India has a long history with gambling, but when it comes to the law, things can be a bit confusing. While some types of gambling are allowed, others are banned. Rules can also change from one state to another.
In this guide, we’ll explain the legal status of gambling in India. We’ll also look at the key laws, which games are allowed, what’s banned, who regulates gambling, and how online gambling fits into all of this.
Is Gambling Legal in India? – Quick Answer
Gambling in India is neither fully legal nor completely illegal; it depends on the type of game, your location, and the mode of play. While some forms of gambling are allowed, especially those involving skill, many others are restricted or banned, particularly games of chance.
The laws also vary from state to state, making it important to understand the specific rules where you live.
- Gambling is partly legal in India.
- The central government sets some rules, but each state can make its own laws.
- Games of skill (like rummy or fantasy sports) are usually legal.
- Games of chance (like roulette or dice games) are mostly banned unless the state allows them.
Who Regulates Gambling in India?
Gambling in India isn’t controlled by just one authority, it’s managed at different levels. From issuing licenses to collecting taxes, several bodies play a role in how gambling is governed.
State Governments
Each state has the power to make its own gambling laws, which means the rules can vary widely across the country.
States like Goa, Sikkim, and Daman have legalized casinos, while others have strict bans. They are also responsible for issuing licenses for activities like lotteries and offline or online gaming.
GST Council and Directorate General of GST Intelligence (DGGI)
These bodies manage the tax part of gambling, especially for online platforms. In 2025, they decided:
- If an online game involves real money and is similar to gambling, it will be taxed at 28% GST.
Source: The Economic Times
Which Laws Control Gambling in India?
Gambling in India is governed by a mix of central and state laws. The main law at the national level is the Public Gambling Act of 1867, but since gambling is a state subject, each state has the power to make its own rules.
This leads to different legal positions across the country, with some states allowing certain gambling activities while others have strict bans.
1. The Public Gambling Act, 1867
This is a very old law that applies in most states. It says:
- Running a public gambling house is illegal.
- Visiting a gambling house is also illegal.
- But this law does not apply to games of skill.
Reference: Documents
2. State-Specific Gambling Laws
Since gambling is a state subject, many states have their own rules.
- Goa, Sikkim, and Daman allow casinos.
- Nagaland and Sikkim have legal online games of skill.
- Telangana and Andhra Pradesh have banned all forms of online gambling.
3. Information Technology Act, 2000
This law talks about online activities but does not clearly mention online gambling. This causes confusion and makes the legal situation unclear.
Source: IT Act, 2000
What Are Games of Skill vs. Games of Chance?
Games of skill are where success depends more on a player’s ability, and are usually permitted, while games of chance are based primarily on luck, and are often banned.
Indian law treats games of skill and chance differently, directly affecting their legality.
Understanding this difference is key to knowing what types of gambling are allowed.
- Games of Skill:
These are games where the outcome is mainly based on the player’s knowledge, strategy, or practice. Since skill plays a bigger role than luck, these games are usually considered legal in most Indian states.
Examples: Rummy, chess, and fantasy sports like Dream11.
- Games of Chance:
These are games where the result depends mostly on luck or random outcomes, not the player’s skill. Because of their unpredictable nature, they are generally banned under Indian gambling laws.
Examples: Slot machines, roulette, and dice games like craps.
The Supreme Court of India has confirmed that rummy is a game of skill, so it is not considered illegal gambling.
Is Online Gambling Legal in India?
Online gambling in India is a legal grey area largely governed by state-specific laws. While some states, like Sikkim and Nagaland, allow licensed online games of skill, others, such as Telangana and Tamil Nadu, have banned them entirely.
There is no clear national law on the matter, which adds to the confusion.
At the national level, there is no specific law for online gambling, so the rules can be confusing.
Recent Updates on Gambling Laws in India
In 2025, India saw stricter rules, higher taxes on online gambling, and increased crackdowns on illegal betting, especially during major events.
High Tax on Online Gambling
In 2025, the government said that online platforms offering gambling-like games will face 28% GST on the full amount players bet, not just on profits.
Source: The Economic Times
State Laws Getting Stricter
- Tamil Nadu introduced new rules to limit the time and money spent on online games.
- Karnataka is planning a new law to clearly define and regulate online games.
Crackdowns on Illegal Gambling
In May 2025, a man in Madhya Pradesh was arrested for running an illegal IPL betting racket online.
Source: The Times Of India
What is Illegal Gambling in India?
Not all gambling activities are allowed under Indian law. While some are regulated, others cross the legal line, especially involving games of chance, unlicensed platforms, or violations of tax rules.
Knowing what’s illegal can help you avoid serious trouble.
Here are the activities that are illegal by law in India:
- Running or visiting a gambling house (in most states).
- Gambling on games of chance (unless the state allows it).
- Online gambling is banned in states where it is.
- Not paying GST or other taxes on gambling activities.
- Involving minors or promoting underage gambling.
Cainos’ Facts:
Conclusion – Gambling Isn’t entirely illegal in India, But it Depends on State Laws
Gambling in India exists, and is not completely banned, but it’s far from fully legal. The legality largely depends on three main factors: the type of game (whether it’s based on skill or chance), your location (as each state has its own laws), and the mode of play (online or offline).
These variables make navigating gambling laws in India quite complex.
Because of this patchwork of rules, staying informed and cautious is crucial. Before participating in or organizing any gambling activity, make sure to understand the specific regulations in your state.
If you’re unsure, seeking legal advice can help you avoid unintentional violations and stay on the right side of the law.
