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Betting with Bitcoin in India: Is it Legal & Safe?

By Tolu Shotade

24 Oct 2025

Tolu Shotade 24 Oct 2025

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Bitcoin betting in India lacks specific federal laws; state regulations are crucial.
Games of skill generally legal, games of chance prohibited; fragmented legal landscape.
Offshore Bitcoin betting popular but risky due to potential legal issues.

Bitcoin india

Betting with Bitcoin occupies a grey area as the laws surrounding overall gambling in India are complex and fragmented. There is no explicit federal law specifically addressing gambling, leading to a landscape influenced by various existing laws and state-level regulations.

We will provide a detailed breakdown of the legality of betting with Bitcoin in India, offering an insight into the potential risks and also the future outlook.

Top Bitcoin Betting Sites Available to Players in India

Before we delve into all the details around betting with Bitcoin, it helps to know the global operators that are available to players in India, though not regulated in the country. Below is a list of some of the more prominent platforms:

Is Betting With Bitcoin Legal in India?

Yes, Bitcoin betting is legal in India. There are no explicit federal laws legalizing or prohibiting crypto betting, with the regulation of gambling subject to state-level legislations in the country.

Legal Overview of Gambling in India

India runs a similar system to the USA as there are no specific federal laws allowing or prohibiting crypto betting as it is influenced by state-level regulations. This means each of India's 28 states has the authority to enact its own laws regarding gambling and betting.

As a result of this there is a fragmented approach, with some states permitting certain forms of gambling while most of the others lean towards prohibition. As at the time of writing, only four states and one union territory have legalized gambling, with land-based casinos as online betting still occupies a gray area.

The fundamental distinction between "games of skill" (generally permissible) and "games of chance" (generally prohibited) is central to online gambling legality in India. Even in states where online gaming is permitted, the specific types of games allowed often hinge on this distinction.

Game of Skill vs Game of Chance

The distinction between a "game of skill" and a "game of chance" is a fundamental part of gambling regulations in India, as it determines the legality of a particular activity. While games of chance are largely prohibited and fall under gambling laws, games of skill are generally exempted.

Game of Skill

This is a game where the outcome is predominantly determined by a player's ability, training, attention, experience and strategy, rather than by luck or randomness. Skill generally outweighs chance in determining the outcome of this game.

This game is generally considered legal and exempt from most gambling prohibitions in India, although this is subject to state-specific laws.

Game of Chance

This is a game where the outcome is primarily or entirely determined by randomness, luck, or uncontrollable factors. The outcome is overwhelmingly dependent on luck or random factors, with minimal or no influence from a player's skill or strategy.

Game of chance is largely prohibited under the Public Gambling Act and most state gambling laws. Engaging in games of chance for monetary gains is typically considered illegal in India.

Indian States and Territory Where Gambling is Permitted

There are only a handful of states where gambling is permitted and below is a breakdown of these regions, along with key details:

Sikkim

Sikkim is considered the most progressive state in India regarding online betting. It has enacted its own law, the Sikkim Online Gaming (Regulation) Act, 2008, and the Sikkim Online Gaming Rules, 2009.

This law allows for licensing and regulation of online games of both skill and chance, including online casinos and sports betting. However, these licenses are generally for platforms within the region of Sikkim, with servers located locally and access often limited to residents within the state to avoid conflicts with other state laws.

Nagaland

Nagaland has the Nagaland Prohibition of Gambling and Promotion and Regulation of Online Games of Skill Act, 2016. The primary focus of this law is on regulating and promoting "online games of skill."

The Act allows for the licensing of platforms offering games like poker, rummy, chess, fantasy sports, and other skill-based games.

Goa

Goa is well-known for permitting land-based casinos, although there are no specific, clear-cut laws fully legalizing and regulating online betting for its residents. However, the Goa, Daman and Diu Public Gambling Act, 1976 has been interpreted to allow certain electronic amusement games.

Daman & Diu

Similar to Goa, Daman & Diu allow land-based casinos under the same Goa, Daman, and Diu Public Gambling Act, 1976.

West Bengal

West Bengal allows skill-based online games, including poker, under the West Bengal Gambling and Prize Competitions Act, 1957. This is similar to the "games of skill" exception found in many states.

Betting With Bitcoin in India

Cryptocurrencies like Bitcoin are not recognized as legal tender in India, meaning they cannot be used as a replacement for the Indian Rupee for everyday payments. However, despite not being legal tender, owning, buying, selling, mining, and holding cryptocurrencies is legal in India after the Supreme Court overturned the Reserve Bank of India's (RBI) 2018 banking ban on crypto in 2020.

There is no dedicated law that legalizes or explicitly bans crypto betting in India, which leaves it in a regulatory vacuum. However, since crypto betting inherently involves wagering on uncertain outcomes, it would likely be subject to the existing gambling laws in India, primarily the state-level prohibitions for "games of chance."

This means that in states where all forms of gambling are banned, betting with Bitcoin would be illegal.

Offshore Bitcoin Betting

Due to the restrictive regulations around Bitcoin betting in India, many players often look towards offshore crypto betting platforms. These sites operate outside of Indian jurisdiction and are not subject to their laws or restrictions.

While this concept appears appealing, there may be inherent risks as platforms that accept Indian users operate in a legally precarious position. They could be subject to prosecution under existing gambling laws.

It is also important to note that while the legal focus is often on the operators of gambling houses, users can also face penalties for being found gambling.

Things to Consider Before Choosing an Offshore Bitcoin Betting Site

With offshore crypto betting sites not subject to Indian laws, it is important to choose legitimate platforms to avoid falling victim to scams. We will now offer some things to consider before opting for any offshore betting site:

Legality

The first thing to consider before choosing an offshore crypto betting site is legality of the platform. Always ensure that your chosen operator has a license from reputable gambling authorities.

Some of the more popular licensing bodies are Malta Gaming Authority, Curaçao eGaming, UK Gambling Commission, Gibraltar Regulatory Authority.

Bitcoin Availability

The point of seeking out an offshore Bitcoin betting site is to wager with the digital currency. It is vital to ensure your chosen offshore platform accepts Bitcoin as a means of transaction.

User friendliness

Betting is usually a simple and straightforward process and should be done with minimal fuss. A cluttered site makes it tricky navigating through the numerous sections, so a good crypto betting site should have a user-friendly interface.

It should be easy to navigate the different sections of the page. Carrying out your wagering needs from making deposits, withdrawals and claiming your bonus, should be done with minimal fuss.

Bonuses and Promotional offers

Everyone likes freebies so bonuses and promotional offers will be a major consideration when choosing a sports betting site. The welcome offer is usually your first introduction to promos on a betting platform and the ones with generous bonuses.

There are also other offers that may catch your attention like the loyalty bonus, accumulator bonus and numerous free bets.

Bitcoin Betting Tax in India

Under the Income Tax Act, the Indian government treats cryptocurrencies as "Virtual Digital Assets" (VDAs).

As of the 2022 budget, income from the transfer of VDAs (cryptocurrencies) is taxed at a flat rate of 30% on profits. Additionally, a 1% Tax Deducted at Source (TDS) applies to crypto transactions exceeding a certain threshold.

The government's decision to tax crypto gains indicates a perception that crypto trading is considered a speculative activity, which has similarities to gambling in terms of its risk profile.

Future Outlook of Betting With Bitcoin in India

The Indian government is believed to be working on a comprehensive crypto legislation, although its progress has been slow. There are also ongoing conversations about how to regulate online gaming, with a push towards creating self-regulatory bodies and clear guidelines.

Future legislations addressing cryptocurrencies are also likely to consider their use in betting, potentially introducing specific regulations. However, the trend appears to be towards stricter oversight and regulation, rather than an open embrace of all forms of crypto-related activities.

Betting With Bitcoin in India FAQS

Is it Legal to Bet with Bitcoin in India?

There is no explicit federal law specifically addressing gambling, leading to a landscape influenced by various existing laws and state-level regulations. This means that only a handful of states like Sikkim and Nagaland permit certain forms of gambling while most of the others lean towards prohibition.

How do State Laws Impact Bitcoin Betting?

With the primary authority for regulating crypto betting residing with individual states, it creates an irregular patchwork of regulations. Only a handful of states permit any form of gambling, including Bitcoin betting as others have it fully prohibited.

Are There Any Indian States Where Bitcoin Betting is Legal and Regulated?

Regions like Goa and Daman & Diu have their own laws, although only land-based casinos are permitted within this jurisdiction.

Are Offshore Bitcoin Betting Sites Safe For Indian Players?

Due to the restrictive attitude to Gambling in India, many players often go to offshore crypto betting platforms. These operators are safe as long as they are licensed by some of the more prominent authorities like Malta Gaming Authority, Curaçao eGaming, UK Gambling Commission, Gibraltar Regulatory Authority.

Are Bitcoin Betting winnings taxable?

Under the Income Tax Act, the Indian government treats cryptocurrencies as "Virtual Digital Assets" (VDAs). And as of the 2022 budget, income from the transfer of VDAs is taxed at a flat rate of 30% on profits.

This means that while crypto betting is still generally prohibited, cryptocurrency winnings can be subject to tax as they are considered assets.

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