In South Asia, gambling laws and attitudes vary widely—some countries permit the activity, while others view it as socially unacceptable. However, India presents one of the clearest examples where the divide remains murky.
You see, gambling and betting in the country are regulated mainly under the Public Gambling Act of 1867, a law introduced during British rule that bans the operation and use of physical gambling establishments. However, the law is increasingly viewed as outdated, particularly given the rise of digital platforms. It leaves many aspects—especially those related to online gambling and skill-based games—open to interpretation.
Adding to the complexity, gambling is a state subject under Indian law, allowing individual states to determine their own regulatory approach. While states such as Goa, Sikkim, and Daman have legalised certain forms of casino gambling, most others continue to enforce strict bans.
Games of skill, like rummy and horse racing, are generally permitted, whereas games of chance remain restricted. Online betting falls into a legal grey zone, with some states even banning access to such platforms entirely.
Industry aligns to talk
As India’s digital betting and gaming sector continues to grow, there is increasing demand for a consistent national regulatory framework. A recent report by Vixio notes that several major trade bodies representing real-money skill gaming, fantasy sports, and esports have joined forces in a coordinated effort.
This marks a notable shift after a period of legal disputes with state governments and the central government stepping back from its earlier support for self-regulation. Initial signs of big reforms are emerging, driven by stronger industry cooperation and regulatory pressure. In February 2025, several industry leaders inked a confidential Memorandum of Understanding with the Advertising Standards Council of India (ASCI).
The agreement was aimed at addressing illegal advertising, particularly by offshore betting platforms and unlicensed online casinos. It focuses on monitoring and reporting violations in coordination with government authorities and law enforcement.
MoU inked to curb illegal ads
A core objective of the MoU is to improve compliance standards among legal operators and curb the visibility of unregulated platforms. For years, Indian celebrities and cricket stars have openly endorsed betting sites and online casinos with minimal repercussions.
In some cases, their images and videos have been used without consent to promote illegal platforms. Despite repeated calls from state governments to crack down on these activities, ads for unauthorised gambling platforms continued to dominate billboards, social media, television, and even sports broadcasts, effectively normalising them in the public eye.
That period of tolerance now appears to be ending. Authorities are beginning to pursue illegal online gambling firms and their promotional networks actively. Industry bodies and regulatory agencies increasingly see this as a vital first step toward cleansing the sector and preparing the ground for a more accountable, legal framework.
States, courts go their way
A significant transition is occurring at the state level. A number of Indian states are moving to formally recognise the legitimacy of online skill-based games, including Karnataka and Maharashtra. The Supreme Court of India’s decision, which upheld the distinction between games of skill and games of chance, is consistent with this.
To improve consumer protection and provide legal clarity, states are creating regulatory frameworks. The move could help reduce the influence of illegal gambling sites by giving skill-based gaming a legitimate status. The endgame is to create a more open and safe environment for gamers while encouraging responsible expansion of the digital gaming market in India.
A view from the top
These developments do show some progress is being made toward greater transparency and regulation. But can we expect a foolproof solution and widespread acceptance of gambling and gaming-related activities in the near future?
We at SiGMA World spoke briefly with Priya Ahlawat, the founder of Jumping Play, to learn more about this. She discussed her thoughts on industry cooperation, regulatory changes, and the future of legal gaming platforms.
SiGMA World: What do you think about the recent collaboration between gaming groups and the Advertising Standards Council of India (ASCI)? Is it actually helping clean up how online skill games are advertised?
Priya Ahlawat, Founder, Jumping Play: “Yes, I believe this collaboration is a significant and positive step forward. The partnership between gaming groups and ASCI brings more integrity to the way online skill-based games are promoted, but also helps safeguard the ecosystem from misleading or unlawful advertising practices. It sends a clear message that the industry is committed to responsible growth and self-regulation.”
She added, “This alignment with ASCI is not just about compliance—it’s about building long-term trust with stakeholders, be it players, operators and even promoters.”
SiGMA World: The central government is going hard on illegal gambling sites—blocking websites, freezing funds, and making arrests. How are legitimate platforms responding to these measures?
Priya Ahlawat: “While the government’s recent actions may appear stringent, I believe the intent is not to stifle legitimate businesses but rather to bring much-needed clarity and control to the broader online gaming and gambling space. Establishing clear rules and cracking down on illegal operators is a necessary step to protect consumers and ensure a more trustworthy ecosystem.”
She continued, “Most responsible gaming platforms, in my view, welcome this move. They recognise that regulation, when thoughtfully implemented, can help separate credible businesses from unlawful ones. Instead of harming the sector, such enforcement can contribute to a safer, more sustainable environment for both players and providers. As long as the dialogue between policymakers and industry stakeholders remains open and constructive, I’m confident the outcome will support compliant, skill-based platforms while discouraging exploitative practices.”
SiGMA World: There’s increasing talk about bringing online gaming under anti-money laundering (AML) rules. Do you see this as a challenge or an opportunity to build greater trust?
Priya Ahlawat: “Introducing AML regulations is a step in the right direction. Rather than viewing it as a hurdle, we should see it as a meaningful step toward enhancing transparency and accountability, both of which are essential for the industry’s long-term credibility.”
“When implemented properly, regulatory clarity not only protects users but also gives legitimate platforms more confidence to operate,” she concluded.
All in all, these events signal a push to reform India’s gaming sector and build long-term credibility. While momentum is clear, the outcome stays uncertain. Whether this progress leads to lasting change will depend on sustained cooperation between industry, regulators, and lawmakers—and a bit of patience from all sides.
