Supreme Court on Online Gaming

Supreme Court Clarifies Online Gaming Legality and Taxation: A Landmark Update for 2025

  • 10 Nov 2025
  • KP Law & Legal Associate

📌 Background

The legality of online gaming in India has been debated for years, especially regarding real-money participation.

📌 Supreme Court Position

The Supreme Court has held that:

  • Skill-based online gaming is not gambling

  • Platforms are required to comply with 28% GST on deposits

📌 Impact on Industry

  • Increased compliance and taxation burden

  • Clear legal standing for business operations

  • Protection for players on certified platforms

Blockquote: “Skill-based gaming is a legitimate digital business model — but strict regulation and tax compliance is mandatory.”

📌 Compliance Checklist for Gaming Companies

  • GST registration and regular filing

  • User KYC and digital fraud monitoring

  • Data privacy compliance


❓ FAQs

Q1: Are online rummy and fantasy sports legal now?
Yes, if they are skill-based and regulated.

Q2: Is 28% GST charged on winnings?
No, it applies on deposits.

Q3: Can states ban online gaming?
Yes, individual state restrictions may still apply.

Q4: Is KYC compulsory for players?
Yes, as per safety and anti-fraud regulations.

Q5: Can minors participate?
No, participation below 18 years is prohibited.