India is one of the largest and fastest-growing markets for online gambling, with millions of users actively engaging in casino games, poker, rummy, and sports betting. Yet the regulatory environment is fragmented, often misunderstood, and still evolving. For entrepreneurs and investors looking to launch an online casino that targets Indian users, understanding the licensing framework is not only essential for legal compliance but also for building credibility, attracting payment providers, and ensuring long-term sustainability.
India does not have a centralized law specifically governing online casinos across the entire country. Instead, gambling regulation is largely managed at the state level. While some states allow games of skill and certain forms of online betting, others enforce complete prohibitions. This creates a unique challenge for anyone looking to obtain an online casino license within the Indian jurisdiction or operate legally while targeting Indian players from abroad.
🇮🇳 Legal Landscape of Online Gambling in India
To navigate licensing in India, one must first understand the basic structure of gambling laws. The Public Gambling Act of 1867 is the primary federal law governing gambling, but it predates online activity and mainly applies to physical gambling establishments. The act makes operating or visiting a public gambling house illegal, yet it does not mention online casinos.
Because gambling is a state subject under the Indian Constitution, each state has the authority to regulate or prohibit gambling within its boundaries. Some states like Goa, Sikkim, and Nagaland have developed regulatory frameworks for certain types of gambling, including online skill games and lotteries.
The central government has not yet issued a uniform law to regulate online gambling, but foreign operators targeting Indian users are expected to comply with the Information Technology Act of 2000 and local tax regulations, particularly after the introduction of GST (Goods and Services Tax) on gaming and betting services.
🧠Licensing Options for Online Casinos in India
Currently, India does not offer a federal online casino license for nationwide operation. However, there are still viable routes for operating legally and targeting Indian players, both domestically and internationally. The three main paths include:
Sikkim Online Gaming License
Sikkim was the first state in India to issue licenses for online gaming. Under the Sikkim Online Gaming (Regulation) Act, 2008, the state government allows online gaming operations within its territory, including sports betting and casino games, although the scope of this license is relatively limited.
Nagaland License for Skill Games
The Nagaland Prohibition of Gambling and Promotion and Regulation of Online Games of Skill Act, 2016, enables operators to legally offer online skill games such as poker, rummy, fantasy sports, and bridge. This license does not cover games of chance, meaning traditional online casino slots or roulette games fall outside its purview.
Foreign Licenses with Indian Targeting
Given the ambiguity of Indian law and the lack of a central licensing body, many online casinos operate from abroad under international licenses such as:
| Licensing Jurisdiction | Licensing Body | Common Use |
|---|---|---|
| Curaçao | Curaçao eGaming | Low-cost, fast setup, common for startups targeting India |
| Malta | Malta Gaming Authority (MGA) | EU-respected, ideal for long-term scalability and investor confidence |
| Isle of Man | Gambling Supervision Commission | Reputable and tax-efficient for larger operations |
| Gibraltar | Gibraltar Licensing Authority | Well-suited for UK and Commonwealth markets |
| Kahnawake (Canada) | Kahnawake Gaming Commission | Popular among crypto and international hybrid models |
These international licenses enable platforms to legally operate outside India while accepting Indian users, provided that the sites comply with payment gateway regulations, offer support for Indian rupees (INR), and maintain transparent tax declarations in compliance with the GST framework.
📋 Step-by-Step Process to Acquire a License and Launch Operations
Whether you aim to register locally in Sikkim/Nagaland or set up operations offshore, the process of licensing and launching an online casino targeting India involves several critical stages. These include establishing a business entity, applying for a license, building technical infrastructure, integrating payment systems, ensuring regulatory compliance, and launching the platform with localized marketing.
The foundational step is deciding your legal base. If you choose an international license, you must register a legal entity in the jurisdiction (e.g., Curaçao or Malta), often requiring a local representative and a business office address.
The next stage is the application, which requires:
| Document Type | Required Information |
|---|---|
| Corporate Documentation | Company incorporation certificate, shareholder structure, business plan |
| Financial Disclosures | Source of funds, banking references, operational budgets |
| Technical Information | Game fairness logic, RNG certification, backend architecture |
| Compliance Policies | AML, KYC procedures, responsible gambling policies |
| Personal Documents | Passports, proof of residence, CVs of directors and key staff |
After submission, the licensing authority conducts due diligence, background checks, and compliance assessments. This phase can take from a few weeks (in Curaçao) to several months (in Malta or Isle of Man).
Simultaneously, developers and tech teams must finalize the game platform, obtain RNG certification from approved testing labs such as GLI or eCOGRA, and ensure integration with casino content providers, wallet systems, and secure payment gateways like Razorpay, Paytm, or UPI-compatible solutions for the Indian market.
Once the license is approved and infrastructure is ready, your site must publish clear terms and policies, allow players to set deposit limits, offer responsible gaming tools, and prepare for continuous reporting to the licensing body.
💳 Payments and Currency Handling for Indian Users
Handling payments in India is one of the most sensitive and strategically important elements of launching an online casino. Due to banking restrictions and the Foreign Exchange Management Act (FEMA), many banks decline transactions related to gambling.
To overcome this, most casinos targeting Indian users offer the following:
| Payment Method | Suitability | Processing Time | Popularity |
|---|---|---|---|
| UPI | High | Instant | Very High |
| NetBanking | Moderate | 1–3 hours | High |
| Cryptocurrency | High | Instant | Growing |
| eWallets (Skrill, Neteller) | High | Instant | High |
| Debit/Credit Cards | Low–Moderate | 1–2 days | Declining |
Casinos must integrate INR wallets, offer fast withdrawal systems, and clarify their policies for identity verification and transaction tracking. Ensuring secure, tax-compliant, and easy payment flow is crucial for both operational longevity and player trust.
📜 Taxation and Compliance in the Indian Context
As of 2023, India has implemented 28% GST on online gaming platforms involving betting and gambling. Platforms operating offshore but targeting Indian users are still expected to deduct and report tax liabilities, although enforcement is still catching up. Failure to comply can lead to bans or payment blockages.
Casino operators must stay informed about:
- Tax Deducted at Source (TDS) on player winnings
- GST registration requirements
- Local representation or invoicing obligations
- Legal developments in gambling laws across Indian states
To manage this, many platforms employ local legal advisors, tax consultants, and regulatory specialists to ensure full alignment with the evolving Indian framework.
📈 Scaling the Business and Staying Compliant
Once your online casino is licensed and operating, compliance becomes a continuous process. This includes routine audits, software updates, financial reporting, AML checks, customer support systems, and bonus policy reviews. Reputable casinos also invest in localization—offering games in Hindi, multilingual customer service, India-specific promotions, and support for culturally preferred games such as Teen Patti or Andar Bahar.
Continuous market analysis, responsible gaming programs, and tech upgrades are essential to stand out in the competitive Indian market while maintaining regulatory integrity.
✅ Key Considerations for Success
Launching an online casino with Indian targeting requires strategic clarity, legal foresight, and operational discipline. Choosing the right license—whether from Sikkim, Nagaland, or an international regulator—is the first major decision. Building a reliable, locally optimized infrastructure, integrating INR-friendly payment methods, and complying with Indian tax obligations are critical for trust and scalability.
With proper licensing, clear compliance, and a commitment to localization, operators can tap into one of the most dynamic and lucrative online casino markets in the world. India’s complex regulatory system may pose challenges, but with the right structure and expert support, building a legal and successful casino brand for Indian players is not only possible—it’s a powerful long-term opportunity.