India’s Fragmented Gambling Regulation Faces State-Level Reform Push Led by Karnataka

2025-07-01 08:43 INDUSTRY NEWS AND INSIGHTS

Experts from 4H Agency contributed a two-part analysis for iGaming Expert examining how India’s gambling sector is evolving. While outdated federal laws continue to govern most of the industry, states like Karnataka are driving modernisationthrough legal reform, responsible regulation, and tech-led compliance in real-money gaming.

Key Insights

• In 2025, Karnataka gambling legalisation introduced a whitelist licensing model for real-money gaming in Karnataka, with mandatory Aadhaar-based KYC, age checks, and tools for responsible gaming.

• A landmark 2022 High Court ruling in Karnataka affirmed the constitutional protection of games of skill, shaping the Indian skill games law landscape and unlocking regulatory potential.

• State-level innovation is pushing back against federal inertia. Maharashtra, Haryana, and others are adopting progressive state gambling laws in India, paving the way for broader Indian gambling market reform.

• Karnataka’s courts clarified the GST on online gaming in India, limiting taxation to platform commissions—a key win for local operators.

• Meanwhile, offshore gambling in India thrives under weak enforcement, using crypto and layered payments to bypass compliance, leaving domestic platforms at a disadvantage.

• Karnataka’s clear digital framework signals a new era for online gaming compliance in India, balancing economic development, consumer protection, and legal accountability.

Want to explore more?

📖 Read both parts of the analysis on iGaming Expert:

• Part 1 – India: Regional momentum on gambling stumped by federal inertia

• Part 2 – Karnataka paints clearest picture for gambling in India

Looking to navigate India’s complex gambling framework?

4H Agency provides tailored consulting on licensing, compliance, and strategic market entry. Contact us today via Email or Telegram to approach the Indian market with confidence.