Gambling refers to the act of placing money on the outcome of an event with the expectation of earning a profit. It is associated with sports and games, where users predict outcomes and stake money accordingly.
From a practical standpoint, placing a wager is straightforward but risky. For example, if a user places ₹1,000 on a cricket match at odds of 1.90, a correct prediction results in ₹1,900, while a wrong prediction leads to a total loss. This risk-reward structure is what makes betting both attractive and potentially harmful if not approached responsibly.
Legally, the Indian law regulates based on whether the activity is classified as a game of skill or a game of chance. This distinction plays a central role in determining legality.
Indian courts have repeatedly emphasized the importance of distinguishing between skill and chance. In the landmark case of K.R. Lakshmanan vs State of Tamil Nadu, the Supreme Court held that games where skill predominates over chance are legally permissible.
This principle has shaped the legal treatment of multiple activities. For instance, horse racing has been recognized as a skill-based activity because it involves data analysis, historical performance, and informed decision-making. Similarly, games like chess rely entirely on strategy and expertise.
However, sports betting does not fall neatly into this category. Even though users may rely on statistics and analysis, the outcome of a sporting event remains uncertain and influenced by multiple unpredictable factors. This uncertainty is why sports betting is often treated differently under Indian law.
The foundation of gambling regulation in India lies in the Public Gambling Act of 1867, a colonial-era law that primarily prohibits running or visiting physical gambling houses.
However, this law was enacted long before the internet existed and does not address online betting or digital gaming platforms. As a result, it has limited applicability in today’s online ecosystem.
Since gambling is a state subject under the Constitution, different states have developed their own laws. States like Sikkim and Nagaland have introduced licensing frameworks for online gaming, while others such as Maharashtra maintain stricter prohibitions.
This fragmented legal structure has historically created a grey area, especially for online betting platforms operating offshore. Many users access such platforms, often without realizing the associated legal and financial risks, including lack of dispute resolution and exposure to fraud.
A major turning point in India’s regulatory landscape is the Promotion and Regulation of Online Gaming Act, 2025, which introduces a centralized framework for governing online gaming activities.
Unlike earlier laws, this Act clearly classifies online gaming into three categories: e-sports, online social games, and online money games. E-sports are formally recognized as competitive skill-based activities, while social games are permitted as long as they do not involve monetary stakes.
The most critical category is online money gaming, which includes any game where users deposit money with the expectation of winning monetary rewards. This definition applies regardless of whether the game involves skill or chance.
This classification is crucial because it directly impacts how sports betting is treated under the law.
The Act establishes a central authority responsible for regulating the online gaming sector. This authority has the power to classify games, enforce compliance, and take action against illegal platforms.
One of the most important developments is the government’s ability to block offshore gaming websites and enforce restrictions on foreign operators targeting Indian users. This closes a major loophole that existed under earlier laws.
Penalties are also significant. Operators can face imprisonment of up to three years along with fines of up to ₹1 crore, while promotional activities can also lead to legal consequences.
Gambling can have serious financial consequences if not managed properly. Many players are unaware that even occasional winnings may be subject to taxation under Indian law. To better understand your obligations, you can read our complete guide on Indian Gambler’s Tax Guide (2026).
The introduction of the 2025 Act significantly changes the legal position of sports betting. Previously, betting operated in a grey area due to outdated laws and inconsistent state-level regulations.
Now, since most forms of sports betting involve monetary stakes, they fall under the definition of online money gaming and are therefore prohibited. This creates a more uniform national stance, even though enforcement may still evolve over time.
At the same time, the law promotes skill-based sectors such as e-sports, showing that India is not banning gaming altogether but rather regulating high-risk financial activities.
Indian courts have played a key role in shaping the legal understanding of gaming. Cases such as K.R. Lakshmanan vs State of Tamil Nadu and multiple rulings on fantasy sports platforms have consistently upheld the legality of skill-based gaming.
However, it is important to understand that these rulings were based on the skill vs chance principle. The 2025 Act introduces an additional layer by focusing on monetary involvement, meaning even skill-based games could face restrictions if they involve betting or wagering.
From a user perspective, the legal environment has become stricter and more clearly defined. Betting should not be considered a reliable source of income and must be approached with caution.
Users should be aware that participating in prohibited online money gaming activities may involve legal risks. The 2025 Act also emphasizes consumer protection, aiming to reduce financial harm and prevent exploitation, especially among younger users.
Now the big question arises: is it legal for Indians to play in online casinos? The answer isn’t as straightforward as it may seem, there’s an important catch. Under the 2025 law, any activity where you deposit money to win money is classified as “online money gaming,” and these activities are restricted in India. This means that playing casino games with real money falls into a regulated category.
A good real-world comparison is crypto. While cryptocurrencies are not recognized as legal tender in India, many users still actively trade through international platforms. In a similar way, some offshore casino platforms are accessible to Indian users. Well-established and reputed platforms typically focus on providing smooth payment processing, secure systems, and a consistent user experience, which is why they remain popular among players.
In simple terms, if real money is involved, online casino gaming falls under restricted activities as per PROGA Act 2025, even though certain platforms may still be accessible to users.
Staying compliant involves both financial discipline and responsible behavior. Combining insights from our Responsible Gambling Guide and ITR filing guide can help you avoid legal and financial issues.
Kaniskh Agarwal is a reputed lawyer based in New Delhi where he has been enrolled with the Delhi Bar Council since 2012 and is a member of the Delhi High Court Bar Association. His area of focus is criminal defence and corporate law with over 14 years of experience.
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Disclaimer: CricketBatPro is an entertainment platform. Under the Promotion and Regulation of Online Gaming Act, 2025, the offering, promotion, or advertisement of such services is strictly prohibited. The law does not explicitly criminalise individual participation, but players should be aware this remains a grey area.
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