How Online Gambling is Working in India in the Face of Legal Challenges

 In recent years, online gambling in India has evolved from a shadowy niche into a massive digital industry. From cricket betting to rummy and poker apps, the Indian internet is flooded with platforms offering real-money games. But here’s the twist — the legal framework governing this explosive growth remains ambiguous, fragmented, and region-specific.

So how is this industry functioning? Who is regulating it? Is it legal or illegal? Let's dive deep into the grey zone that is India’s online gambling scene.

🔍 The Legal Status: A Patchwork of State Laws

India doesn’t have a central law that directly governs online gambling. Instead, laws differ from one state to another, largely based on interpretations of the Public Gambling Act of 1867 — a colonial-era law that never foresaw the internet age.

Here’s how it breaks down:

  • Games of Skill vs Games of Chance
    Indian law traditionally distinguishes between these two categories:

    • Games of Skill (like rummy, poker, chess, and fantasy sports): Generally permitted.

    • Games of Chance (like roulette, slots, and most casino games): Usually banned.

    However, each state decides what falls under which category. For instance:

    • Tamil Nadu and Telangana have banned online rummy.

    • Karnataka tried to ban online gaming but the High Court struck it down in 2022.

    • Sikkim and Nagaland have frameworks to regulate and license certain types of online games.

💼 The Business Behind It: How These Companies Operate

Despite the unclear legal environment, online gambling and gaming firms are flourishing. Here’s how they do it:

1. Legal Loopholes and Jurisdictional Gaps

Most of these companies:

  • Are registered outside India (e.g., in Malta, Gibraltar, or Curaçao).

  • Operate through websites or apps that accept Indian users.

  • Use payment intermediaries like UPI, NetBanking, or crypto to process transactions.

They argue that they’re offering skill-based games, not gambling. This legal defense helps them avoid direct conflict with state laws.

2. Celebrity Endorsements and Marketing

The industry has roped in Bollywood actors, cricketers, and influencers to promote these platforms. Ads for apps like Dream11, Betway, and FairPlay are common during major sports tournaments — giving a semi-legitimate appearance to services that often tread a legal tightrope.

3. Fantasy Sports and Real-Money Gaming

Fantasy sports apps like Dream11, MPL, and My11Circle label themselves as skill-based platforms — a claim supported by some court rulings. But users often don’t distinguish these from betting apps, creating a blurred perception between gaming and gambling.

⚖️ Recent Government Moves: Toward Regulation?

In 2023, the Indian government introduced some major policy shifts:

✅ IT Rules (Amendment), 2023:

  • The Ministry of Electronics and Information Technology (MeitY) introduced rules to govern online gaming platforms.

  • Platforms must register with self-regulatory bodies (SRBs).

  • Games involving real money must be verified as non-addictive and skill-based.

🚫 State Bans:

  • States like Tamil Nadu, Telangana, and Andhra Pradesh continue to push back against online real-money gaming, citing concerns around addiction, suicide, and financial loss.

📈 Growth Despite Uncertainty

  • India had over 400 million online gamers in 2024, with projections suggesting it may surpass 500 million by 2025.

  • The Indian online gaming industry was valued at ₹16,000 crore+ in 2023.

  • Real-money gaming contributed over 70% of this revenue, despite legal ambiguities.

Clearly, the industry isn’t just surviving — it’s thriving.

🚨 The Dark Side: Addiction, Scams, and Financial Loss

While tech companies and investors are betting big, the impact on users is often overlooked:

  • Addiction and mental health issues are rising, particularly among youth.

  • Many platforms are unregulated, leading to fraudulent schemes.

  • Families have reported financial ruin and suicides linked to online losses.

Without centralized regulation or public awareness, users remain vulnerable.

🧭 What Lies Ahead?

India is at a regulatory crossroads. Three paths lie ahead:

  1. Total Ban (like in some states): Hard to enforce due to VPNs and foreign platforms.

  2. Licensing and Regulation: A uniform national law that legalizes and regulates online gaming responsibly.

  3. Status Quo: Continued confusion, lawsuits, and loopholes.

The choice will shape the future of digital entertainment, finance, and consumer safety in India.

✅ Final Thoughts

Online gambling in India is neither fully legal nor outright illegal — it lives in a legal limbo, powered by user demand, digital infrastructure, and fragmented laws.

As a player or observer, it’s important to remember:

Just because it’s accessible doesn’t mean it’s safe or legal.

India needs a forward-thinking framework that balances innovation with protection — before the stakes get too high.

Written by VrlNewsBox | July 2025
For permission to republish or collaborate, contact vrlnewsbox@gmail.com

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