Last verified: 16 October 2026. This page is information about crypto betting in India and about the law that applies to it. It is not legal advice and it is not a recommendation to use any betting service. Laws and court cases on this subject are changing, so read the "Sources" list at the bottom and check the current position yourself.
Crypto is often presented as a way around the problems of betting in India: no bank to block the payment, no ID needed, near-instant transfers. Every one of those claims hides a trap. This page explains how crypto funding works in betting, the real risks (volatility, scams and irreversibility), India's crypto tax rules and why using crypto does not change the legal position of the service you are paying.
How crypto funding works
A user buys a coin on an exchange, sends it to a deposit address given by the site and the site credits a balance, usually in its own accounting unit. Withdrawals reverse that. The attractions are speed and the avoidance of bank or card declines; the costs are network fees, exchange fees and the spread between buying and selling prices. Stablecoins such as USDT aim to hold a fixed value but are not risk-free, because a stablecoin can lose its peg or become unavailable on an exchange.
The risks that matter
- Irreversibility. A crypto transfer to a wrong or fraudulent address cannot be recalled. There is no chargeback.
- Volatility. A balance held in a volatile coin can lose a large part of its value while you wait for a withdrawal.
- Fake deposit addresses. Scam sites and impersonators send you addresses that belong to them. Always verify an address through the official site, and treat chat-based "agents" with extreme suspicion.
- No recourse. Anonymity cuts both ways: if a site freezes your balance, there is rarely a regulator or a bank that can help.
- Phishing and wallet-drainers. Connecting a wallet to an unknown site can authorise it to move your funds.
Crypto tax in India
India taxes virtual digital assets heavily. Under the Income-tax Act, 1961, commentary from Mondaq and CryptoSlate describes a flat 30 percent tax (plus cess) on income from transferring crypto assets under section 115BBH, with no deduction except the cost of acquisition, no set-off of losses against other income, and a 1 percent tax deducted at source on transfers under section 194S. CryptoSlate reports that the Income-tax Act, 2025, which applies from 1 April 2026, carries the regime forward under renumbered sections; check the current text or a tax adviser, because the section mapping and thresholds may differ in the new Act. The key point for readers: the tax rules apply to crypto transactions regardless of what you use the crypto for, and a loss on a crypto transfer cannot be used to reduce tax on gains elsewhere.
Crypto and the law on betting
Under the Promotion and Regulation of Online Gaming Act, 2025, an online money game is one where a user pays money or other stakes, which the PRS summary says include credits, coins and tokens equivalent or convertible to money. A crypto deposit is therefore a stake, and funding a bet with cryptocurrency does not take it outside the Act. The Act also bars facilitating financial transactions for such games, which is why exchanges and payment services have reason to distance themselves from betting sites. Using crypto does not make an operator lawful in India, and it removes the few protections that traditional payment channels provide.
The law: online money games are now prohibited
The legal position changed fundamentally in 2025 and 2026. The key points, as reported by the sources listed below, are these.
- A national law. The Promotion and Regulation of Online Gaming Act, 2025 was passed by Parliament in the week of 20 to 21 August 2025 and received presidential assent on 22 August 2025. It prohibits online money games.
- The definition is broad. According to PRS Legislative Research's summary of the bill, an online money game is an online game in which a user pays money or other stakes in the expectation of receiving money or other enrichment, irrespective of whether the game is based on skill, chance or both. Credits, coins and tokens that are equivalent or convertible to money count as stakes. In our reading, an online wager on an online bet funded with crypto fits that description, but we are not lawyers and the Act's application to individual products is a legal question.
- Who is targeted. The prohibitions are aimed at offering or aiding such games, advertising them, and facilitating financial transactions for them. PRS reports penalties of up to three years' imprisonment and a fine of up to one crore rupees for offering them, and up to two years and a fine of up to 50 lakh rupees for advertising them. Law-firm commentary reported by Mondaq (Khaitan & Co) states that the Act does not penalise players who participate. That is a statement about the Act's penalty provisions, not an assurance that playing is safe: money can be lost, accounts can be frozen, and offshore sites have no obligation to pay you.
- Blocking and enforcement. The central government can block access to online money gaming services, and the bill gave authorised officers powers of search and arrest without warrant for the offences of offering and of facilitating financial transactions, which it described as cognisable and non-bailable.
- The rules. MediaNama reports that the Promotion and Regulation of Online Gaming Rules, 2026 were notified on 22 April 2026 and apply from 1 May 2026. They set up an interministerial Online Gaming Authority and a process to determine whether a particular game counts as an online money game.
- Court challenges. The Act is being challenged in the Supreme Court. The Supreme Court Observer tracks the case; at the time of writing we found no ruling striking the Act down. The final outcome is uncertain.
Two further points matter. First, e-sports and "social" games with no stakes are treated differently from money games under the Act, so the law does not prohibit watching or following crypto betting online. Second, the Act is about online services. Betting that is offline falls under state laws, which differ.
State laws and offline betting
Under India's constitution, betting and gambling are a state subject, so the rules differ by state. The Public Gambling Act, 1867 is an old central law that most states adopted or replaced with their own. Commentary from iPleaders and others describes the general picture: most states prohibit gambling, with limited exceptions such as lotteries and betting on horse racing, and a few places (Goa, Sikkim and Daman) license casinos under their own laws. Sikkim has also been described as having permitted licensed online sports betting within the state under older rules. Whether that survives the national Act is exactly the kind of question the court cases and the Authority will answer, so do not assume an older state permission still protects an online service today.
The practical point for a crypto user: a state licence for a casino or a racing track does not make an online wager on an online bet funded with crypto lawful, and an operator holding a licence from another country does not change Indian law for a user in India.
Advertising, payments and what has stopped
Because advertising of online money games is itself an offence under the Act, you should expect fewer open promotions around crypto betting, and you should be sceptical of any that remain. Banks and payment providers are also barred from facilitating transactions for such services. In practice this means deposits to betting sites may fail, and the sites that still take deposits through informal channels, personal UPI handles or crypto exchanges are the ones most likely to be fraudulent or to disappear with your balance.
Safety: what to watch for now
- Fake betting and "fantasy" sites. Copycat websites and messaging-app agents promise guaranteed wins or "fixed match" tips. Fixed-match tips are a classic scam: if a tip were real, nobody would sell it.
- Informal payments. Never send money to a personal account to "top up" a betting wallet. If the balance is later frozen, there is no one to complain to.
- Personal data and OTPs. Never share an OTP, card details or KYC documents with a site or agent you cannot verify.
- Reporting. India's national cybercrime helpline is 1930, and complaints can be filed at cybercrime.gov.in.
Responsible gambling
If betting is causing you stress, debt or problems at home, talk to someone. In India, Tele-MANAS (14416) is the government's free mental-health helpline. Setting a time and money limit before you watch a match, and treating any money you have already spent as gone, are simple ways to stay in control. If you are under the age of majority you must not take part in any form of betting.
Understanding crypto without gambling with it
If you are interested in crypto, you can learn about wallets, exchanges and blockchains without any link to betting. Keep any exposure small, use regulated exchanges and secure your accounts with strong authentication.
Why speed is not safety
An instant deposit and an instant withdrawal are conveniences, not signs of a trustworthy operator. Scam sites often pay small withdrawals quickly to build confidence before refusing a large one.
Sources
We last checked these on 16 October 2026. Several are commentary rather than the gazette text of the law, and the legal position may have changed since.