Online Gambling in India: Laws, Platforms, and Payment Methods

Legal Landscape of Online Gambling in India

India’s legal framework for gambling is complex due to its federal structure. Gambling is governed at the state level, meaning each Indian state has the authority to create its own rules. The primary central law, the Public Gambling Act of 1867, prohibits running or being in charge of a public gambling house. However, this law predates the internet and does not explicitly address online gambling.

Currently, states like Sikkim and Nagaland have legalized and regulate certain forms of online gambling. Goa permits casinos in physical form but not specifically online gambling. Meanwhile, most other Indian states operate in a legal grey area where online gambling is neither explicitly legal nor outright banned.

The Information Technology Act of 2000 governs internet activity in India but does not clearly cover gambling-related content, leaving enforcement largely up to the interpretation of local authorities.

Popular Online Gambling Platforms for Indian Users

Despite regulatory ambiguities, Indian users participate widely in online gambling through international platforms. These platforms are typically registered in jurisdictions such as Malta, Curacao, or Gibraltar, and they cater specifically to Indian players with localized interfaces, support for INR, and games popular in the region such as Andar Bahar and Teen Patti.

Some of the most frequented international gambling platforms by Indian players include:

Betway
10Cric
Parimatch
22Bet
LeoVegas

These platforms offer a mix of sports betting, casino games, and live dealer options. Many even feature cricket betting markets, which are particularly popular in India.

Payment Methods for Indian Online Gamblers

Most international gambling platforms catering to India support payment options that align with the local financial ecosystem. Commonly used methods include:

UPI (Unified Payments Interface) – Fast, real-time transfers linked to Indian bank accounts
NetBanking – Direct transfers via Indian banking systems
Credit/Debit Cards – Visa and MasterCard are widely accepted
Cryptocurrency – Bitcoin, Ethereum, and other tokens are increasingly popular due to discretion and speed
E-wallets – Skrill, Neteller, and Jeton are popular for their ease of use and international acceptance

Platforms usually offer deposits and withdrawals in Indian Rupees (INR), reducing currency conversion issues for players.

Taxation on Online Gambling Winnings in India

Winnings from online gambling are taxable under Indian law. According to the Income Tax Act, any winnings from gambling, betting, or lotteries are subject to a flat 30% tax rate (plus cess and surcharge), regardless of the amount. These winnings do not enjoy the benefit of tax slabs or deductions. If the platform is based outside India, the individual is responsible for self-declaration and payment of taxes.

As of 2023, India also introduced a 28% Goods and Services Tax (GST) on the full value of bets placed in online gaming, which could significantly affect the industry. However, compliance and enforcement vary across platforms and are still evolving.

Risks and Considerations

While many international platforms are secure and licensed, players must exercise caution. Risks include:

Lack of legal recourse if disputes arise with offshore operators
Addiction and financial loss due to unregulated play
Fraudulent or scam sites posing as legitimate casinos
Complicated tax compliance when dealing with foreign entities

It is advisable to choose platforms that are properly licensed, offer responsible gambling features, and have clear terms of service.

Future of Online Gambling in India

India’s online gambling market is growing rapidly, driven by increased internet penetration, smartphone usage, and a young demographic. The government is under pressure to regulate and tax this sector more effectively.

There have been discussions about a centralized regulatory framework for online gaming, which could bring clarity and reduce the legal grey area. The future likely involves a hybrid model where states regulate the market under federal guidelines.

For now, Indian users continue to access international platforms, and the demand shows no signs of slowing down. With regulatory updates on the horizon, both players and operators should stay informed and compliant to ensure a safe and enjoyable gambling experience.