Gambling and betting law in India is one of the most fragmented, fast-changing, and constitutionally complex areas of Indian law. The bottom line for 2026: physical gambling is largely illegal except in a few states; online gambling is in intense legal flux following the Promotion and Regulation of Online Gaming Act (PROGA), 2025; fantasy sports remain legal in most states as games of skill; casinos operate legally in Goa, Sikkim, and Daman; and all gambling winnings are taxable at 30%.
The Constitutional Framework: Gambling is a State Subject
Under Entry 34 of List II (State List) in the Seventh Schedule of the Constitution, gambling and betting is exclusively a state subject. Each of India’s 28 states has the power to permit, regulate, or prohibit gambling within its territory. The central government can regulate gambling in the eight union territories and also has power over taxation, lotteries (Union List), and technology regulation.
The Public Gambling Act, 1867 – a colonial-era law – serves as the baseline for states that have not enacted their own legislation. Several states including UP, MP, and Punjab still follow this 156-year-old Act. Others like Goa, Sikkim, and Nagaland have enacted their own modern gambling laws.
The Promotion and Regulation of Online Gaming Act (PROGA), 2025
The biggest development in Indian gambling law is the Promotion and Regulation of Online Gaming Act, 2025 (PROGA), which received Presidential assent on August 22, 2025. This is a landmark central law that represents a fundamental shift in approach.
PROGA imposes a blanket prohibition on all “online money games” – defined as any game played for money or convertible stakes with both the expectation and possibility of a reward – regardless of whether skill or chance is involved. Penalties: offering, operating, or advertising real-money online games – up to 3 years imprisonment and fine up to Rs 1 crore. Advertising: up to 2 years imprisonment and Rs 50 lakh fine. Celebrities and influencers endorsing these products face similar penalties.
PROGA simultaneously establishes a National e-Sports Authority to promote competitive gaming, issue compliance rules for e-sports, and oversee fair play standards. As of March 2026, PROGA has received Presidential assent and been notified in the Official Gazette but has not yet been formally brought into force. Its constitutional validity is being challenged before the Supreme Court – particularly the key question of whether Parliament can encroach on what is traditionally a state subject under Entry 34.
What Is Currently Legal: State by State
Casinos: Legal in Goa (land-based and floating casinos on Mandovi River under the Goa, Daman and Diu Public Gambling Act, 1976); Sikkim (Casino Sikkim, Casino Mahjong); and Daman. Only three states/UTs permit casinos. Goa alone contributed Rs 135 crore to state revenue from casinos as of recent years.
Fantasy Sports: Legal in most states as games of skill. Courts have consistently held that fantasy cricket, football, and kabaddi involve significant skill in team selection and are not mere gambling. The 2025 “Skill vs Chance” judgment clarified fantasy cricket is a skill game entitled to the skill games exemption. States like Tamil Nadu, Andhra Pradesh, and Karnataka have attempted to ban online skill games including fantasy sports, with mixed court results.
Lotteries: 13 states run government-operated lotteries which are legal. Online lotteries require state government authorisation. Horse racing betting is legal (Supreme Court held it to be a game of skill) in states with licensed turf clubs including Maharashtra, Telangana, and West Bengal.
Online sports betting on offshore platforms: Technically in a grey area – no central law explicitly prohibits Indian users from accessing foreign platforms, but the Enforcement Directorate has pursued cases under FEMA for outward remittances for betting.
Taxation of Gambling Winnings
All gambling winnings are taxable in India regardless of source. Under Section 194BA of the Income Tax Act: 30% TDS on net winnings (total withdrawals minus deposits and opening balance) from online gaming. For offline gambling (casinos, horse racing, lottery): 30% tax under Section 115BB on specified categories. Winners must declare all gambling income under “Income from Other Sources” in their ITR. Failure to disclose is tax evasion with penalties up to 200% of unpaid tax.
Final Thought
Indian gambling law in 2026 is at an inflection point. Physical gambling is largely illegal except in Goa, Sikkim, and Daman. The PROGA 2025 represents a dramatic centralisation move that could fundamentally reshape online gaming if it survives constitutional challenge. Fantasy sports remain legal as skill games for now. Horse racing and state lotteries are the only clearly legal traditional gambling activities in most states. If you bet or gamble, declare your winnings – they are taxable at 30%. The law is evolving fast – what is permitted today may be prohibited tomorrow as PROGA’s implementation and court challenges unfold.
Frequently Asked Questions (FAQs)
Q1. Is betting on cricket illegal in India?
As of March 2026, sports betting including cricket is illegal under most state gambling laws. There is no licensed domestic sports betting market in India (unlike horse racing which is legal). The Law Commission of India recommended legalising and regulating sports betting in 2018, and PROGA 2025 does not create a regulated sports betting market. Millions of Indians bet on cricket through illegal domestic bookmakers and offshore platforms – an estimated Rs 3,00,000 crore ($35 billion) annually. This activity is illegal and carries criminal risk.
Q2. Is Dream11 and fantasy cricket legal in India?
Fantasy sports (Dream11, My11Circle, MPL etc.) have been held by courts to be games of skill rather than gambling, and are therefore legal in most states. The Supreme Court in 2021 upheld earlier High Court rulings that fantasy sports require significant skill and do not constitute gambling. However, the PROGA 2025 (not yet in force as of March 2026) could potentially affect even skill-based online games if it is brought into force and its constitutional challenge fails. Tamil Nadu and Andhra Pradesh have attempted their own restrictions on fantasy sports.
Q3. Can I play online poker or rummy for real money in India?
Online rummy has been held to be a game of skill by the Supreme Court and is legal in most states. Online poker is legal in some states (Nagaland and Sikkim have explicit licensing for online skill games including poker) but illegal in others. Andhra Pradesh and Tamil Nadu have specifically banned online real-money poker and rummy. PROGA 2025, when brought into force, may further restrict this landscape – but as of March 2026 the implementation status is uncertain.
Q4. Can I be prosecuted for gambling on foreign betting sites in India?
Currently, using offshore betting platforms (Bet365, 1xBet, Betway etc.) falls into a legal grey area. There is no specific law directly criminalising an Indian resident for accessing offshore platforms. However: FEMA 1999 prohibits outward remittances for betting; banks can block payment processing to unlicensed gambling operators (RBI guidance); PROGA when in force will target offshore platforms accessible from India; and the Enforcement Directorate has pursued cases against high-value bettors under FEMA. The practical risk for small recreational betters is currently low but real.
Q5. How much tax do I pay on gambling winnings?
All gambling winnings are taxed at 30% flat (plus 4% cess = 31.2% effective) in India regardless of amount. For online gaming: 1% TDS on net winnings per withdrawal. For casino, horse racing, lottery: TDS at 30% on winnings above Rs 10,000. Report all gambling income under “Income from Other Sources” in your annual ITR. Using foreign platforms does not exempt you from Indian tax obligations – if you win, you owe 30% tax on the winnings. GST is also levied at 28% on the “face value” of bets for licensed gambling operators.
