Gambling is largely prohibited at the federal level but regulated by individual states; only a few states allow casinos or online gambling, while most forms remain illegal or unregulated.
Expert Gambling Regulation Guidance
Professional consultation on gambling regulations and legal compliance requirements for operators
Regulatory AuthorityMinistry of Electronics and Information Technology (MeitY) at federal level; state-level authorities in Goa, Sikkim, Nagaland, and Tamil Nadu
License CostVaries
Regulation by Activity Type
Casinos
Regulated
Online Casinos
Regulated
Betting
Prohibited
Online Betting
Prohibited
Lotteries
Prohibited
Poker
Regulated
Highlights
Gambling regulation in India is highly decentralized, with each state empowered to set its own laws and licensing requirements.
The main federal law, the Public Gambling Act of 1867, prohibits running or visiting gambling houses but does not cover online gambling.
Only a few states—Goa, Sikkim, and Daman—permit land-based casinos; most states ban casino operations entirely.
Online gambling remains largely unregulated at the federal level, with some states explicitly banning it and others allowing licensed operations.
A 28% Goods and Services Tax (GST) applies to online gaming, casinos, and horse racing, significantly impacting the sector's economics.
Games of skill (such as rummy and poker) are generally legal, while games of chance are mostly prohibited, subject to state interpretation.
India is considering a new federal law to address online gambling, aiming to unify fragmented regulations and enhance consumer protection.
Technical Compliance Assistance
Our specialists will help you understand technical compliance requirements for gambling operations
Legislation
Primary Legislation
The primary legislation governing gambling in India includes the "Public Gambling Act of 1867", which prohibits the operation of public gambling houses and visiting such establishments. However, this act does not explicitly address online gambling. The "Prize Competition Act of 1955" also plays a role by regulating competitions that offer prizes. Additionally, individual states have their own laws and regulations regarding gambling. For instance, some states like "Sikkim" and "Nagaland" have enacted laws specifically addressing online games of skill. The "Information Technology Act 2000" provides a framework for regulating cyber activities but does not specifically mention gambling. Furthermore, the "Foreign Exchange Management Act 1999" restricts foreign exchange transactions related to gambling activities.
Regulatory Authority
In India, the regulatory framework for gambling is decentralized, with significant authority vested in state governments. However, several federal bodies play crucial roles in overseeing aspects of the gambling industry: - "Ministry of Electronics and Information Technology (MeitY)": Oversees digital activities, including online gaming, under the Information Technology Act 2000. - "Enforcement Directorate (ED)": Enforces the Prevention of Money Laundering Act concerning financial transactions related to gambling. - "Central Board of Indirect Taxes and Customs (CBIC)": Responsible for implementing and collecting taxes on gambling activities. - "Ministry of Home Affairs (MHA)": Involved in discussions regarding new legislation for online gambling and betting.
License Types
Overview of Gambling Licensing in India
India’s gambling licensing system is highly fragmented and primarily governed at the state level. There is no unified federal licensing regime for gambling; instead, each state determines whether and how gambling activities are licensed. Only a few states offer formal licensing for gambling, with Goa, Sikkim, and Daman being the most notable. Online gambling licensing is even more limited and varies by state, with Sikkim and Nagaland providing specific frameworks for certain online activities.
Types of Gambling Licenses Available
Casino Licenses (Land-Based):
Available in Goa, Daman, and Sikkim.
Goa and Daman: Licenses for land-based and offshore (floating) casinos, typically restricted to five-star hotels or offshore vessels.
Sikkim: Licenses for land-based casinos within the state.
Online Gambling Licenses:
Sikkim: Sikkim Online Gaming (Regulation) Act, 2008 allows licensing for online casino games and sports betting, but operations are restricted to within the state.
Nagaland: Nagaland Prohibition of Gambling and Promotion and Regulation of Online Games of Skill Act, 2016 licenses only “games of skill” (e.g., poker, rummy, fantasy sports).
Lottery Licenses:
13 states operate government lotteries under state-specific licensing regimes.
Horse Racing Betting Licenses:
Permitted in several states via specific licensing for racecourses and bookmakers.
Application Processes and Duration
Casino Licenses (Goa, Daman, Sikkim):
Applicants must apply to the respective state government’s Home Department or designated authority.
Licenses are typically granted to companies meeting stringent criteria, including financial stability and background checks.
Duration: Licenses are usually valid for one year and are renewable upon continued compliance.
Online Gambling Licenses (Sikkim, Nagaland):
Application to the state’s designated gaming authority.
Submission of detailed business plans, technical infrastructure, KYC/AML compliance, and proof of financial capability.
Duration: Licenses are generally valid for one year, with annual renewal subject to regulatory compliance.
Lottery and Horse Racing Licenses:
Applications are made to the respective state lottery or racing board.
Duration and renewal terms vary by state.
Eligibility and Key Requirements
Applicants must be registered companies (often with Indian ownership or partnership).
Background checks on promoters, directors, and key personnel to ensure no criminal convictions or involvement in illegal gambling.
Demonstration of financial stability and ability to meet capital requirements.
Compliance with anti-money laundering (AML) and know-your-customer (KYC) protocols.
For online licenses, technical infrastructure must support secure transactions, responsible gaming, and data protection.
Physical location requirements for casinos (e.g., five-star hotel or offshore vessel in Goa/Daman).
For skill-based online games (Nagaland), proof that the game qualifies as a “game of skill” under state law is required.
Licensing Costs and Financial Requirements
License Type
Application Fee
Annual Fee
Other Financial Requirements
Goa/Daman Casino
Varies (typically INR 10–50 lakh)
INR 20–40 crore (approximate, varies by license type and capacity)
Continued compliance with all regulatory requirements
Payment of annual fees and any outstanding dues
Submission of audit reports and compliance documentation
Demonstration of responsible gaming practices and player protection measures
Failure to comply may result in suspension or revocation of the license.
Summary Table: Key Licensing Features by State
State
Land-Based Casino License
Online Gambling License
Skill Game License
Lottery License
Goa
Yes
No
No
No
Daman
Yes
No
No
No
Sikkim
Yes
Yes (restricted to within state)
No
No
Nagaland
No
No
Yes (online skill games only)
No
13 States
No
No
No
Yes (state lottery)
Gambling Tax
Overview of Gambling Operator Taxation in India
India’s taxation of gambling operators is characterized by a dual structure: a national Goods and Services Tax (GST) regime and state-level taxes, with the most significant recent change being the imposition of a uniform GST rate on all forms of gambling, including online gaming, casinos, and horse racing. Below is a detailed breakdown of the current taxation system, focusing exclusively on tax rates, basis of taxation, reporting, payment requirements, and any incentives or exemptions.
Tax Rates for Gambling Operators
Type of Gambling Operation
Tax Rate
Basis of Taxation
Online Gaming (including skill and chance games)
28%
On full face value of bets (entry amount or deposit), not Gross Gaming Revenue (GGR)
Casinos (land-based and online where permitted)
28%
On full face value of chips purchased or entry amount
Horse Racing (betting and totalisator)
28%
On the full value of bets placed
Lotteries
28%
On the face value of the ticket
The 28% GST rate is uniform and applies regardless of whether the game is of skill or chance.
This tax is collected on the total amount staked or deposited, not just the operator’s margin or commission.
Basis for Taxation
Tax is imposed on the full face value of each bet, deposit, or ticket, not on the net revenue or GGR (Gross Gaming Revenue).
For online gaming, the GST is levied at the time of deposit or when a bet is placed, not on winnings or operator commission.
For casinos, GST is charged on the purchase of chips or tokens, not on the net winnings.
Tax Reporting and Payment Requirements
Gambling operators must register for GST with the Central Board of Indirect Taxes and Customs (CBIC).
GST returns must be filed monthly, detailing all taxable supplies, amounts collected, and GST paid.
Operators are required to remit GST collected to the government by the 20th of the following month.
Detailed records of all transactions, deposits, bets, and payouts must be maintained for audit and compliance purposes.
Failure to comply with GST payment or reporting requirements can result in penalties, interest, and possible criminal prosecution.
Tax Incentives, Exemptions, and Special Provisions
There are currently no general tax incentives or exemptions for gambling operators under the GST regime.
State-specific incentives or lower tax rates may apply to government-run lotteries or in certain states with special economic policies, but these are exceptions rather than the rule.
Foreign Direct Investment (FDI) is prohibited in gambling and betting businesses, and no special tax holidays or deductions are available for private operators.
Some states may impose additional local taxes or license fees on gambling operations, but these are separate from the GST and vary by jurisdiction.
Prohibited Individuals
Age Restrictions and Identification Requirements
The minimum legal age for participating in gambling activities in India is generally 18 years, though some states may set this at 21 for certain gambling formats.
For real money gaming (RMG), minors are strictly prohibited from participation. Enforcement is increasingly rigorous, particularly in states with specific online gaming regulations.
Many regulated platforms, especially in states like Tamil Nadu, require Aadhaar-based Know Your Customer (KYC) verification to confirm the age and identity of players before allowing access to real money games.
Prohibited Types of Gambling Activities and Game Restrictions
The operation of gambling houses and most forms of games of chance are prohibited at the national level under the Public Gambling Act, unless specifically permitted by state law.
Online gambling with stakes or real money is expressly prohibited in several states, including Assam, Odisha, and Telangana. Other states, such as Tamil Nadu, have banned specific online games like poker and rummy, even if classified as skill-based elsewhere.
Online sports betting remains illegal across India, except for certain forms permitted in Sikkim and Goa.
Lotteries and horse race betting are allowed in some states, but heavily regulated.
Unlicensed online casinos and betting platforms, especially those operated offshore, are illegal and subject to enforcement actions, including website blocking and financial transaction restrictions.
Advertising and Marketing Limitations
Advertising of gambling and betting services is strictly regulated. National guidelines prohibit the promotion of illegal or unlicensed gambling platforms, both online and offline.
There is a ban on celebrity endorsements and influencer marketing for illegal betting and gambling sites. Enforcement is increasing, with industry bodies and the Advertising Standards Council of India (ASCI) monitoring and reporting violations.
Digital advertising, including on social media, adult sites, and streaming platforms, is a major channel for illegal gambling promotions; authorities are working to block such ads and penalize violators.
ASCI guidelines require that all real money gaming advertisements carry clear disclaimers about the risks of financial loss and addiction, and must not target minors or vulnerable groups.
In some states, all forms of advertising for real money gaming are prohibited, regardless of the platform’s licensing status.
Responsible Gambling Requirements and Player Protection Measures
Operators in regulated states must implement robust player protection measures, including mandatory KYC checks, age verification, and responsible gambling tools.
Spending limits are enforced on regulated platforms, with some states mandating daily or monthly caps on player deposits and wagers.
Pop-up messages warning about excessive play and spending must be displayed at regular intervals (e.g., every 30 minutes) to alert players about their gaming habits.
Mandatory display of addiction warnings and information about responsible gambling helplines is required on all real money gaming platforms and advertisements.
Some jurisdictions, such as Tamil Nadu, enforce “blank hours,” during which access to real money gaming platforms is prohibited (e.g., between midnight and 5 AM).
Operators are required to provide options for self-exclusion and to facilitate player-initiated account closures or cooling-off periods.
Geographic and Location Restrictions
Physical casinos are permitted only in select states such as Goa, Sikkim, and Daman, and are generally limited to designated zones (e.g., offshore vessels, licensed hotels).
Online gambling with stakes is permitted only in states that have enacted specific legislation allowing such activities (notably Sikkim and Nagaland for certain games).
Players located in states where online gambling or specific games are prohibited cannot legally access those services, and operators must implement geo-blocking and IP restrictions to prevent access from restricted jurisdictions.
Lotteries are state-regulated, with only 13 states currently running government-operated lotteries; inter-state lottery ticket sales are often restricted.
Gambling Regulatory Consultation
Get expert advice on gambling regulations and operational requirements
Timeline
Year/Date
Event
1867
Enactment of the Public Gambling Act, prohibiting the operation and visiting of public gambling houses across British India.
1950
Constitution of India assigns gambling regulation to individual states, allowing each state to legislate on betting and gambling activities.
1976
Goa, Daman, and Diu Public Gambling Act legalizes casinos in Goa (later extended to Daman and Diu), permitting casinos in five-star hotels and offshore vessels.
1998
Lotteries (Regulation) Act passed, providing a framework for the regulation and conduct of lotteries by state governments.
2000
Information Technology Act enacted, regulating cyber activities but not directly addressing online gambling, leaving its legality to state interpretation and courts.
2008
Sikkim enacts the Sikkim Online Gaming (Regulation) Act, becoming the first state to regulate online gaming and betting within its territory.
2015
Nagaland passes the Nagaland Prohibition of Gambling and Promotion and Regulation of Online Games of Skill Act, regulating skill-based online games like poker and rummy.
2021
Meghalaya Regulation of Gaming Act legalizes and licenses online and land-based gambling within the state.
2022
Tamil Nadu enacts the Prohibition of Online Gambling and Regulation of Online Games Act, introducing a ban on online gambling (later challenged in court).
2023
High Court of Madras strikes down the ban on online rummy and poker in Tamil Nadu as unconstitutional, affirming the legal status of skill-based games.
2024
Ongoing central government discussions and proposals for a new national gaming bill to address online gambling regulation across India.
Requirements
Software Certification and Technical Standards
There is no unified national standard for software certification in India; technical requirements for gambling platforms are primarily determined at the state level. For example, Sikkim and Nagaland require certified Random Number Generator (RNG) systems and regular third-party audits for online games of chance and skill, respectively.
Operators must implement robust technical controls to ensure game fairness, prevent manipulation, and maintain the integrity of betting and gaming outcomes. This typically involves using certified RNGs and secure server infrastructure.
States with regulated online gambling may require operators to submit their gaming software for approval to designated authorities or independent testing labs, ensuring compliance with prescribed technical standards.
Platforms must provide secure, encrypted connections (such as SSL/TLS) to protect user data and financial transactions.
Data Protection, Privacy, and Server Location Requirements
Operators must comply with the Information Technology Act, 2000 and associated rules, which mandate the protection of personal and sensitive user data, including encryption, secure storage, and restricted access protocols.
Some state regulations, such as those in Sikkim, require that all player data and transactional records be stored on servers located within India to facilitate regulatory oversight and ensure data sovereignty.
Privacy policies must be clearly communicated to users, outlining the collection, use, and sharing of personal information.
Operators are required to implement technical safeguards against unauthorized access, data breaches, and cyber threats, including regular security assessments and incident response protocols.
Anti-Money Laundering (AML) and Know Your Customer (KYC) Procedures
Compliance with the Prevention of Money Laundering Act (PMLA) is mandatory for licensed operators, requiring the implementation of comprehensive AML programs.
Operators must conduct thorough KYC checks, typically involving Aadhaar-based identity verification, to confirm the identity and age of all players before allowing participation in real-money gaming.
Suspicious transaction monitoring systems must be in place to detect and report unusual or potentially illicit activities to the relevant authorities.
Operators are required to maintain detailed records of customer identification, transactions, and communications for a minimum period (often five years) to support regulatory investigations and audits.
Financial Reporting, Auditing Standards, and Record-Keeping
Operators must maintain accurate, up-to-date financial records, including detailed logs of all player deposits, withdrawals, and wager histories.
Regular independent audits of financial statements and gaming operations are required to ensure transparency and regulatory compliance.
Operators are obligated to submit periodic financial and operational reports to local regulatory authorities, as stipulated by state-specific regulations.
All records, including user activity logs, financial transactions, and AML/KYC documentation, must be securely stored and made available for inspection upon request by regulators.
Technical Implementation of Responsible Gambling Tools
Operators must integrate responsible gambling features into their platforms, such as self-exclusion options, deposit and spending limits, and session time reminders.
In some states, regulations require platforms to display pop-up messages at regular intervals (e.g., every 30 minutes) warning players about excessive play and providing information on responsible gaming resources.
Mandatory “blank hours” or enforced downtime (e.g., restricting access between midnight and 5 AM) may be required to prevent continuous play and promote player well-being.
Systems should be in place to identify and intervene with users exhibiting signs of problematic gambling behavior, including automated monitoring and referral to support services.
Gambling regulations are subject to change. The information provided on this page was accurate at the time of publication, but may not reflect the current regulatory landscape. Always consult official sources for the most up-to-date information before making any gambling-related decisions.
