Government Guidelines for Online Gaming in India

Online gaming is booming across India – from casual games like Ludo to full-scale tournaments with real money involved. With this growth, the Indian government has taken steps to regulate the industry, ensuring it remains safe, fair, and legally compliant for all users.

But what exactly are the rules? Who decides which games are legal? And what responsibilities do platforms have?

This blog explains the latest government guidelines for online gaming in India, especially for skill-based games like Ludo. Whether you’re a player, developer, or platform owner, staying informed helps you play safe and smart

Game of Skill vs Game of Chance

The government draws a clear line between two types of online games:

Games of Skill – Involve strategy, planning, and decision-making (e.g., Ludo, Chess, Rummy)
Games of Chance – Outcomes rely mostly on luck (e.g., Roulette, Dice games in casinos)

Most Indian states permit skill-based games, while games of chance often face restrictions or complete bans.

IT Rules 2021 & 2023 Amendments

Online gaming is governed under the Information Technology (IT) Rules, 2021, and updated further in 2023. Key highlights include:

KYC (Know Your Customer) is mandatory for all real-money players
Platforms must only host “permissible” online games – which are legal, non-addictive, and verified
Grievance redressal systems must be in place (a complaint officer must be assigned)
Age gating features should protect minors (under 18)

Self-Regulatory Bodies (SRBs)

To streamline compliance, the government has introduced Self-Regulatory Bodies (SRBs) for online gaming platforms. These SRBs:

Approve games that meet the legal definition of skill-based gaming
Monitor platforms for fairness, responsible gaming, and data security
Help the government decide whether a game is suitable for real-money operations

Platforms like RK Ludo comply with SRB protocols, ensuring their games are safe, fair, and lawful.

States with Gaming Restrictions

Despite central laws, some Indian states do not allow real-money gaming of any kind. These include:

Assam
Telangana
Andhra Pradesh
Odisha

It’s important to check your state’s gaming laws before participating in paid or cash-based games.

Responsible Gaming Guidelines

The government urges platforms to promote responsible gaming by:

Setting deposit and spending limits
Providing self-exclusion options for users
Offering time-out and break reminders
Monitoring addictive behavior and ensuring easy access to customer support

Such measures help make platforms safe for everyone, including casual players.

Advertising Rules by ASCI

The Advertising Standards Council of India (ASCI) sets strict rules for promoting online games:

Ads must not promise or mislead users with easy money claims
Every ad must display disclaimers like:
“This game involves financial risk and may be addictive. Play responsibly.”
Minors must not be the target audience
Misuse of celebrity endorsements is prohibited

Taxation Rules on Winnings

In 2023, the Indian government implemented a flat 30% TDS (Tax Deducted at Source) on online gaming winnings.

Tax applies to winnings above ₹100
PAN card details are mandatory for withdrawals
Platforms must deduct and report taxes directly to the Income Tax Department

This makes real-money gaming more transparent and accountable.

Conclusion

As online gaming becomes more widespread in India, the need for regulation is more important than ever. The government’s new guidelines are designed to protect users, prevent fraud, and encourage ethical practices.

Understanding the difference between games of skill and games of chance is crucial. Ludo, being a skill-based game, is legal in most states and can be played safely on licensed platforms. With proper KYC, spending limits, grievance support, and SRB compliance, platforms can ensure a better, safer experience for users.

As a user, always choose apps that are transparent about their rules, data security, and legal compliance. Before downloading any real-money game, check whether it is SRB-approved and legal in your state. Informed users make better decisions, both in gaming and in life.

FAQs

1. Is online Ludo legal in India?

Yes, online Ludo is generally considered a game of skill, which is legal in most Indian states. However, states like Assam, Andhra Pradesh, Odisha, and Telangana currently restrict real-money gaming, so it’s best to check your local laws.

2. What are the latest government rules for online gaming in India?

The Indian government, under the IT Rules 2021 (amended in 2023), mandates platforms to implement KYC, follow responsible gaming practices, and host only permissible games approved by a Self-Regulatory Body (SRB).

3. Do I have to pay tax on winnings from online games like Ludo?

Yes, as per Indian tax law, any winnings above ₹100 from online games are subject to a 30% TDS. PAN card verification is usually required before withdrawal.

4. How do I know if an online gaming app is safe and legal?

Safe gaming apps like RK Ludo follow government norms, including KYC, privacy policies, responsible gaming features, and SRB approvals. Always check the app’s legal and compliance section.

5. Can minors (under 18) play real-money online games?

No, real-money online games are restricted for minors. Platforms must use age-verification tools and parental controls to prevent access to underage users.