted searches in multiple states in India in relation to an extensive betting operation, and as of April 2025, seized/ frozen /attached movable & immovable assets valued at approximately INR 30,024.7 million. Subsequently, in March 2026, the ED provisionally attached immovable properties in India and Dubai valued at approximately INR 1,700 crore in connection with the same investigation. The Income Tax Department seized cash and jewelry aggregating approximately INR 3.89 crore (approximately USD 501,688) from premises linked to a Mumbai-based business group, reportedly operated by two individuals, engaged in online gaming and betting activities. On 30 December 2022, Chhattisgarh Police apprehended an Instagram influencer, for promoting an online betting application on Instagram. The police reportedly initiated preventive proceedings against him for promoting online gambling activities. Offshore enforcement: As such the Gaming Enactments are State laws and can be argued to be not applicable to activities outside the relevant state, including offshore operators, however, Online Gaming Act expressly extends to online money gaming services offered within India or operated from outside India. Accordingly, offshore operators offering online money games to users in India are subject to the prohibitions under the Online Gaming Act, irrespective of their place of incorporation or operation. However, while the Online Gaming Act expressly provides for extraterritorial application, it would be practically difficult for the Government to enforce the criminal penalties, fine and imprisonment of officers and directors overseas, though theoretically possible through India’s Mutual Legal Assistance Treaties with various countries where the processes and criteria may be cumbersome or difficult to achieve. In the event any specific action is initiated against a foreign entity, while the enforcement action against such foreign entity would be a prolonged process and practically difficult process, there is a risk that any director/officer of the foreign entity may be prosecuted when they travel to India. However, to enforce this extra territorially, it's a challenge owing to the procedures and provisions under various international treaties. The enforcement through blocking of websites, however, can be enforced through court orders. Under the Online Gaming Act though, prohibited online money games can be blocked as per the provisions and safeguards under the Information Technology (Procedure and Safeguards for Blocking for Access of Information by Public) Rules, 2009. As discussed above, there has been heightened scrutiny and enforcement action against foreign gambling and sports betting platforms offered remotely in India by several Indian regulatory authorities. In fact, as mentioned above, MeitY has ordered intermediary platforms to block access to these apps through several blocking orders issued between 2022 – till date. In April 2026, the Government informed Parliament that 8376 betting and gambling URLs have been blocked or actioned against as of March 2026. Separately, the DGGI in coordination with MeitY, had blocked 357 websites/URLs associated with illegal or non-compliant offshore online money gaming platforms. In April 2026, MeitY issued an advisory to VPN providers and other intermediaries directing them not to enable access to blocked online betting and prediction market platforms. Typical triggers for enforcement against unlicensed operators: Apart from the direct enforcement which may be anticipated against offshore platforms under the Online Gaming Act, some of the other triggers for regulatory action against offshore gambling providers are (1) direct and surrogate advertisement of foreign sports betting; (2) violation of FEMA and Current Account Rules; (3) money laundering and financial fraud; and (4) tax related issues. Some of the triggers for regulatory action against Indian gaming operators are: (1) offering prohibited online money games, (2) non-compliance with applicable licensing, registration and regulatory requirements; (3) tax related issues, and (4) misleading advertisements and unfair trade practices; and (5) contraventions of applicable anti-money laundering and other financial regulations.

The Online Gaming Act came as a surprise for the Indian gaming industry. The Bill was introduced and passed by both Houses of Parliament within two days in August 2025, and replaced a largely State-led framework, under which games of skill played for stakes were historically permitted in most States, with a nationwide prohibition on online money games, irrespective of whether they are based on skill, chance or both. The Online Gaming Act was challenged almost immediately before the High Courts of Delhi, Karnataka and Madhya Pradesh, principally on the ground that a blanket prohibition, including judicially recognised games of skill, is disproportionate and arbitrary and violates Articles 14 and 19(1)(g) of the Constitution. On the Central Government’s petition, the Supreme Court transferred these challenges to itself, and they remain pending before it. Separately, in the Junglee Games Judgement, the Supreme Court upheld the Tamil Nadu and Karnataka laws prohibiting online games played for stakes, holding that States are competent under Entry 34 of List II of the Seventh Schedule to regulate and prohibit betting and gambling, and that staking money on the outcome of a game, even a game of skill, constitutes betting. While this judgment does not decide the validity of the Online Gaming Act, it substantially weakens the skill-based defence on which the RMG industry had historically relied. Pending the Supreme Court’s decision, the Online Gaming Act and the Online Gaming Rules remain in force, and operators should proceed on the basis that the prohibition on online money games is the operative position. Enforcement has since commenced, and online gaming platforms that continue to offer online money games may begin receiving show cause notices, along with blocking, payment-restriction and other directions. As the Authority’s determination process progresses, it is expected to publish lists of online games determined to be online money games, together with guidelines, codes of practice and directions to operators, intermediaries and payment providers, which will further define the boundary between prohibited and permissible formats.