Is Casino Legal in India?

A Legal System Rooted in Colonial-Era Law

The foundation of gambling regulation in India is the Public Gambling Act of 1867, a colonial law that prohibits the operation of public gambling houses. Enacted more than 150 years ago, the Act remains in force in many parts of the country, despite being ill-suited to modern gaming formats, particularly online platforms. It defines gambling broadly and offers no distinction between different types of games, nor does it anticipate technological developments.

The Indian Constitution, however, gives states the authority to legislate on matters related to gambling. Under Entry 34 of the State List in the Seventh Schedule, each state can frame its own laws to allow or prohibit gambling activities. This has led to a regulatory patchwork, where casino gambling is banned in most states but permitted under specific conditions in a few.

Where Are Casinos Legal in India?

In 2025, only three regions in India allow legal land-based casinos:

• Goa: The most prominent casino destination in India. Under the Goa, Daman and Diu Public Gambling Act, 1976, casinos are allowed in five-star hotels and on offshore vessels. Goa hosts both land-based and floating casinos on the Mandovi River.

• Sikkim: Casinos are permitted under the Sikkim Casino Games (Control and Tax) Act, 2002. The state also made an early attempt to regulate online gambling, though with limited implementation.

• Daman: Part of the union territory of Dadra and Nagar Haveli and Daman and Diu. Daman has approved land-based casino operations, although the market remains small.

In contrast, states like Maharashtra, Telangana, and Andhra Pradesh continue to enforce strict bans on all forms of gambling, including casinos.

Legal Distinction Between Skill and Chance

A key aspect of Indian gambling law is the distinction between games of skill and games of chance. This differentiation is important because games of skill are generally exempt from prohibitions under most gambling laws.

In landmark judgments, the Supreme Court of India has held that games such as rummy (State of Andhra Pradesh v. K. Satyanarayana, 1968) and horse racing (K.R. Lakshmanan v. State of Tamil Nadu, 1996) involve substantial skill and therefore do not constitute gambling under the Public Gambling Act. Similarly, fantasy sports have received court backing as games of skill.

However, traditional casino games such as slots, roulette, and baccarat are unambiguously considered games of chance. As a result, their legality depends entirely on whether the state has passed laws to explicitly permit them. In most Indian states, they remain banned.

Is Online Casino Legal in India?

India’s legal treatment of online gambling is one of ambiguity and inconsistency. The Public Gambling Act does not refer to online or digital formats, and most state laws have not been updated to reflect the rise of internet-based gaming. This gap has allowed offshore online casinos to offer services to Indian players, often using local payment gateways, cryptocurrencies, or international wallets.

• Nagaland: Passed the Nagaland Prohibition of Gambling and Promotion and Regulation of Online Games of Skill Act, 2016, allowing licenses for online games of skill—but not for games of chance.

• Sikkim: Tried to issue licenses for online gambling under the Sikkim Online Gaming (Regulation) Act, 2008, but later restricted it to intranet-based platforms.

• Telangana, Andhra Pradesh, and Tamil Nadu: Introduced bans on online rummy and poker, citing addiction and financial risk, despite earlier legal recognition of skill-based games.

While offshore online casinos continue to accept Indian players, their legal status is murky. These platforms often operate from jurisdictions like Curaçao or Malta and offer games that would be illegal if hosted within India.

The Ministry of Electronics and Information Technology (MeitY) introduced a set of amendments to the IT Rules in April 2023, aiming to regulate online real-money games. These amendments require gaming platforms to follow know-your-customer (KYC) norms, implement grievance redress mechanisms, and register with self-regulatory bodies. However, the rules stop short of creating a central licensing regime or clarifying the legality of games involving wagering.

Financial Regulation and Enforcement Challenges

In the absence of a dedicated gambling regulator, financial and cyber enforcement has taken on greater importance. The Reserve Bank of India (RBI) has warned banks and payment service providers about processing payments linked to illegal betting sites. Some banks have proactively blocked card transactions to known gambling operators. Still, enforcement remains inconsistent, and many offshore sites continue to operate openly, often advertising in local languages and accepting payments in Indian rupees.

Another regulatory concern is the Foreign Exchange Management Act (FEMA) and the Prevention of Money Laundering Act (PMLA). Use of foreign-based gambling platforms could potentially violate these laws, especially when winnings are repatriated without tax disclosures. Despite these risks, there have been few prosecutions of individual players, and the legal framework remains more focused on operators than users.

Calls for a Unified Regulatory Framework

Industry bodies like the All India Gaming Federation (AIGF) and the E-Gaming Federation (EGF) have repeatedly called for the creation of a national regulatory framework to bring consistency to gambling laws, especially in the online domain. Advocates argue that a clear law would help protect consumers, curb illegal operators, and generate tax revenue.

Despite this, political resistance remains strong. Gambling is still considered socially undesirable by many policymakers, and any move to legalize or centralize regulation often faces pushback on moral or public health grounds.

Meanwhile, India’s Goods and Services Tax (GST) regime imposes a flat 28% tax on the face value of bets placed in casinos or online platforms—regardless of whether the player wins or loses. This heavy tax burden, coupled with legal uncertainty, deters investment and innovation in the sector.