Online Gambling in India: Legal Status and Mobile Betting

1) New frame: PROG Act 2025 - what is allowed, what is prohibited

India has introduced a single federal mode Promotion and Regulation of Online Gaming Act, 2025 (PROG Act). Its logic is simple: the state encourages e-sports and online social games, but prohibits "exploitative and harmful online money games" - that is, any games with money bets/winnings online. The Online Gaming Authority of India is being created for the industry (game registration, classification, supervision, sanctions).

In parallel, the Ministry of Electronics (MeitY) published a draft by-law for the PROG Act: the procedure for registering "social games" and e-sports, criteria for classifying as prohibited online money games, the procedure for complaints and fines. Entry into force - on the dates that the center will appoint after consultations.

Bottom line for the consumer: e-sports and "social" (not cash betting) games are legal; online casinos/poker/money bets - banned federally.

2) States and courts: how the mosaic develops

Even with the passage of the PROG Act, states retain their role in public order and health. In 2025, Madras High Court confirmed the legality of Tamil Nadu's strict restrictions on online money games (night bans, age filters, verification). This shows: the regional "severity bar" may be higher than the federal one.

According to constitutional disputes over the PROG Act and previous rules, the center of gravity was transferred to the Supreme Court: he took applications from different high courts and considers key challenges centrally.

3) Taxes and finance: What's with GST and mobile payments

Prior to the 2025 reforms, real-money gaming had a GST rate of 28% (full base); the industry is challenging the taxation and additional charges for past periods - these cases are now consolidated in the Supreme Court.

After the entry of the PROG Act, online money games fall into the zone of direct prohibition, which means that their legal tax basis in India disappears: the question is now not "how much to pay," but "is it possible to offer a product." (At the same time, historical disputes over additional charges and past periods continue in the courts.)

4) Mobile Rates and Apps: What the User Sees in 2025

App stores and PSPs (UPI/IMPS/wallets) are required to correlate the policy with the PROG Act and regional regulations: applications/sites with cash rates are blocked, and payments in their favor are filtered.

• e-sports (tournaments, ratings, in-game non-financial achievements);
• online social games (no cash bet/win).
• Illegal: online casinos, poker-on-money, fantasy/rami/bets with a monetary value - regardless of whether the operator positions the game as "skill-based." The criterion is now federal: whether there is a cash bet/cash outcome means an online money game and a ban.

5) Practice for players: how to distinguish a legal product

1. No money, no risk. The game should not require a cash contribution for the sake of a chance to win money.

2. Check the offer. Inscriptions like "cash games," "deposit/within" - red flag.

3. Look at payment methods. Normal UPI providers do not make payments in favor of prohibited money games.

4. Responsible play. Even e-sports/social products should have age restrictions, parental controls, understandable privacy policies.

6) Business practice: "survival checklist" under PROG Act

Product: Leave only e-sports and/or social games. Any monetization that turns the game into a "monetary" one (bets, cash prizes, cash outs) is the way to ban.

Registry and labeling: prepare dossier for Online Gaming Authority of India (game description, age category, revenue model, UGC moderation). The registration period is up to 5 years, with the possibility of suspension in case of violation.

Compliance by design: age filters, RG mechanics (time/donation limits), content moderation, audit log, quick complaint processing (three-level scheme - provider → GAC → Authority).

Legal risks: in states with "increased severity" (e.g. Tamil Nadu), consider local restrictions in excess of federal ones.

7) What happens next (cautious forecast until 2030)

The ultimate "fork" through the courts: the Supreme Court will dot complaints against the PROG Act and past tax disputes; the basic ban on online money games, however, has already been recorded in the text and explanatory note to the rules.

Cleaning stores and payments: app stores and payment rails will bring filters to "default," reducing gray channels.

Growth of e-sports/social games: Brands will shift investment in competition, UGC platforms and family-friendly soft-monetised formats.

Self-regulation 2. 0: instead of the previous SRO experiments, the full focus will shift to the state registrar (Authority) + industrial codes as a "superstructure," and not a replacement for the law.

2025 was a turning point: India federally banned online games for money, while opening a "green corridor" for e-sports and social games. For players, this means a simple rule: any cash bet/cash prize online is illegal. For business - abandoning RMG models, registering "cash-strapped" games and building compliance around age, time, content and privacy. The courts will still clarify the details, but the vector is clear: mobile bets and online casinos in India - "no," e-sports and social - "yes, subject to the rules."

Condition: October 2025.