India’s Online Gaming Ban and 28% GST, Explained

India banned online real-money games in 2025, when Parliament passed the Promotion and Regulation of Online Gaming Act (PROGA). The law was signed on 22 August 2025, and the rules were notified in April 2026. It covers casino games, rummy, poker, sports betting, and paid fantasy sports contests.

The Supreme Court also upheld a 28% GST on online gaming platforms in May 2026, and the authorities are now pursuing site operators for more than ₹1,00,000 crore in back taxes.

In this article, we’ve explained how the online gaming ban and the 28% GST ruling impact everyday Indian players. You’ll discover why many Indian players have now turned to offshore crypto gambling sites following the ban. We’ll also break down your personal tax liabilities if you earn a profit from online gambling in India.

Key Takeaways

• PROGA bans all online real-money games nationwide, although free-to-enter fantasy sports contests and esports remain legal.
• Penalties for offering real-money games can include fines of up to ₹1 crore and up to 3 years’ imprisonment.
• PROGA targets Indian companies running gambling sites, their payment providers, and marketers of gambling brands, not players.
• The Supreme Court upheld a retrospective 28% GST on online gaming platforms in May 2026.
• GST applies to the full value staked, not just the site’s commission, and this is separate from the online gaming ban.
• The online gaming ban remains in force as of mid-2026, although the Supreme Court is scheduled to hear a legal challenge in January 2027.
• Winnings from any gambling activity are still taxed at a flat 30%, whether the site is based in India or overseas.

What the Online Gaming Act Actually Bans

The Promotion and Regulation of Online Gaming Act (PROGA) bans all “online real-money games.” The law covers games of chance like slots, Teen Patti, Andar Bahar, and roulette. PROGA also targets games of skill, such as poker and paid fantasy sports contests.

Free-to-play fantasy sports contests are still legal, provided they don’t offer cash prizes and they comply with PROGA.

PROGA targets three groups:

• Operators: Indian companies are now banned from operating sites offering online real-money games.
• Payment providers: Indian banks and payment providers are now banned from processing gambling transactions.
• Marketers: It’s illegal for Indians to market online gambling brands. This applies to publishers and influencers.

Anyone who offers or facilitates real-money games faces a fine of up to ₹1 crore and up to three years’ imprisonment. The law doesn’t target players, so Indians aren’t currently being prosecuted for playing at overseas crypto casinos and sportsbooks. However, the Indian government has also ordered internet service providers to block access to thousands of offshore gambling sites.

Timeline: From 28% GST to a Nationwide Ban

Here’s a timeline of recent regulatory developments in India’s online gaming market.

The 28% GST, Explained

The 28% GST applies to the face value of the amount staked or the entry amount paid by the player, not just the site’s margin or commission. In May 2026, the Supreme Court ruled that a game becomes “betting” for GST purposes as soon as money is staked on an uncertain outcome. GST applies regardless of whether skill or chance determines the result, eliminating the skill/chance defense that operators had previously relied on.

The ruling was retrospective, so the authorities are now pursuing more than ₹1,00,000 crore in back taxes from operators of Indian gambling sites. One company received a ₹21,000 crore tax demand.

The GST is levied on site operators, so it’s separate from an individual player’s income tax liability. You’ll need to pay a flat 30% tax on any net winnings you earn, regardless of the site’s location or legality. This personal gambling tax is required under Section 194BA of the Indian Income Tax Act.

Is the Ban Still Being Challenged?

Gaming companies have challenged the constitutional validity of India’s online real-money gaming ban. The Supreme Court has deferred the main constitutional hearing to a three-judge bench, which is scheduled for January 2027.

In June 2026, the Supreme Court ruled on a separate, narrower question. It confirmed that individual Indian states retain their own constitutional power to regulate, restrict, or prohibit online gaming within their borders. That means state-level prohibitions in Telangana, Andhra Pradesh, and Tamil Nadu remain fully active. Some Indian gaming companies are defying PROGA while the challenge remains ongoing, but they’re avoiding those states.

In the meantime, Indian authorities continue to block access to offshore gambling sites. As of March 2026, they had instructed ISPs to block users from visiting more than 8,000 overseas betting sites.

What This Means If You Already Play

Indians are increasingly switching to offshore gambling sites. A CUTS International survey found that offshore play in Delhi-NCR spiked after PROGA came into force. The share of players rose from 68.3% pre-ban to 82% post-ban, with daily offshore play jumping from roughly 3% to over 40%.

Survey data points to a couple of patterns among Indian players:

• They use crypto for deposits and withdrawals, rather than sending rupees via UPI, Indian banks, or digital wallet providers. PROGA has banned Indian payment providers from processing gambling transactions. BTC and ETH are popular, but players increasingly favor stablecoins like USDT.
• Players tend to use VPNs to bypass the Indian government’s geo-blocks on gambling sites. Just bear in mind that VPN usage doesn’t confer legality.

These sites often welcome Indian players, but they don’t fall under the jurisdiction of Indian authorities. That means you can’t access local dispute resolution services, and Indian responsible gambling programs don’t cover them.

The 30% flat tax on net gambling winnings also applies regardless of where or how you play the game. Moving to an offshore crypto casino doesn’t remove that personal tax obligation.

Next Steps

Interested in learning more about casino games or sports betting? Check out these resources:

• Best Crypto Casinos for India – See where Indian players are going for crypto casino play post-ban.
• Crypto Sports Betting in India — Our pick of crypto sports betting platforms used by Indian bettors.
• Crypto Gambling Legality — The global picture on crypto casino legality, beyond India.
• Gambling Licenses Explained – What a gambling license actually means, for readers comparing offshore options.

FAQs

1. 01.

   Is online gaming banned in India?

   

   Yes, Indian companies have been banned from operating sites offering real-money online games after the government passed PROGA in 2025. The law targets companies rather than individual players. PROGA covers online casino games and sports bets, but free-to-enter fantasy sports contests remain legal.

2. 02.

   Does the ban affect fantasy sports apps?

   

   Yes, India’s online gaming ban covers all paid-entry fantasy sports contests that offer cash prizes. Free-to-play fantasy sports contests are still legal. Data shows that many Indian sports fans have turned to overseas betting sites after paid fantasy sports contests were banned.

3. 03.

   What is the 28% GST on online gaming?

   

   The 28% GST on online gaming is a tax that site operators must pay on the overall money staked, not just their commission. The Supreme Court upheld India’s 28% tax on real-money online games on 27 May 2026. Indian authorities are now pursuing more than ₹1,00,000 crore in back taxes from gaming companies for the years before the ban was implemented.

4. 04.

   Is the 28% GST the same as the real-money gaming ban?

   

   No, the 28% GST isn’t the same as the real-money gaming ban. The GST is a tax ruling on platform revenue, whereas the ban is a separate prohibition on Indian companies offering real-money online games. Companies that previously offered those games are now facing demands to pay back taxes on their past revenues.

5. 05.

   Can Indian players still access offshore crypto casinos?

   

   Yes, offshore crypto casinos are still accessible to Indian players. PROGA targets gambling site operators, rather than players. Visits to offshore gambling sites have risen sharply in India since the ban came into force, but they sit in a legal grey area. Offshore sites don’t fall under the jurisdiction of Indian authorities, so you can’t complain to the local dispute resolution services if something goes wrong.

6. 06.

   Do I still have to pay tax on gambling winnings after the ban?

   

   Yes, the flat 30% tax on gambling winnings still applies in India, regardless of where the site is based or whether it’s legal. If you earn a profit at an offshore crypto casino, sports betting site, or poker room, your winnings will be taxed. Consult a tax professional for advice on your individual circumstances.