For every cheer in a stadium, there's often a quiet bet placed in the background, a reminder that gambling and sports in India are never too far apart. Haryana's latest legislation aims to address this overlap, but its scope raises more questions than answers for online real money gaming.
As a significant legislative step towards stringently regulating the gambling sector, the State of Haryana has enacted the Haryana Prevention of Public Gambling Act, 2025 ("Haryana Gambling Act"). The Haryana Gambling Act repeals the application of the Public Gambling Act, 1867 in the state of Haryana and introduces a comprehensive framework to regulate, prohibit and penalize various forms of public gambling, including the operation of common gambling houses, betting in sports or elections, as well as match or spot fixing in sports.1 This article outlines key provisions of the Haryana Gambling Act and examines its implications on the gaming and betting industry and its conflict with the recently passed Promotion and Regulation of Online Gaming Bill, 2025 ("Online Gaming Bill").
Key Highlights of the Haryana Gambling Act
- Game of Chance v. Game of Skill: A key aspect
of the Haryana Gambling Act is its distinction between game of
chance and game of skill, which forms the basis of what is
prohibited and permitted. The Haryana Gambling Act clarifies under
the definitions of 'gaming' and 'gambling' that
only games of chance constitute gambling, where losing parties pay
or forfeit some consideration (monetary or otherwise) to the
winners. Game of chance has been defined as any game where the
outcome is driven more by luck than by the player's ability.
Put simply, if chance has a greater role than skill in determining
who wins, the activity is treated as gambling.
By contrast, a game of skill is defined as any game where skill outweighs chance and success hinges on factors such as the player's superior knowledge, training, attention, experience and adroitness. The definition is careful to acknowledge that even in such games, some element of chance may exist, but as long skill predominates, the game falls in this category and excludes skill-based games from the ambit of gambling.
It is important to note that while the Haryana Gambling Act sets out a detailed definition of a 'game of skill', it also equips the State Government with the discretion to notify particular games as skill-based. Indian courts have, over the years, recognised certain games such as rummy, ludo or fantasy sports as games of skill. Until clarified, operators, investors and even players remain unsure how the law will be enforced in practice.
The Indian Parliament has however passed the Online Gaming Bill prohibiting online money games while encouraging the growth of e-sports and social games. The Bill stems from rising incidents of financial distress and suicides linked to online betting and is designed to operate alongside other state laws but will prevail in case of conflict. The Bill defines the landscape of online games where 'online money games' are broadly defined to include any game where players deposit funds or equivalent tokens in the hope of winning monetary or other tangible rewards. 'E-sports' are positioned as competitive, skill-based digital sports, recognised under the National Sports Governance Act, 2025 and requiring registration with a regulatory authority. These may involve entry or participation fees and prize money but cannot involve any betting or staking. 'Social games' are described as recreational or skill-enhancing games without monetary wagering, and they may operate on a subscription or on-time fee model.
As the thrust of the Online Gaming Bill is complete prohibition of online money games and online money gaming services, the enablement for providing gaming services under the Haryana Gambling Act will be curtailed and be subject to the restrictions once the Online Gaming Bill is enforced. As a consequent, the operators in the state of Haryana may not be able to rely on the Haryana Gambling Act to offer their online money games such as online rummy and fantasy sports.
- Penalty on Gambling Houses: Gambling activities at common gambling houses, which include not only physical venues like houses, tents, or vehicles but also digital platforms facilitating gambling for consideration are penalised. Owners, operators, or facilitators can be punished with 3-5 years of imprisonment and fines up to INR 1 lakh, with stiffer penalties for repeat offences. Merely being present in a common gambling house is presumed to indicate participation, unless proven otherwise.
- Prohibition on Match-fixing Activities: To preserve integrity of sports, match-fixing and spot-fixing are explicitly prohibited, covering not only players but also anyone involved in organizing or influencing a game including official, manager, physio instructor, coach, referee, umpire, ground-men etc.
- Wider Powers of Search and Arrest: Police officers, authorized by an Executive Magistrate or Gazetted Officer, can enter and search any premises suspected of being used for gambling, seize instruments and money involved and arrest individuals without a warrant. Instruments of gambling found in such premises are presumed to be used for illegal gambling, shifting the burden of proof to the accused.
- Abetment of offences and Penalties: The Haryana Gambling Act further penalizes abetment of offences and imposes strict consequences for providing false identity or attempting to conceal one's involvement in gambling activities. It also addresses membership in organized gambling syndicates, subjecting participants to rigorous imprisonment and fines, with harsher penalties for repeat offenders.
Industry Implications and Enforcement Developments
The Haryana Gambling Act has already triggered enforcement actions, including an FIR registered by the Haryana Police against entities such as SPORTASY, a Bronze Member of the Federation of Indian Fantasy Sports (FIFS), for allegedly promoting illegal online betting.2 In a swift response, many online gaming and fantasy sports entities such as Mobile Premier League (MPL) has restricted access to its MPL Opinio and MPL Fantasy features for users in Haryana.
Legal challenges to the Act has also been initiated. For instance, Probo, a real-money prediction platform covering sports, finance, and entertainment, has filed a civil writ petition before the Punjab and Haryana High Court, challenging the constitutionality of the Haryana Gambling Act. The matter is currently pending before a two-judge bench but the case maybe impacted in view of the recently enacted Online Gaming Bill.
Conclusion
While the Haryana's Gambling Act carves out a clear exception for games of skill, whether they involve monetary or not, this state-level permission will become ineffective once the central law comes into force. Real-money skill-based games, while valid under Haryana Gambling Act, will be prohibited nationwide including in Haryana due to the overriding effect of the central Online Gaming Bill.
Our next update will discuss the Online Gaming Bill and its challenges for the gaming industry.
Footnotes
1. For clarity on applicability of goods and services tax on online gaming industry, refer to our earlier update at https://lexcounsel.in/newsletters/impact-of-uniform-goods-and-services-tax-on-the-indian-online-gaming-industry/
2. https://www.financialexpress.com/business/brandwagon-fir-filed-against-fifs-member-sportasy-in-haryana-for-alleged-illegal-betting-3874744/
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