Online Casino Legal in India: The Reality Behind the Laws

By Nicole Parsons

Online gambling in India is a bit of a minefield. It’s a booming industry, yet the laws surrounding it are anything but clear. Every day, millions of players log in to place bets on poker, roulette, and cricket, but depending on where they live, they might be treading on thin ice legally. Some states have opened the doors to gambling, while others have slammed them shut.

The real issue? There’s no uniform law governing online casinos across the country. Goa and Sikkim have embraced physical casinos, but when it comes to internet gambling, most of India is in limbo. The Public Gambling Act of 1867—a relic from colonial rule—never accounted for the rise of digital platforms, leaving players to navigate a legal gray area.

That’s why understanding the situation is key. Choosing legitimate, secure platforms can help players avoid unnecessary risks. If you’re looking to dive into gambling games in India, there are plenty of options tailored for Indian users.

But here’s the big question: Is online betting actually legal in India? What about horse race betting? Let’s get straight to the facts.

The Legal Maze of Online Casinos in India

Indian gambling laws are a mess—outdated, vague, and different in every state. The Public Gambling Act of 1867 is still the go-to law, even though it was written before anyone had even heard of the internet. It bans running or visiting a gambling house but says absolutely nothing about online casinos. That’s the loophole keeping things in limbo.

Instead of a clear national policy, states are left to make their own decisions. Goa, Sikkim, and Nagaland have welcomed gambling with proper regulation, while Telangana and Andhra Pradesh have slammed the door shut, banning online betting outright.

Where Things Stand

• The Public Gambling Act doesn’t cover online betting—so technically, it’s neither legal nor illegal nationwide.

• States control the rules—some allow it, some don’t.

• Games of skill (legal) vs. games of chance (mostly illegal)—that’s how the Supreme Court draws the line.

• Sikkim and Nagaland have licensing systems for online casinos and poker, while others refuse to acknowledge them.

And then there’s the offshore angle. Since these betting sites aren’t based in India, local laws don’t touch them. That’s why so many players use them without consequences. But not all of them are playing by the rules—some are licensed, secure, and reliable, while others will happily take your money and disappear. If you’re getting involved, be smart—check the licenses, security, and payout record before signing up.

Online Betting Sites Legal in India: The Reality

India doesn’t have a law that outright bans offshore betting sites, and that’s why international casinos freely accept Indian players. These platforms operate under licenses from places like Malta, Curacao, and the UK, giving them a legal shield outside India’s jurisdiction. They aren’t registered under Indian law, so the government can’t regulate them—but that doesn’t stop millions of players from using them every day.

How Offshore Casinos Work for Indian Players

• Licensed overseas – Since they’re based abroad, Indian gambling laws don’t apply.

• Multiple payment methods – UPI, Paytm, NetBanking, and even cryptocurrency make deposits and withdrawals simple.

• Localized experience – Many sites offer games in Hindi and accept Indian Rupees (INR).

• Customer support – Indian players get help in multiple local languages.

Since online betting sites legal in India operate in a legal loophole, using them isn’t against the law. However, there’s still a catch—your winnings are taxable.

Legal Considerations for Indian Players

• Playing on offshore sites? Not illegal. Running one in India? Definitely illegal.

• Winnings over ₹10,000 get hit with a 30% tax, deducted before payout.

• Some states, like Maharashtra, ban online gambling, while others ignore it completely.

Why Picking the Right Platform Matters

Not all casinos play fair. Some are licensed, regulated, and trustworthy, while others are shady operators waiting to vanish with your cash. If you're getting involved, be smart—choose a platform with proper licensing, strong security, and verified payment options.

Horse Race Betting Legal in India: The Big Exception

Unlike online casinos, horse race betting is completely legal in India. The reason? The Supreme Court ruled in 1996 that betting on horse racing isn’t pure luck—it takes skill to analyze a horse’s form, track conditions, and jockey performance. That distinction makes it legal, separating it from the broader gambling bans in the country.

Why Horse Race Betting is Allowed

• Recognized as a skill-based activity – The courts decided it involves more than just luck.

• Regulated at the racecourse level – Authorities in Mumbai, Kolkata, and Bangalore oversee legal betting.

• Licensed bookmakers operate legally – Players can place bets on-site or through authorized online platforms.

Where to Bet on Horse Racing in India

Several betting platforms legally offer horse racing odds for Indian punters:

• Betway – Covers both Indian and international races.

• 10CRIC – Specializes in Indian sports betting, including horse racing.

• Parimatch – Offers solid odds and quick payouts.

If you're after a legal betting option, horse racing is one of the safest choices. Just make sure you’re betting through licensed bookmakers—otherwise, you’re on shaky ground legally.

The Information Technology Act and Online Gambling: A Misfit Law

India’s Information Technology Act, 2000, was meant to tackle cybercrime, not regulate online gambling. But since Indian law doesn’t directly address internet betting, some state governments have used the IT Act to justify banning online casinos. It’s a workaround, not a clear-cut legal stance.

How the IT Act is Used Against Online Gambling

• It was written to combat cyber fraud, hacking, and data theft—gambling wasn’t even in the picture.

• Telangana and Andhra Pradesh have leaned on it to push through blanket bans on online betting.

• Offshore casinos remain untouched since they don’t operate on Indian servers.

The Cyber Security Risks

With no nationwide regulations, online gambling in India is a free-for-all. That opens the door for fraudulent websites, rigged games, and scams targeting unsuspecting players. To stay out of trouble:

• Stick to licensed, well-known casinos that actually pay out winnings.

• Avoid shady platforms that don’t offer proper encryption or secure payment methods.

• Use two-factor authentication (2FA) and strong passwords to protect your account.

The Indian government hasn’t stepped up with a clear legal framework for online casinos. Until they do, offshore platforms will continue dominating the market, operating in a space that Indian law simply doesn’t control.

How Indian States Regulate Online Casinos

The legal status of online casinos in India isn’t uniform—it varies from state to state. While some states have embraced regulated gambling, others have taken a hard stance against it.

Goa, Sikkim, and Nagaland: The Progressive States

Three states—Goa, Sikkim, and Nagaland—have created frameworks for regulating gambling.

• Goa: Physical casinos are legal, operating in five-star hotels and offshore vessels. However, online gambling remains unregulated.

• Sikkim: The Sikkim Online Gaming (Regulation) Act allows licensed operators to offer online gambling services within the state.

• Nagaland: The Nagaland Prohibition of Gambling and Promotion of Online Games of Skill Act regulates online skill-based games like poker and rummy.

States That Have Imposed a Ban

In contrast, some states have completely outlawed online gambling:

• Telangana and Andhra Pradesh: These states have explicitly banned online gambling, with heavy penalties for violators.

• Karnataka: A ban was introduced but is currently under legal challenge.

The Rest of India: A Legal Gray Area

In most Indian states, online gambling laws remain unclear. Since the Public Gambling Act, 1867, doesn’t mention online betting, offshore platforms continue to operate freely, filling the legal gap.

State-Wise Legal Status of Online Gambling in India

State

Legal Status

Regulations

Goa

Legal (regulated)

Casino licenses issued

Sikkim

Legal (regulated)

Online gaming licenses available

Nagaland

Legal (regulated)

Licenses for online skill gaming

Maharashtra

Unclear

Gambling banned except lotteries

Telangana

Illegal

Online gambling prohibited

Andhra Pradesh

Illegal

Complete ban on online betting

Karnataka

Illegal (under review)

Ban imposed but legally challenged

The Future of Online Gambling Laws in India

India’s online gambling industry is growing at a relentless pace, yet the laws surrounding it remain tangled and outdated. Players continue to place bets, offshore platforms keep operating, and the government sits on the sidelines. With no national regulations in place, the industry is operating in a grey zone where everyone makes money—except the Indian authorities. If the government takes the right steps, it could bring structure, security, and a steady stream of tax revenue to an already booming sector.

What Needs to Change?

• A Unified Licensing System – Right now, gambling laws are all over the place—some states regulate, others ban, and most ignore. A centralized licensing system would finally bring clarity.

• Player Protection Laws – Without regulation, fraudulent casinos thrive. A proper framework would force operators to ensure fair play, process withdrawals without tricks, and protect customer funds.

• Taxation That Works – Offshore betting sites are raking in money from Indian players, but none of it is taxed. If online gambling was legalized, a structured tax system could generate billions annually.

Technology & Safer Gambling

Gambling platforms worldwide are already integrating AI to monitor problem betting behavior and prevent fraud. Blockchain payments offer complete transparency, reducing financial disputes. If India implements proper oversight, these tools could be used to protect players instead of leaving them at the mercy of unregulated platforms.

“Right now, the Indian government is ignoring a massive industry that’s running on autopilot. Smart regulations would protect players, cut out shady operators, and turn gambling into a legitimate revenue source.” — Rajesh Mehta, Legal Analyst

Countries like the UK, Malta, and even parts of the United States have proven that legal gambling can be both safe and profitable. If India follows suit, players would no longer have to rely on foreign sites operating in legal limbo, and the government would finally benefit from an industry that’s already thriving under its nose.

Frequently asked questions

1. Is online casino legal in India?

It depends on the state. Goa, Sikkim, and Nagaland allow regulated gambling, while other states either ban it or leave it unregulated.

2. Are offshore casinos legal for Indian players?

Yes, there is no law prohibiting players from using offshore betting sites. Many international casinos cater to Indian players.

3. Is horse race betting legal in India?

Yes. Horse racing is legal and classified as a game of skill by the Supreme Court.

4. Do Indian laws regulate online betting sites?

Not at the national level. Some states, like Sikkim and Nagaland, have introduced their own regulations.

5. What payment methods can Indian players use on online casinos?

Most offshore casinos support UPI, NetBanking, Paytm, credit/debit cards, and cryptocurrencies.