India’s online gaming and gambling sector is at a critical crossroads as the Supreme Court prepares to deliver a pivotal ruling. Central to the case is the distinction between games of skill and games of chance, a classification that will determine how these activities are taxed under the Goods and Services Tax (GST) framework. The outcome is expected to have a major impact on the legal and financial structure of the industry, affecting both large operators and millions of individual players nationwide.
This decision carries particular importance for casual gamers, especially for players who enjoy playing online slots with no deposit free spins, which are offered on a daily basis on BonusBunny.org. The ruling will help define the rules of engagement for online gaming in India for years to come.
Moves afoot for India’s Skyrocketing Gambling Industry
If you go back just ten years or so, India’s gambling market was very limited, with only lotteries and horse racing among the regulated industries. Everything else related to gambling was going on in back alleys, undercover gambling dens, and shady circles, with introductions only by a friend of a friend. You’ll have to remember that during these times, too, less than 20% of the population even had internet access, and smartphones were both rare and revered.
Fast forward to 2025, and around 70% of the population now has internet, and more than 50% of the population with smartphone access. Betting, which was once a purely in-person activity, now exists as an easy, freely available activity to engage in online and on smartphones.
Back in 2015, India’s Supreme Court ruled that playing skill games for stakes was not gambling, in a ruling in particular over skill games versus chance games. Now, the Supreme Court again has these types of games back under the microscope to see if they do, in fact, classify them as gambling.
Since the 5th of May, a hearing into online gaming has been before the Supreme Court, in trying to determine how to classify online gaming, fantasy sports, and casinos. This is a particularly important case as it will determine whether the companies providing these services will need to comply with the GST.
The case is before the court from the government, who claim that regardless of whether a game is skill or chance-based, if a player enters financial stakes with the hopes of winning, then that game should be classified as gambling – and thus be liable for GST.
A New Market Causing a Ruckus
The Indian gambling market has been growing significantly since 2022, when online gaming became more fixed, regulated, and started to mature. As we’re now only a short few years into the market’s progress, there will, of course, be new issues, concerns, and laws that will come up.
This new case will have some companies shaking, as India has some of the steepest GST taxes for online gaming, horse racing, and casinos, currently standing at 28%. With almost a third of revenues being claimed by the government in these industries, it can be difficult to turn a good profit while complying with strict rules and also offering great services for bettors.
According to research, the Indian gambling market hit revenues of over $5B USD in 2024, with a growth of over $500M over the previous year. This makes the market a juicy opportunity for companies looking to operate in the space. For providers who’ve managed to escape the GST through their types of games offered, the attraction has been even juicier.
However, this new case with the Supreme Court is likely to set a precedent, as India is projected to follow the lead of other countries that look at both games of some skill and games of chance, both falling under the gambling banner.
While it’s often the case that games involving skill as considered differently from games of pure chance, there can be lines drawn that change the amount taxed, how advertising is carried out, and how and where games are offered.
The Future is Bright
Regardless of the outcome in the Supreme Court, the future of gambling activities in India looks bright for operators and those who like placing a bet or two. Thanks to a growing regulated market, operators can expect to gain more customers, and players can expect better, safer choices, placing trust in the services that they’ll be using.
While we’ll wait for the outcome of the case patiently, you can expect to see and hear plenty more movements in the space, both in terms of laws and regulators, as well as new Indian gambling companies taking advantage of the blossoming market. If you’re interested in following the story, make sure to watch this space for more of the latest news, fresh out of India.
*The opinions expressed in this article are purely those of the author and do not necessarily reflect the views of TFI Media. The content should be taken as the sole perspective of the writer.
