The Regulatory Landscape: A Comprehensive Analysis of Online Gaming Regulation in India
Germany’s Interstate Treaty on Gambling 2021 (Glücksspielstaatsvertrag or GlüStV) represents a fascinating example of federal coordination in gambling regulation after years of fragmented approaches. The treaty harmonizes gambling law aviator game across all 16 federal states, creating regulatory certainty while maintaining strict controls over gambling activity. The Joint Gambling Authority of the Federal States (GGL), based in Halle, serves as the central regulatory body issuing licenses valid for five years. India’s blanket prohibition approach stands in stark contrast to regulatory frameworks adopted by most major economies, which generally favor sophisticated regulation over prohibition. This international comparison reveals the outlier nature of India’s approach and provides context for understanding alternative regulatory models that have evolved across different cultural, economic, and legal contexts worldwide. The Court recognized the matter’s constitutional importance, particularly relating to Articles 14 (equality before law), 19(1)(g) (right to trade/profession), and 21 (right to life and personal liberty), issues core to the rights of gaming platforms and business operators.
Distinguishing Between Games of Skill and Games of Chance
- The contents of the corresponding cell apply except the points on Nagaland and Rajasthan, which apply to online fantasy sports platforms only.
- B) The Act introduces an expansive definition of “other stakes” to include anything “recognised as equivalent or convertible to money,” such as credits, coins, token or objects (real or virtual), purchased directly or indirectly in relation to an online game.
- Canada presents a complex federal-provincial regulatory structure where gambling authority resides primarily with provinces under Section 207(1)(a) of the Criminal Code.
There are still many unanswered problems regarding the Online Gaming Law in India’s grey area between skill-based and games of chance. Canada presents a complex federal-provincial regulatory structure where gambling authority resides primarily with provinces under Section 207(1)(a) of the Criminal Code. This creates diverse approaches across the country, with Ontario pioneering private operator licensing while other provinces maintain government monopolies or are exploring regulatory reforms.
How an ‘online money game’ will be decided
The states of Telangana and Andhra Pradesh prohibit all activities in relation to real-money online gaming including skill gaming, whereas the state of Tamil Nadu currently prohibits real-money online gambling. Thus, it can be observed that states in India previously made a distinction between games based on two different factors. Firstly, whether there were any money or stakes involved and secondly, whether the game was skill-based or chance based. However, the current bill has removed this distinction and made illegal all online-real money games, even if skill-based.
Foreign direct investment is permitted in games of skill as games of skill do not fall within the purview of gambling. Whether a business model involves a game of chance or skill is factual and should be analyzed prior to undertaking foreign direct investment. There may be more extensive laws governing gaming in India in the future that cover both online and offline gambling.
The government cited multiple instances where several groups of people, specifically the youth and the economically weaker sections, have been financially and psychologically harmed due to unexpected outcomes of events where monetary return was promised by the game operators. In fact, the uncontrolled expansion of the online gaming sector was also proven to be linked to various illegal activities such as evasion of tax, money laundering, and in certain scenarios even financing of terrorism. Thus, in the interests of public order and national security, it was important for the union government to intervene.
The Promotion and Regulation of Online Gaming Act, 2025 is a watershed moment in India’s legal treatment of online gaming. By moving beyond the binary of skill and chance, and by embedding consumer protection and AML safeguards, it seeks to legitimise an industry long trapped in uncertainty. Yet, its constitutional validity and practical enforceability will likely be tested in the courts. For now, stakeholders must carefully evaluate compliance frameworks and monitor judicial developments. The Act defines “online gaming” broadly to include any game offered on the internet where users deposit money or money’s worth in expectation of winnings. The definition includes fantasy sports, casual real-money games, and esports involving monetary stakes.
The future of gaming in India appears bright, with more equitable and balanced laws expected as the industry is poised for rapid growth. Regulations vary by state, with Goa and Sikkim allowing casinos, while states like Tamil Nadu and Andhra Pradesh impose stricter restrictions or bans on gambling. The govt argues the ban protects people from losses, even if revenue suffers.Globally, nations regulate with safeguards, India alone has chosen prohibition.The verdict will shape the future of gaming, jobs, and digital rights in India. Consumer protection measures in the UK are among the world’s most stringent and continue evolving based on empirical evidence.
Federal legislation including Bill C-218 in June 2021 legalized single-event sports betting, enabling provinces to regulate this activity independently. The Canadian approach demonstrates how federal systems can accommodate diverse regulatory preferences while maintaining overarching legal frameworks. Ontario operates the most comprehensive framework through the Alcohol and Gaming Commission of Ontario (AGCO) and iGaming Ontario (IGO), which became fully independent in November 2024 following Bill 216. The province permits private operators alongside government platforms, creating competitive markets with comprehensive consumer protections. Alberta recently proposed the iGaming Alberta Act following Ontario’s model, indicating broader provincial interest in private operator licensing. In Macau, despite being China’s designated gambling hub with a massive land-based casino industry generating billions in revenue, online gambling remains strictly prohibited under the new Gaming Law that came into effect in 2023.
The prohibition threatens to create severe economic disruption across multiple sectors. The real-money gaming sector had attracted foreign direct investment exceeding ₹25,000 crore and supported over 200,000 jobs, with industry projections suggesting the ban could result in massive layoffs, startup closures, and technology talent migration to other markets. Gaming companies have called for more nuanced regulation emphasizing KYC protocols, consumer safeguards, age verification, and spending caps—as opposed to outright prohibition. Yes, skill-based games like chess, fantasy sports, and e-sports are legal in most states. Chance-based games like betting or lotteries are regulated or prohibited in many states.
This groundbreaking legislation, which received Presidential approval on August 22, marks a dramatic shift from the government’s previous supportive stance toward the gaming industry. The law promises to reshape India’s digital entertainment landscape while raising serious questions about economic consequences and regulatory consistency. The PROG Act, which was passed by Parliament in August and received the President’s assent on August 22, bans online money games and money-based gaming services in the country, including their promotion.
Online gaming has additionally, introduced a greater number of aspects for consideration and thus, may invoke the application of a variety of laws like contracts law, consumer protection law, laws relating to handling ofvirtual currency or in game tokens, data protection laws, etc. Most states in the country allow participation in games of skill, except Assam, Orissa, and Telangana which have imposed a blanket ban on all games of chance as well as games of skill that involves a stake of money or betting in any form, on the outcome of the game. Goa and Sikkim are two states that have permitted participation in games of chance, to a limited extent and only if a license has been obtained specifically for such purpose.
The majority of the State Gaming Laws do not impose social responsibility requirements on operators as most of them have been enacted to forbid gambling. Though, under the Nagaland Rules, there are certain social responsibility requirements that the operators must follow when offering games of skill in the state – for instance, games for stakes can only be played by those above the age of 18 years. Though there can be different formats in which bingo is played, each of these formats (whether played online or land-based) would fall either in the category of lotteries or games of chance. For lotteries, only some states permit it under specific conditions, please refer to the corresponding row below on “Lotteries”. The state of Sikkim in the north-east of India, and the state of Goa in the west and the union territory of Daman and Diu in the west, regulate casino games in land-based form through state-specific laws.
The regulatory trend indicates movement toward private operator licensing while maintaining strong consumer protections and provincial oversight authority. The Gaming Act marks a decisive move by the Central Government to bring online money gaming under its direct regulatory control. By doing so, the Gaming Act shifts the debate from the Union List–State List divide to the Central Government’s plenary powers over sovereignty, public order, and national security. The current version of the Gaming Act leaves several critical details unclear, creating a need for further clarification. It does not provide a timeline for ceasing the operations of online money games, nor does it specify how companies should handle existing user balances.
Therefore, each game has to be considered individually to categorize them as either a game of skill or a game of chance. Any game in which the outcome is determined purely by mere luck is a game of chance. This rule, one of the oldest in India, bans all forms of gambling except lotteries. B) The Act introduces an expansive definition of “other stakes” to include anything “recognised as equivalent or convertible to money,” such as credits, coins, token or objects (real or virtual), purchased directly or indirectly in relation to an online game.
The authority has developed new portal systems including the Games Register operational by October 2024 to streamline certification processes. Denmark operates through the Danish Gambling Authority (DGA), which has implemented comprehensive reforms including mandatory B2B game supplier licensing from January 1, 2025. This represents an innovative approach requiring all game suppliers to obtain licenses from the DGA to offer services to licensed gambling operators in Denmark.
