India’s Online Gaming Act Is in Force: Real-Money Games Banned
India’s Promotion and Regulation of Online Gaming Act, 2025 and the Online Gaming Rules, 2026 have applied since 1 May 2026. Together they ban online money games outright, make advertising them a criminal offence and reach operators outside India. Here is what the framework says and what it means for players.
Three Categories, One Ban
The Act sorts digital games into three groups: online money games, esports and online social games. An online money game is any game where users pay or stake money or other value expecting a monetary or other return, irrespective of skill, chance or both. That wording removes the old skill-versus-chance defence that fantasy sports and rummy platforms relied on for years.
Esports remain legal if they are recognised under the National Sports Governance Act, 2025, registered under the 2026 Rules and involve no betting or wagering. Social games are allowed when there is no monetary stake, and may earn from subscriptions, advertising and in-game purchases.
The Penalties
| Offence | Prison (first offence) | Fine (first offence) |
|---|---|---|
| Offering or providing access to online money games | Up to 3 years | Up to ₹1 crore |
| Advertising online money games | Up to 2 years | Up to ₹50 lakh |
| Facilitating payments for online money games | Up to 3 years | Up to ₹1 crore |
Repeat offences carry higher minimum terms. Banks and payment providers must ensure transactions are not routed to prohibited games, and the Act expands the government’s blocking powers under Section 69A of the IT Act so that non-compliant sites and apps can be taken down.
Offshore Platforms Are Covered
The Act applies to foreign companies offering online games within India, whether or not they have a local presence. For players, the practical effect is that offshore platforms serving Indian users are now explicitly unlawful, payment routes to them are a target for enforcement, and their sites can be blocked at any time. Funds held on a blocked platform are not protected by any Indian mechanism.
Who Regulates It
The Rules set up the Online Gaming Authority of India, a digital-first regulator under the Ministry of Electronics and Information Technology. It decides which games fall into which category, handles esports and social game registrations, and hears user complaints. A constitutional challenge to the Act is pending before the Supreme Court, but the law remains in force while it is heard. Separately, the Supreme Court upheld 28% GST on the full value of deposits on real-money gaming platforms in May 2026.
📌 Our position: Cocktailspins does not list or recommend real-money gaming or casino operators for players in India. Our India guide now explains the law, the tax position and what remains legal.
What Is Still Legal
Land-based casinos continue in Goa and Sikkim under state law. Registered esports without wagering and free-to-play social games are permitted. Owning and trading crypto is not banned, though gains are taxed at a flat 30% with 1% TDS on transfers.
FAQ
When did India's Online Gaming Act take effect?
The Promotion and Regulation of Online Gaming Act, 2025 and the Online Gaming Rules, 2026 have applied since 1 May 2026.
Is online casino or betting legal in India now?
No. The Act bans online money games, defined as games played for money or other stakes irrespective of skill, chance or both. Offering, advertising and facilitating payments for them are criminal offences.
Does the ban cover offshore and crypto casinos?
Yes. The Act applies to foreign companies offering online games within India, and the government can block non-compliant sites under Section 69A of the IT Act.
What online games are still allowed in India?
Registered esports with no betting or wagering, and online social games with no monetary stake. Land-based casinos in Goa and Sikkim continue under state law.
Sources
↗ iGB — Does the PROG Act & Rules 2026 deliver a clear reset for online gaming in India? ↗ Mondaq — Summary: Promotion and Regulation of Online Gaming Act, 2025 ↗ exchange4media — Online Gaming Act to kick in on May 118+ only. Gambling laws differ by country and change quickly — check the rules where you live. If gambling stops being fun, BeGambleAware and GamCare offer free, confidential support.