In India, the legal status of sports betting is complicated due to a patchwork of laws and court interpretations. Games of skill, like fantasy sports and rummy, are generally protected under the law, while games of chance, like traditional betting, are largely prohibited. Online gambling operates in a legal grey zone, with some states banning it altogether and others recognizing games of skill.
Taxation on gambling in India is steep, with GST at 28% on the total amount paid by users and income tax at a flat 30% on winnings above Rs.10,000. Offshore winnings are also taxable for Indian residents. The government is tightening regulations to prevent money laundering and tax evasion in the unregulated gambling space.
The Ministry of Electronics and IT has introduced self-regulatory guidelines for online gaming, but the legalization and regulation of sports betting in India remains uncertain due to political sensitivity and concerns about addiction and match-fixing. Until a unified regulatory framework is established, individuals are advised to understand the laws in their state before engaging in any form of gambling.