Gaming Regulations in India: What's the Future of Real-Money Apps?

Published Date : 31 MAR 2025

Imagine you tap on your smartphone, engage in a game, and walk away with real money. This is the allure of real money-earning apps in India. These games have completely surged in popularity. More than 442 million gamers have contributed to making India's online gaming sector thrive. Also, reports state the gaming industry of India will reach ₹231 billion (2025).

However, swift expansion presents hurdles. Gaming regulations in India remain erratic, with various states implementing different rules. Some welcome real money game apps, while others enforce stringent prohibitions. Compounding the issue, a 28% GST on deposits has sparked worries among users and operators alike.

Finding a middle ground between industry development and player protection is essential. An explicit regulatory framework could guarantee fair competition, safeguard users, and foster innovation. This will help create a robust real-money gaming ecosystem in India.

The Growth of Real Money Gaming in India

In recent years, real money apps have gained traction nationwide. This is not merely a passing fad. Instead, it is a phenomenon driven by several crucial elements:

- Smartphone Penetration

More Indians are embracing mobile gaming as budget smartphones become common. Your compact device has been modified into a gateway to real money game apps. They put forth amusement and the opportunity to earn.

- Digital Payments Revolution

The emergence of convenient digital payment options has rendered transactions on real money-earning apps simple and straightforward. The procedure is now more seamless, no matter if you are adding funds or cashing out your earnings.

- Cultural Affinity for Gaming

Gaming has been woven into India's cultural tapestry right from classic card games to contemporary e-sports. The introduction of real money-earning apps in India has converted this enthusiasm into a legitimate income source for numerous individuals.

At the forefront are multi-game platforms such as Ludo Empire. The platform puts forward Hand Cricket, online Teen Patti, Rummy, Callbreak, Snake and Ladder, Ludo, and various other skill-powered games. These real-money gaming apps deliver entertainment and play a pivotal in the economy by generating revenue, creating jobs, and attracting foreign investments.

Regulatory Landscape: The Current Scenario

However, with significant opportunity comes substantial responsibility. The swift expansion of real money apps has drawn the interest of regulators. This has resulted in a complicated and constantly changing legal environment.

At present, the regulation of real money-earning apps in India consists of the following laws:

• 1867 Public Gaming Act: The 1867 Public Gambling Act is a central law in India that bans visiting or operating public wagering houses, with penalties involving imprisonment and fines. The Act does not apply to skill-oriented games.
• State-Specific Regulations: Various states have their own perspectives on gaming regulations in India. For example, Sikkim and Nagaland have welcomed licensing for online games. Others, such as Telangana and Andhra Pradesh, have enacted stringent restrictions on every real money online gaming type. This includes skill-powered games.
• Role of MeitY: The Ministry of Electronics and Information Technology has intervened to establish particular regulations for allowable online real money games. It also addresses online gaming intermediaries. This initiative provides clarity and supervision to the gaming industry.

Taxation is another vital element. In 2023, a 28% Goods and Services Tax was imposed on every deposit at full face value in all real money online games.

Furthermore, recent judicial rulings have further influenced the landscape, with courts considering the difference between skill-powered well as chance-powered games. This distinction is impacting the legality of various real money-earning apps.

Future of Real Money Gaming Regulations in India

So, what is in store for real money-earning apps in India?

• Centralised Regulatory Framework: In April 2023, MeitY amended the 2021 Intermediary Guidelines and Digital Media Ethics Code. It introduced a co-regulatory framework in order to create a standardised approach for online real-money gaming. However, as of 2025, its implementation is in process with various interventions and considerations involved. This is particularly true when setting up SRBs (Self-Regulatory Bodies). While MeitY continues to develop a centralised system, individual states have enacted their own gaming laws. This has fuelled discussions on a unified national regulation. The framework is designed to oversee skill-powered games and label concerns related to wagering. However, a fully operational structure has yet to be finalised.
• Taxation Policies: The financial landscape for real money apps has also experienced substantial changes. The government modified GST regulations in August 2023. It levied a 28% tax on online gaming wagers. This significant tax rate has generated concerns within the industry regarding its potential influence on growth and user participation.
• State-Level Regulations: Despite central initiatives, state governments continue to assert their authority over wagering practices. For example, Telangana has enacted comprehensive bans on every real-money online gaming type. Conversely, others are considering regulations to manage gaming activities within their territories. This approach calls for a unified policy to address industry challenges effectively.

The Key Takeaway

The future of real money-earning apps in India is uncertain. Although the industry flourishes, regulatory intricacies persist in presenting difficulties. A cohesive legal framework could offer essential clarity. This guarantees that real-money gaming apps function ethically.

For gamers, this signifies a safer and more organised gaming experience. For enterprises, it provides a stable environment for expansion. However, flexibility is vital with the changing gaming regulations in India.

Will India adopt a balanced strategy that encourages innovation while shielding users? Only time will reveal the answer. Until then, real-money gaming remains a thrilling yet uncertain space of opportunities and challenges.

For more such information on gaming trends, refer to our insightful Fabzen blogs.