India’s online betting and gaming industry is undergoing significant legal transformations in 2025. With state governments enforcing stricter regulations and the central government reevaluating its stance, understanding these changes is crucial for both operators and players.

🏛️ State-Level Regulatory Developments

Tamil Nadu Sets a Precedent

In June 2025, the Madras High Court upheld Tamil Nadu’s law regulating online real-money games like rummy and poker. The legislation enforces:yogonet.com+4economictimes.indiatimes.com+4timesofindia.indiatimes.com+4

• Mandatory two-step Aadhaar verification for players
• Age restrictions and betting limits
• Time restrictions on gameplay
• Controls on advertisementstimesofindia.indiatimes.com+12economictimes.indiatimes.com+12timesofindia.indiatimes.com+12

The court emphasized the state’s authority to legislate in this domain, citing the need to protect public interest and fill a regulatory gap while balancing privacy concerns. lexology.com+2economictimes.indiatimes.com+2timesofindia.indiatimes.com+2

Karnataka and Maharashtra Draft New Laws

Karnataka is preparing legislation to regulate online gaming and betting, aiming to curb illegal platforms while allowing skill-based gaming under a controlled legal framework. iclg.com+3yogonet.com+3mondaq.com+3

Maharashtra is developing a comprehensive legal framework to regulate online gaming and combat cybercrime, focusing on preventing financial fraud and clarifying regulations in the expanding digital gaming sector. lexology.com

🏦 Central Government’s Position

The central government has taken a firm stance on online gaming taxation. In May 2025, the Directorate General of GST Intelligence informed the Supreme Court that online gaming platforms are engaged in activities equivalent to betting and gambling, making them subject to a 28% Goods and Services Tax (GST). economictimes.indiatimes.com

Additionally, the government is preparing to introduce new legislation aimed at regulating online gambling and betting platforms, seeking to curb fraudulent practices and support the legal gaming sector. hindustantimes.com+1yogonet.com+1

🚨 Crackdown on Illegal Platforms

Illegal online gambling platforms are proliferating in India, often targeting minors and vulnerable groups with aggressive incentives and rapid-fire betting. A report by CUTS International reveals that these platforms attract billions of visits annually, exploiting regulatory loopholes and bypassing consumer protection measures. m.economictimes.com+1brandequity.economictimes.indiatimes.com+1business-standard.com+3brandequity.economictimes.indiatimes.com+3agbrief.com+3

In response, the Tamil Nadu Online Gaming Authority (TNOGA) has issued notices to at least 25 online gaming companies for violating state regulations, prompting many firms to begin enforcing compliance measures such as prohibiting access during certain hours and implementing cash limits. timesofindia.indiatimes.com+1timesofindia.indiatimes.com+1

⚖️ The Skill vs. Chance Debate

The distinction between games of skill and games of chance remains central to the legal discourse. While the Supreme Court has recognized games like rummy and fantasy sports as games of skill, thereby exempting them from traditional gambling laws, this classification is not uniformly accepted across all states. en.wikipedia.org+2legalkart.com+2lexology.com+2en.wikipedia.org+2indiatoday.in+2lexology.com+2

🧭 Navigating the Evolving Legal Landscape

For players and operators:

• Stay Informed: Regularly check for updates on state and central regulations affecting online betting and gaming.
• Verify Legitimacy: Ensure platforms are compliant with local laws and have necessary licenses.
• Practice Responsible Gaming: Adhere to age restrictions, betting limits, and time constraints to promote safe gaming practices.economictimes.indiatimes.com+1timesofindia.indiatimes.com+1

🏁 Conclusion

India’s online betting and gaming legal landscape in 2025 is marked by increased regulation and enforcement at both state and central levels. As the industry continues to evolve, staying informed and compliant is essential for all stakeholders involved.