The law changed in 2026. The Promotion and Regulation of Online Gaming Act, 2025 now bans all online money games, whether skill or chance. Real-money fantasy sports, rummy and poker, which earlier ran as skill games, are no longer legal to play for money online. This guide explains what changed, what is still legal, and what to do if you have lost money.
🟢 Verified and last reviewed: 1 June 2026 · RTI Wiki editorial team · Checked against the Promotion and Regulation of Online Gaming Act, 2025 (MeitY), in force 1 May 2026.
For years, Indian courts separated games of skill (then generally legal) from games of chance (gambling, generally banned). Rummy was held a game of skill in State of AP v. K. Satyanarayana (1968), horse racing in Dr. K. R. Lakshmanan v. State of TN (1996), and fantasy sport in Varun Gumber v. UT, Chandigarh (2017). Real-money skill platforms operated under state laws, and from 2023 the centre's IT Amendment Rules tried to regulate them through Self-Regulatory Bodies, with 28% GST on bets and 30% TDS on winnings.
That regime has been replaced. The Promotion and Regulation of Online Gaming Act, 2025 received Presidential assent on 22 August 2025, and the Act with its Rules came into force on 1 May 2026. Section 5 prohibits all online money games, and Section 2(1)(g) defines an online money game as one played for a fee or stake to win money “irrespective of whether such game is based on skill, chance, or both.” In short, if you pay money online hoping to win money, the format is now banned, even if it is mostly skill.
A name does not make an app legal. “Prediction”, “fantasy”, “VIP tips”, “colour trading” or “investment game” are still banned if you pay online to win money.
| Activity | Penalty |
|---|---|
| Offering or enabling an online money game | Up to 3 years imprisonment or a fine up to â‚ą1 crore (higher for repeat offences) |
| Advertising or promoting an online money game | Up to 2 years imprisonment or a fine up to â‚ą50 lakh |
| Facilitating payments for an online money game (banks, payment apps) | Enforcement action; up to 3 years or â‚ą1 crore |
| Running a non-compliant app or website | Blocking under the Information Technology Act, 2000 |
The penalties target operators, advertisers and payment enablers. As a player, your real exposure is losing your deposit, having your bank account frozen if it touches a flagged merchant, and a tax demand on any winnings.
No, not for money. Although courts earlier treated fantasy sport as a game of skill, paid online fantasy contests are online money games and are banned from 1 May 2026 under the Online Gaming Act 2025. Only free contests with no money staked remain allowed.
No. Online poker played for money is banned under the 2025 Act, regardless of the older skill-versus-chance argument.
No, not for money. Real-money online rummy is now banned, even though offline or free rummy is not a money game.
No. These are offshore betting sites, illegal for Indians, with UPI deposits flagged and criminal exposure. Offering or facilitating such play is now an offence under the 2025 Act.
Those rules applied to real-money gaming under the earlier regime. Because online money games are now banned, there is no legal real-money platform to deposit into. If you have past winnings, tax law can still apply to them, so disclose them in your ITR.
Yes. Recognised e-sports without betting and free-to-play social games with no monetary wager are expressly permitted under the Act.
Only authorised state-government lotteries in states that run them. Private or foreign online lotteries are illegal.
Offering an online money game can attract up to 3 years or â‚ą1 crore; advertising one up to 2 years or â‚ą50 lakh; facilitating payments up to 3 years or â‚ą1 crore. The penalties target operators, advertisers and payment enablers.
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Last reviewed: 1 June 2026 — RTI Wiki editorial team. Updated to reflect the Promotion and Regulation of Online Gaming Act, 2025 (in force 1 May 2026), which replaced the earlier IT Rules 2023 self-regulation regime.
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