The Promotion and Regulation of Online Gaming Act is the most significant change to Indian gambling law in a century, and it did something the old framework never managed: it addressed online play directly rather than leaving it to be argued from a statute written in 1867.
What the Act separates
| Category | Treatment under the Act | Examples |
|---|---|---|
| E-sports | Recognised and promoted, with a framework for registration | Competitive video gaming |
| Online social games | Permitted, provided no stake is placed in expectation of monetary return | Casual games, free-to-play formats |
| Online money games | Prohibited: offering, facilitating, advertising and payment processing | Real money casino, betting, and money-staked games of skill or chance |
The critical drafting choice is that the prohibition on money games does not turn on the old skill-versus-chance distinction. A game staked for monetary return falls within the category regardless of how much skill it involves, which is why the fantasy and skill-gaming industry was affected as heavily as the casino sector.
What is prohibited
- Offering, or aiding the offering of, an online money game.
- Advertising or promoting an online money game in any medium.
- Facilitating payments, by banks and other financial institutions, to online money gaming services.
As passed, the Act provides for imprisonment and substantial fines for offering such services, with lower penalties for advertising offences, and repeat-offence provisions. It also contemplates a regulatory authority for the sector.
What changed in practice from 1 May 2026
- Domestic real money gaming operators withdrew from the Indian market or restructured.
- Advertising disappeared from mainstream Indian media, sponsorships included.
- Payment facilitation tightened sharply, which is why direct bank routes to gambling merchants fail more often now than they did two years ago.
- Access blocking of offshore operator domains became more frequent.
- Offshore operators continued to serve Indian players from outside the jurisdiction.
What has not changed
State licensing of physical casinos in Goa, Daman and Sikkim continues under state law. Lottery remains a separate regime, run by states that permit it. Horse racing has its own long line of authority. And the tax treatment of winnings under sections 115BBJ and 194BA operates independently of whether the underlying activity is permitted, which surprises people every filing season. See the tax page.
Related reading
State-by-state gambling laws · What offshore licences actually cover · Legal status overview
Frequently asked questions
What does the Online Gaming Act prohibit?
Offering, facilitating, advertising and processing payments for online money games: games played with a stake in expectation of monetary return, whether skill-based or not.
Does the Act ban games of skill?
It bans online money games regardless of skill content. That is the key drafting choice: the old skill versus chance distinction does not exempt a game that is staked for monetary return.
When did the Act come into force?
It came into force on 1 May 2026, after being passed in 2025.