Since October 2023, a 28% GST has been applied to online gaming, while winnings from games are taxed at 30% from the financial year 2024–25. Even offshore gaming platforms have been brought under the tax net, and agencies have the power to block unregistered or illegal sites. Apart from the aforementioned factual arguments made by Dream 11, it also relied heavily upon the landmark judgment of the Supreme Court in K.R. Lakshmanan v State of Tamil Nadu 20in which the SC had held that betting on horse races was a game of skill. The PH Court studiedly analyzed the Lakshmanan Case, in which it had been held that the inherent capacity of the animal, capability of the jockey, the form and fitness of the horse, distance of the race etc., were all objective factors capable of assessment by race- goers.

Legislative framework and classification of online games

The drafted regulations are geared towards resolving the growing complaints of problematic gambling behaviors among minors. The Central Consumer Protection Authority urges all stakeholders to adhere strictly to these guidelines and refrain from promoting or endorsing activities that are illegal under Indian law. The advisory highlights that, the Guidelines for Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements, 2022, categorically prohibit advertisements of products or services prohibited under any prevailing law. The SC also held that the rights under Article 19(1)(a) – (g) of the Constitution were not absolute, and could be curtailed in the interest of the general public as per Articles 19(2) – 19(6).

The decision was appealed before the Supreme Court, but was summarily dismissed. As the sector has been embroiled in a series of uncertainties because of the regulatory crackdown by the taxation authorities and directorate of enforcement, these regulatory clarities would definitely provide some certainty to the sector. However, there still remains a need for comprehensive regulation pertaining to the operations and governance aspects of the sector, especially in the context of the determinability of the nature of games being offered by the gaming platforms. Before delving further into this topic, it is essential to understand the broad classification of these games, which eventually leads to the determination of their legality.

Beyond the Ban: Rethinking Online Gaming Regulation in India

In 2020, Telangana and Andhra Pradesh imposed a ban on any online gambling and real money gaming activities. Meanwhile, Nagaland has a licensing authority for online games categorized under mere skill. Since this is a law passed before the internet ever existed, it has no mention of online gambling. With this alone, online casino and betting activities are then considered neither legal nor illegal. Through this advisory, CCPA cautions that any advertisement or endorsement of activities which are otherwise prohibited by law, including but not limited to betting or gambling, shall be subject to rigorous scrutiny. If any violation of the guidelines is found, stringent measures, as per the Consumer Protection Act, 2019, will be initiated against involved, including manufacturers, advertisers, publishers, intermediaries, social media platforms, endorsers, and any other relevant stakeholders.

E-sports are competitive video games played in tournaments, similar to traditional sports. The government wants to promote e-sports as a skill-based activity that can create careers. The Act represents a bold attempt to tackle legitimate concerns around this site addiction, fraud and illicit financial flows. However, India’s online gaming sector is a complex landscape rich with economic potential, legal nuance and technological innovation. While the Act aims to protect users, its blanket ban risks undermining a thriving industry that generates substantial public revenue.

• Dream11 also ended its $43 million sponsorship deal with the Board of Control for Cricket in India (BCCI), meaning its logo no longer appears on the Indian cricket team’s jerseys.
• The PH Court has given fantasy sports 17 the sanction of a preponderantly skill– based game in a recent ruling.
•  Poker begins with the distribution of three preflop cards and the game proceeds when the cards are turned or opened.
• To win, you have to guess if the total on a pair of dice is equal to 7, above 7 or below 7.

The government can increase the effectiveness of gambling by enforcing appropriate regulations that properly control it. An individual complaint against gambling fraud must be treated the same as any other type of fraud. Private agencies should publish statistics on gambling activity to raise public awareness of scams. Persons should only gamble after gathering sufficient information on the casinos in which they intend to invest. None of the other states in India has made a specific law banning prize schemes on products similar to the Prize Schemes Act of Tamil Nadu. The “Prize Competition Act, 1955” is the primary statute that governs these competitions.

Online gambling in India refers to the act of participating in gambling activities through various online platforms or websites. Simply, it refers to the use of the internet for placing bets and earning money via a virtual environment. There are various websites or applications that allow people to gamble online whereas Teen Patti and Rummy Draw are the card games that are popular among Indians. It has been observed that if any online activity requires skill then it will be considered gaming whereas any activity that relies on chance is considered gambling. In the Public Gambling Act, 1867, no provisions were provided regarding online-based gambling whereas there is another Act, Information Technology Act, 2000, that identifies web-based wagering and gaming but it does not mention online gambling. As mentioned above, gambling is a State subject; therefore, states make their own laws for the same.

In recent years, fantasy sports has emerged as a unique format unlike any other online gaming format present in India and has shown great promise and popularity among young working professionals. In response, the Indian Parliament enacted the Promotion and Regulation of Online Gaming Act, 2025 (the Act)1 which introduces a blanket ban on online money games and establishes a centralised regulatory authority. While the Act aims to protect vulnerable users and curb illicit activities, it raises serious constitutional and policy questions.

The Sikkim government grants licenses to applicants for the operation of online games and sports games for a time frame of five years. However, individuals from other states are unable to access such games via websites. Such authorized online games and sports games are only permitted within the Sikki gaming parlor’s physical grounds.

Moreover, in response to State-level bans such as those enacted in Tamil Nadu and Karnataka, courts have consistently held that blanket prohibitions on games of skill are unconstitutional. Instead, States are required to adopt regulatory frameworks that address potential harms without infringing on lawful skill-based gaming. There are various risks of online gambling such as financial and social problems, loss of personal information, money laundering, high vulnerability to cyber-attacks, and increased social detachment. These risks result in the theft of personal and financial information of the players or users which further causes the loss of one’s hard-earned money. Only skill-based internet gambling games are permitted in Nagaland; other games of chance are forbidden.