Is It Legal to Earn Money from Online Games in India? [Updated 2025 Guide]

Is It Legal to Earn Money from Online Games in India? [Updated 2025 Guide]  

Online gaming has become one of the fastest-growing sources of entertainment and income in India. With more people engaging in skill-based games for cash prizes, a common question arises: Is it legal to earn money from online games in India? 
Let’s break it down in simple terms, covering laws by state, rules around TDS (Tax Deducted at Source), and your rights as a player.

Understanding Online Gaming Law in India  

India does not have a single law for online gaming. Instead, each state decides its own rules. However, the Public Gambling Act of 1867, which serves as a central law, clearly distinguishes between games of skill and games of chance. 

What Is Legal and What Is Not?  

If the game is a skill game, it is legal to play for real money in most Indian states. Examples include rummy, chess, fantasy sports, and card games that require logic and calculation.  

On the other hand, games based purely on luck or chance are considered illegal under Indian law. Examples include roulette and slot machines.

Legal Status of Skill-Based Gaming Platforms in India  

Based on various High Court and Supreme Court rulings, playing skill games for money is not viewed as gambling. That’s why skill-based gaming platforms like Bazigar are completely legal in most parts of India.  

The Supreme Court has recognised that skill games, even when played for cash, are business activities protected under Article 19(1)(g) of the Constitution (Right to Profession). 

Real Money Gaming Rules in India by State (2025 Update)  

Here’s a quick overview of the legal status of real money gaming in different states:

Legality Status of states for Skill Games

✅ Legal - Maharashtra

✅ Legal - West Bengal

✅ Legal - Kerala

✅ Legal - Karnataka (after HC struck down ban in 2022)

✅ Legal - Tamil Nadu (new laws regulate but allow)

✅ Legal - Sikkim, Nagaland (with license only)

✅ Legal - All Other States (follow local rules)

❌ Not Allowed - Telangana (Banned by Telangana Gaming Act)

❌ Not Allowed - Andhra Pradesh (Banned by 2020 Amendment)

❌ Not Allowed - Assam (Ambiguity, added to restricted)

❌ Not Allowed - Odisha (Banned under State Laws)

Note: Platforms like Bazigar respect state-wise restrictions. You cannot register or play from banned states. 

Online Gaming and TDS Deduction in India (2025 Update)  

According to the Finance Act, 2023, new rules took effect on April 1, 2023, regarding TDS on online gaming winnings.

TDS Rule Summary:

30% TDS is deducted on net winnings at the time of withdrawal or at the end of the financial year.

At Bazigar, we handle TDS automatically. For more details, you can read about the TDS rules.

No basic exemption limit applies. Even ₹1 of net winnings is subject to TDS. 

User Rights on Legal Gaming Platforms  

When you play on a legal and regulated platform like Bazigar, you are safeguarded by your consumer rights and digital rights. Here’s what you should expect:  

- Data Privacy: Your personal and payment data is kept secure.  

- Fair Payouts: Winnings are credited transparently with TDS shown.  

- Support: Platforms must provide ways to address complaints.  

- Clarity: Terms and conditions, game rules, and wallet details are clearly shared with users. 

Final Thoughts:

Is It Safe and Legal to Play Real Money Games in India?  

Yes, real money skill games are legal and safe in most Indian states if you play on trusted platforms that follow all laws and tax rules.  

As India’s gaming industry grows, the government is focusing on responsible play, digital security, and financial transparency. Always ensure:  

- You play from a state where skill gaming is allowed.  

- The platform follows TDS rules and privacy standards.  

- You understand the game rules before you invest.  

Conclusion  

Whether you're playing to test your skills or to win big, always choose legal gaming platforms in India. Bazigar ensures full compliance with Indian gaming laws, fair gameplay, and secure transactions.  

Start playing with skill, not luck. Be a Bazigar!