Partially Regulated
State Governments are empowered to legislate on betting and gambling, as well as games of skill (betting and gambling are state subjects under the Constitution of India. Certain High Courts have also recognised that States may regulate games of skill), with each State having its own law (“Gaming Enactments”). Most Gaming Enactments prohibit gambling, i.e., “the act of wagering or betting” for money or money’s worth on games of chance, however, exclude games of skill from their prohibitions. There is no regulation through a licensing regime to offer games of skill in most Indian States (apart from Sikkim, Nagaland, and Tamil Nadu). The States of Goa and Sikkim have enacted laws to regulate brick and mortar casinos in five-star hotels and onboard ships.

At the central level, the Ministry of Electronics and Information Technology (“MeitY“) and the Ministry of Youth Affairs and Sports have been appointed as the nodal ministries for online gaming and e-sports respectively. Furthermore, the Ministry of Information and Broadcasting (“MIB“) has been given authority over internet ads, and such authority may extend to gaming advertisements. Previously, there was no Central Ministry designated for these areas.

Subsequent to the foregoing, the MeitY had enacted central regulations, especially for real money gaming, via amendments (“2023 Amendments“) to the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021 (“IT Rules“) on April 6, 2023. The 2023 Amendments sought to establish a light-touch, co-regulatory framework between MeitY and designated self-regulatory industry bodies (“SRB“), consistent with the government’s general goal of eliminating prescriptive regulations and improving the ease of doing business in India. The 2023 Amendments introduced regulations for  permissible online real money games (“PORMG”), other online games, and online gaming intermediaries (“OGI”) seeking to offer PORMG. The 2023 Amendments were not envisioned to replace the State-wise Gaming Enactments, and were meant to co-exist with them.

The 2023 Amendments were to be operationalized through the designation of at least 3 self-regulatory gaming bodies. Accordingly, subsequent to their introduction, the (i) All India Gaming Federation, the (ii) Esports Player Welfare Association, and (iii) the E-Gaming Federation (“EGF”) jointly with  the Federation of Indian Fantasy Sports had each submitted three applications to be designated as an SRB. However, as per news reports, MeitY has abandoned the plan to develop SRBs for game certification, due to concerns over the heavy domination of gaming companies on such SRBs which would lead to a lack of independent decision-making. Accordingly, the 2023 Amendments have not been operationalised and will likely not be operationalised. We have therefore not covered them in detail in this outline.

Apart from the gaming enactments, Certain products are regulated under special laws, such as the Lotteries (Regulation) Act, 1998 and the Lotteries (Regulation) Rules, 2010, (“Lottery Laws”) which regulate State Lotteries. Additionally, the Prize Competitions Act, 1955 (“PCA”) regulates certain types of competitions. Section 2(d), PCA: Prize competition means “any competition (whether called a crossword prize competition, a missing-word prize competition, a picture prize competition or by any other name) in which prizes are offered for the solution of any puzzle based upon the building up, arrangement, combination or permutation, of letters, words, or figures.”

For offshore operators, certain other laws apply to offering online games in India. For instance, the Foreign Exchange Management Act (“FEMA”) read with the Foreign Exchange Management (Current Account Transaction) Rules, 2000 (“Current Account Rules”) prohibit remittances by Indian users for certain gaming activities. Further, Under the Foreign Direct Investment Policy of India (the “FDI Policy”) issued by the Indian government’s Ministry of Commerce and Industry and as codified into law by the FEMA and the Foreign Exchange Management (Non-Debt Instruments) Rules 2019 (the “Non-Debt Rules”), FDI is prohibited in the following sectors: (i) lottery business (including state or private lotteries and online lotteries); and (ii) gambling and betting (including casinos). In January 2023, the Bombay High Court held that foreign investments in entities offering games with no real-money rewards do not amount to gambling. Further, the Bombay High Court held that for a game to amount to gambling, it must be (i) predominantly of chance, and (ii) played for a reward.

As per reports, given the existing regulatory ambiguity in the sector, the Indian government is considering a proposal to explicitly clarifying 100% FDI in real money games of skill entities through the automatic route, i.e., where no permission is required. In pursuance of the same, the Department for Promotion of Industry and Internal Trade (“DPIIT”) has sought clarity on the distinction between games of skill and games of chance from various ministries, such as MIB, MEITY and NITI Aayog, to draft a policy to this effect. Discussions are reportedly underway at various levels of the government regarding the DPIIT proposal.

Market size
As per reports, India’s gaming market size is estimated to be around USD 3.81 billion in FY 24, and the total gaming market size is predicted to cross USD 9.2 billion by FY 29.

Revenue in FY 2023, by types of games:

Total: INR 164 billion

• Real Money Games (“RMG”): INR 135 billion
• Online Fantasy Sports: INR 28 billion
• Non RMG and Esports: INR 28.3 billion

Total number of users/gamers in FY 2024: Around 590 Million. India also has the largest fantasy sports market with 180 Million users.

Competitive landscape
India does not have a public registry of gaming operators, hence there are no clear market figures in terms of the number of operators.

Localisation
Payment methods accepted on gaming platforms in India include methods such as debit/credit cards and United Payments Interface (UPI), which is a popular real-time mobile payment method that allows users to transfer funds between bank accounts, net banking and prepaid payment instruments such as wallets. Certain gaming operators accept payment in cryptocurrency.

The most popular and prominent marketing/advertising channels in India are online/digital (through social media), print advertisement, electronic media and cable television, telecommunication services (such as SMS), and physical advertisements such as billboards/hoardings.

Top Key Attractions and Challenges
Attractions

• Games of skill are permitted to be offered for money in most states in India, and several game formats such as fantasy sports and real-world games such as chess, Ludo, and Rummy have a large number of players in India. As per recent reports, India’s online gaming market revenue was USD 3.7 billion in 2024, with real money segment accounting for around 86% of the market share.
• India has seen 3 gaming unicorns (Dream Sports, Games 24×7, and MPL) and 1 successful IPO (Nazara Technologies).Hence, investments and joint ventures with Indian skill gaming companies may present a lucrative opportunity.
• Casual Games: In 2023, casual gaming grew by 24% and is projected to grow fastest, amongst other categories, supported by frictionless in-app purchases. Further, in 2025, it has been reported that casual family games, along with battle royales and puzzles are the most played games in India. At present, there are very limited regulations for casual games in India, i.e., free-to-play games without any deposit nor any real money winnings. These games do not attract the definition of ‘gaming’ under most Gaming Enactments and hence do not attract the applicability of these laws in most Indian States.
• Increased Tax Collections and Real Money Gaming: The contribution of India’s online gaming sector to indirect tax revenues has witnessed a significant surge in recent years, increasing from approximately USD 229 million in Goods and Services Tax (“GST”) collections in FY 2020–21 to an estimated USD 2.2 billion in FY 2024–25. This is a notable development, given the fact that the sector is merely five-years old. This exponential growth has been largely propelled by business model innovations in the Pay-to-Play segment or Real Money Gaming, which now accounts for approximately 86% of the sector’s total revenue and serves as its primary growth driver.
• India’s large, youth population: With 45 billion mobile game downloads in FY 2024–25, India continues to lead the world as the largest mobile gaming market. According to a recent report, The video game market in India recorded a robust year-on-year growth of 18.4%, reaching a total revenue of USD 907.3 million in 2024. This growth was accompanied by a significant expansion in the gaming population, with 475.2 million gamers reported in 2024. The number of gamers is projected to increase steadily, reaching approximately 724 million by 2029, reflecting a five-year CAGR of 8.8%. In addition to being the second most populous country, India has one of the largest youth populations in the world. This could lead to an increase in the number of players in India, including those who may consider gaming and e-sports as a career option.
• Ease of access to smartphones and the internet: India has the highest consumption of mobile data per smartphone user on a global level. This makes India a large market of people with easy smartphone and internet access to access online games. Based on a study released in November 2024, India has the world’s second largest market for mobile gaming. Based on another study, mobile based gaming comprises of 90% of the online gaming market in India.
• Regulatory certainty for FDI on the horizon: As stated above, the Indian Government is considering a proposal to explicitly clarify that 100% FDI in entities offering real money games of skill through the automatic route is permissible. This will enhance regulatory certainty and boost investments in the sector.
• High Courts prohibit bans on games of skill: Several Indian High Courts have recognized that State-imposed bans on real money games of skill are unconstitutional, whilst recognizing it may be subject to regulation by the State. There is hence a judicial trend upholding that offering and playing games of skill is a constitutionally protected activity in India.
• Although the 2023 Amendments were not operationalised through the designation of self-regulatory bodies, there is a growing industry support and reliance on the self-regulatory industry bodies. For instance, Meta now accepts certificates from the All India Gaming Federation (AIGF), one such self-regulatory body confirming games are skill-based for advertisers advertising such games on Meta. Additionally, the Advertising Standards Council of India (ASCI), a self-regulatory advertising body that has been recognized by Indian courts, has signed a memorandum of understanding (MOU) with the FIFS, AIGF, and E-Gaming Federation with effect from January 2, 2025, to identify and report advertisements by unlawful offshore gambling operators, through a special monitoring cell, to the MIB.

Challenges

• State specific nature of laws: Each state in India has its own Gaming Enactment. While most states exclude games of skill from the prohibitions under their Gaming Enactments, some States have sought to ban skill games.
• Further, only a few State laws identify which games are games of skill (e.g., West Bengal, Kerala, and Nagaland). Judicial precedents have only recognised certain games as games of skill. There is no single machinery currently to test whether a particular game is a game of skill throughout India. These factors have resulted in State-wise uncertainty for operators. Regulation of the online gaming industry by the central Government.
• Gambling/games of chance prohibited: In India, most Gaming Enactments prohibit games of chance or gambling for money. Games such as sports betting and most casino games are regarded as games of chance/gambling activities, and hence prohibited in most Indian States. There has been increased regulatory scrutiny of offshore sports betting and casino operators offering their products remotely in India, as discussed in the Enforcement section below.
• High income tax rates: Tax on winnings from online games are calculated at the rate of 30% on the amount of net winnings from the online games. Further, the person responsible for paying any income by way of winnings from any online games during a financial year has an obligation withhold tax at the rates in force.
• GST Amendments and Retrospective GST Notices: The GST regime was amended to levy GST at 28% on the full face value of bets deposited with online gaming operators with effect from 01.10.2023. Please see the Taxes section below for a detailed explanation of the amendments. While the GST amendments were operationalised from 01.10.2023, GST authorities have been seeking imposition of GST at the rate of 28% on the deposit amount retrospectively (for the period March 2017 – July 2023), by issuing show cause notices to operators for previous years as well. Operators had been paying GST at the rate of 18% on the service fee prior to the amendments. Operators have challenged the issuance of these notices before the High Courts, and in certain cases the High Courts have issued stay orders, staying the operation of the notices. These cases have now been transferred to the Supreme Court, which is hearing the petitions, with the next hearing scheduled for July 15, 2025 (tentatively).

Products
As stated above, most Gaming Enactments do not regulate specific products/games, but (1) prohibit gaming/gambling, i.e., games of chance, and (2) exclude games of skill from their purview. Only certain games have been identified as games of skill under the Gaming Enactments or through court jurisprudence. We have discussed this in the product sections below.

“Gambling” or “Gaming” as per most Gaming Enactments is understood to mean “the act of wagering or betting” for money or money’s worth on games of chance, and winning prizes in terms of money or money’s worth. Hence, free-to-play / casual games do not amount to ‘gaming’ under most Gaming Enactments. Further, typically, under most Gaming Enactments “gambling” or “gaming” does not include (i) wagering or betting upon a horse-race/dog-race, when such wagering or betting takes place in certain circumstances; and (ii) lotteries. Most Gaming Enactments also exclude games of skill from their purview.

In addition, the Prize Competitions Act, 1955 (“PCA”) regulates certain types of competitions involving the building up, arrangement, combination or permutation of letters, words, or figures. In the case of R.M.D. Chamarbaugwala & Anr. vs. Union of India & Anr., the Supreme Court held that the PCA would only apply to prize competitions that were of a gambling nature. However, due to the types of games covered under the PCA (i.e., crossword prize competitions, etc., which appear to be games of skill), there is an anomaly in the scope of the PCA. The PCA regulates prize competitions in which (a) the total value of prizes offered (whether in cash or otherwise) exceeds INR 1,000 (approx. USD 12) and (b) the value of entries exceeds INR 2,000 (approx. USD 24). Any person intending to conduct such prize competitions has to obtain a licence to engage in such activities, and the details for obtaining such licences are provided in the rules framed thereunder.

Other than this, various aspects affecting the gaming industry from investments to advertisements are regulated under separate bodies of law, which we have elaborated upon under the product-specific sections.