Online casinos have taken the world by storm — and India is no exception. With millions of users logging in to play roulette, poker, or slots from their smartphones, the question arises: Is online gambling legal in India? The answer isn’t as straightforward as you might think. India’s gambling laws are a mixed bag of colonial-era rules, modern interpretations, and state-by-state decisions.
Legal Framework in India
The Public Gambling Act of 1867
The main piece of legislation that governs gambling in India is the Public Gambling Act of 1867. This law was enacted during the British colonial period and was designed to prohibit the operation and patronage of physical gambling houses. According to this Act, running a gambling house or being found in one is considered a criminal offense, punishable with fines or imprisonment. However, since this law was written over 150 years ago, it obviously makes no mention of online gambling, digital casinos, or virtual betting platforms, as the internet did not exist at the time.
Due to its outdated nature, the Act does not adequately cover or regulate the modern online gambling ecosystem. There is no reference to internet-based casinos, remote gaming servers, or online betting applications. As a result, online casinos fall outside the direct scope of this legislation, which creates a major legal gray area. This lack of clarity has been one of the key reasons why offshore operators have been able to offer services to Indian users without facing legal consequences from Indian authorities.
Role of Individual States
Under the Indian Constitution, gambling is a subject that falls under the jurisdiction of individual states. This means each state has the authority to formulate its own laws and policies regarding gambling and betting activities. As a result, the legality of gambling—including online gambling—can vary dramatically depending on which part of the country you’re in. For example, states like Goa and Sikkim have embraced more liberal attitudes by allowing casinos and regulating online gambling platforms, while others like Telangana and Tamil Nadu have enforced outright bans.
This decentralized legal approach has led to a fragmented regulatory environment, with no uniform standard across the country. It also means that a platform considered legal in one state might be illegal in another. This complexity makes it difficult for users to understand their rights and responsibilities, and also presents a challenge for law enforcement and policymakers trying to regulate the online gambling industry effectively across state lines.
Are Online Casinos Legal in India
The Grey Area of Indian Gambling Laws
Online casinos in India operate in a legal gray zone. While there are no federal laws that explicitly legalize online gambling, there are also no specific laws that prohibit Indian players from accessing online casinos—particularly those that are based outside of India. This legal ambiguity has created a loophole that offshore operators have successfully taken advantage of. These operators provide Indian users with access to a wide range of casino games, often accepting payments in Indian Rupees (INR) and supporting local payment gateways.
The absence of clear federal regulation has created uncertainty for both players and operators. Because online gambling is not formally recognized or controlled by Indian law, users are left with little to no protection in the event of fraud, payment issues, or disputes. At the same time, operators are free to cater to the Indian market without adhering to any kind of national regulatory framework. Until India enacts comprehensive legislation addressing online casinos, this legal gray area is likely to persist.
The Role of Foreign-Based Online Casinos
The majority of online casinos accessible to Indian players are based outside the country, in jurisdictions such as Malta, Curacao, Gibraltar, and the Isle of Man. These platforms operate under international licenses that comply with the laws of their host countries, but they are not regulated by any Indian authority. Since these websites are not physically hosted in India and are not run by Indian nationals from within India, they don’t fall under Indian legal jurisdiction in most cases.
For Indian users, this means that playing on these offshore sites is technically not illegal, but it comes with its own set of risks. Indian authorities have limited power to take action against these operators, and players have limited recourse in case of fraud or non-payment. Despite these risks, many users are drawn to foreign-based online casinos because they offer better game variety, more secure payment systems, and attractive promotions targeted at Indian players.
What’s Allowed and What’s Not
When it comes to the legality of online casinos in India, it’s important to distinguish between what is currently permitted and what is explicitly prohibited. Here’s a simplified breakdown:
Allowed:
- Playing on offshore online casino websites that accept Indian players.
- Depositing and withdrawing funds in Indian Rupees through legal payment gateways (if not blocked by the bank or government).
- Accessing online gambling apps or websites in states that have not banned them.
Not Allowed:
- Operating an online casino platform from within Indian territory without a state-issued license.
- Advertising gambling services to Indian users in states where gambling is banned.
- Offering games of chance online without approval in restrictive states like Telangana, Tamil Nadu, or Andhra Pradesh.
This breakdown highlights the core issue: while users can generally play without facing legal penalties, operators within India are prohibited from offering such services without navigating complex state licensing laws. Until a centralized regulatory body is formed, this imbalance is likely to continue.
State-Wise Breakdown of Online Casino Laws
Different Indian states have adopted different stances toward gambling and online casinos. While some are cautiously progressive, others remain conservative. Let’s explore how three key states—Goa, Sikkim, and Nagaland—approach the issue, followed by a comparison table for quick reference.
Goa
Goa is one of the few Indian states where gambling has a visible and legal presence. It allows physical casinos to operate on offshore vessels and in select hotels, primarily to promote tourism. These establishments are heavily regulated by the state and contribute significantly to Goa’s local economy. The state has thus developed a certain level of tolerance toward gambling as a whole, including online gambling to some extent, even though there is no structured regulatory system specifically for online platforms.
Despite its openness toward physical gambling venues, Goa has not yet established a legal framework to license or regulate online casinos directly. This means that while the state does not explicitly prohibit online gambling, it also doesn’t provide official licenses or protections to online gambling businesses or players. As a result, residents often rely on foreign platforms without legal safeguards, and local operators face a regulatory vacuum.
Sikkim
Sikkim is a trailblazer when it comes to regulating online gambling within India. The state introduced the Sikkim Online Gaming (Regulation) Rules, 2009, allowing licenses to be issued for online gaming activities. The Sikkim government has granted permits to a handful of operators to provide online games such as poker, blackjack, and sports betting. These operators must adhere to state regulations and operate under strict compliance measures, including responsible gambling policies and secure financial transactions.
However, Sikkim’s licensing is geographically restricted. Only users within the state—or in some cases, using local intranet systems—can legally access the services of licensed platforms. This limitation has restricted the growth of the market, but Sikkim remains an important example of how online gambling can be regulated effectively within the Indian legal framework.
Nagaland
Nagaland has taken a unique legal approach by separating games of skill from games of chance. Under the Nagaland Prohibition of Gambling and Promotion and Regulation of Online Games of Skill Act, 2016, the state provides licenses for skill-based games such as poker, rummy, fantasy sports, and chess. The underlying principle is that these games require strategic thinking and player skill rather than pure luck, thus not falling under the legal definition of gambling.
However, Nagaland does not license games of chance—like slot machines, roulette, or craps—as these are still considered illegal under its gambling laws. This bifurcation allows some form of digital gaming industry to flourish while still maintaining restrictions on traditional casino-style games. It offers a middle-ground model for other Indian states to potentially follow.
| State | Legal for Physical Casinos | Online Gambling License | Games Allowed |
| Goa | Yes (offshore & hotels) | No official framework | Not specified |
| Sikkim | Limited | Yes (under strict rules) | Sports betting, casino-style |
| Nagaland | No | Yes (games of skill only) | Poker, rummy, fantasy sports |
International vs. Domestic Platforms
Why Indian Users Prefer Offshore Sites
Indian players overwhelmingly gravitate toward offshore online casino platforms, and it’s not hard to see why. These websites offer a superior user experience, often featuring modern interfaces, mobile apps, live dealer games, and 24/7 customer support. In contrast, the few domestic platforms that do exist are often restricted to regional users, lack game variety, and don’t provide the same immersive environment. Offshore platforms also tend to have more robust backend security systems, giving players confidence in terms of fairness and transaction safety.
Moreover, foreign operators typically offer better promotional offers and loyalty programs. Players can take advantage of welcome bonuses, cashback, free spins, and VIP club access—features that are usually absent from domestic sites. The ability to transact in Indian Rupees and through UPI, Paytm, or other local payment gateways has made these platforms even more accessible. And since there’s less legal interference when playing on these platforms (compared to operating one), users feel they are relatively safe.
Are These Sites Legal to Use in India
Technically, yes—playing on offshore sites is not explicitly illegal under current Indian law, particularly in states that haven’t outlawed gambling. Since these websites are not operated or hosted within Indian territory, they aren’t directly governed by Indian gambling regulations. This makes them a legal loophole for Indian users who want to enjoy online gambling without technically breaking the law.
However, users should still approach with caution. Indian law may not protect players in case of fraud, delayed payments, or unresolved disputes. Since these platforms are licensed and regulated by foreign authorities, any complaints have to be taken up with those bodies—often in jurisdictions far removed from Indian courts. In essence, while it is legal for Indian players to participate, there are limited safeguards or avenues for legal recourse should things go wrong.