The Indian government has introduced a robust framework to regulate the fast-growing online gaming industry, with policies aimed at fostering transparency, user safety, and financial accountability across digital platforms. These measures come as part of the broader goal to create a secure, trusted, and accountable internet ecosystem for all users, addressing both domestic and international platforms operating in this domain.
To bring clarity and enforce fiscal regulations, the government has introduced a 30% income tax on net winnings from online games, effective from the 2024-25 assessment year, as per the Finance Act, 2023. Additionally, beginning October 1, 2023, the government imposed a Goods and Services Tax (GST) rate of 28% on online gaming platforms. Providers of online money gaming services, whether domestic or offshore, are now mandated to obtain registration under the Simplified Registration Scheme as outlined in the Integrated Goods and Services Tax Act of 2017 (IGST Act). The Directorate General of GST Intelligence Headquarters has been designated as the authoritative agency under both the Information Technology Act, 2000, and the IGST Act. This agency has the power to direct intermediaries to block unregistered or non-compliant gaming platforms, including offshore entities that violate the provisions.
While online gaming operates within a federal legal framework, matters related to “betting and gambling” are under the purview of individual states, as stipulated in Entry 34 of the State List under the Seventh Schedule of the Indian Constitution. States retain the authority to legislate and enforce regulations concerning illegal betting and gambling activities. Law enforcement agencies (LEAs) at the state and union territory levels handle the prevention, investigation, and prosecution of crimes related to illegal gaming, supported by central government advisories and financial aid for capacity building.
The enactment of the Bharatiya Nyaya Sanhita, 2023, effective from July 1, 2024, further strengthens legal deterrence against unauthorized betting and gambling. Violators face a minimum of one year and up to seven years of imprisonment, along with monetary fines under Section 112(1) of the new legal framework.
To safeguard personal data, the government has enacted the Digital Personal Data Protection Act, 2023. This legislation establishes a robust legal framework requiring Data Fiduciaries to implement advanced security and organizational measures when processing sensitive digital personal data. Supplementing this is the Information Technology (Reasonable Security Practices and Procedures and Sensitive Personal Data or Information) Rules, 2011, which set standards for handling sensitive information. The IT Act also penalizes cyber offenses such as tampering with computer systems, identity theft, and unauthorized access, with provisions for blocking orders to intermediaries that violate public order or national security interests.
Between 2022 and February 2025, the Ministry of Electronics and Information Technology (MeitY) issued 1,410 blocking orders against non-compliant online betting, gambling, and gaming websites or mobile applications under the IT Act, reinforcing the government’s commitment to public safety and regulatory enforcement.
Additionally, the Ministry of Home Affairs has established the Indian Cyber Crime Coordination Centre (I4C) to streamline and enhance law enforcement capabilities in combating cybercrime, including financial frauds related to online gaming. A National Cyber Crime Reporting Portal has also been launched to enable citizens to report cybercrimes, with incidents directed to relevant state or union territory agencies for action. The portal offers distinct mechanisms for lodging complaints, particularly for financial fraud. To support this initiative, a toll-free helpline, ‘1930,’ has been operationalized, providing assistance for registering online complaints.
The National Crime Records Bureau collects and disseminates statistical data on cybercrime, while multiple advisories have been issued to address concerns related to online gaming addiction. The Ministry of Education and the Ministry of Information and Broadcasting have released guidelines for parents, teachers, and broadcasters to mitigate the risks associated with online gaming. The latter has directed private satellite television channels to ensure compliance with Advertising Standards Council of India (ASCI) guidelines, which require clear disclaimers on gaming advertisements about financial risks and potential addiction.
The Union Minister for Electronics and Information Technology, Railways, and Information & Broadcasting shared these developments during a recent session in the Lok Sabha. The regulatory overhaul demonstrates India’s commitment to fostering a safe and accountable online gaming environment, balancing innovation with consumer protection in an increasingly digitized economy.
