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A Crushing Blow to Gambling: India Puts an End to Online Money Gaming

01 Mar, 2026

Nick Davis

The Indian authorities have passed a bill that introduces a complete ban on online gambling with money bets. This decision came as a shock to the industry, whose turnover by 2025 was projected at $22 billion, and annual revenue already reached $3.5 billion. According to the latest statistics, about 450 million Indians left over $2.2 billion on gaming platforms every year. What was banned? The new regulations affect the most massive and popular segments of the market. The following persons fell under the complete ban:

Fantasy sports;
Poker;
Rummy (a popular card game in India);
Online lotteries.

Under the new law, financial institutions, including banks and payment processors, will be prohibited from processing any transactions related to the activities of gambling platforms. At the same time, esports disciplines and educational games that do not involve money bets will retain their legal status. Consequences for the economy and punishment for violators Representatives of the gambling business are sounding the alarm: in their opinion, the new law will cause tremendous damage to the country's economy. Analysts' forecasts are disappointing, India risks facing the following:

Loss of 200,000 jobs;
Closing of about 400 companies;
A shortfall of $2.2 billion in tax deductions.

For those who decide to ignore the new rules, severe sanctions are provided. Violators face not only an impressive fine of up to $ 120 thousand, but also real imprisonment for up to three years. Tax pressure on the industry Shortly before that, the so-called "sin tax" of 40% was introduced for the gambling industry. This additional fee is levied on goods and services that the state considers undesirable, including gambling and luxury goods. This decision came as a complete surprise to the market, as there had previously been active discussions about a possible reduction in the GST tax for this area from 28% to 18%. In addition, since 2023, the country has already had a 30% tax on any winnings, which further increases the financial burden on players. Exodus of international companies and lockdowns Back in 2023, the increase in the tax on gambling services to 28% caused a flurry of criticism from operators and investors. Companies reported a sharp drop in user activity, and investors warned of a slowdown in the growth of the entire industry. However, instead of looking for a compromise, the government only increased the pressure. The local regulator received expanded powers, including the right to block any iGaming sites caught in tax evasion. As a result, from the beginning of 2022 to mid-2025, more than 1,524 gambling resources were closed in India. The actions of the authorities provoked the consolidation of the market in the hands of several players, led to massive layoffs and a collapse in tax revenues. As a result, everyone lost: business, the state, and the players themselves. Instead of creating the conditions for growth and innovation, the Indian government is inhibiting the development of a promising industry with its own hands.

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