Ever wondered if placing a bet with Bitcoin is just a fun pastime or will end you up in jail? What makes crypto gambling different from traditional betting, and why does its legality vary so wildly across borders? Let’s understand the regulations step by step.
Imagine using digital currencies like Bitcoin or Ethereum for chance-based games like sports betting on blockchain-powered platforms.
Let’s start by understanding the foundations of crypto. Cryptocurrency operates on decentralized networks, offering anonymity and speed that traditional fiat currencies can’t match. In gambling, this means faster transactions, lower fees, and sometimes, evasion of oversight.
Many jurisdictions treat crypto as property or commodities, not money, which complicates its use in betting. Additionally, traditional gambling laws often struggle to adapt to digital assets.
India is a nation with a rich history of games like Teen Patti and Rummy. But the Public Gambling Act of 1867 prohibits most forms of gambling, but it’s applicable primarily for physical establishments. Online gambling falls into a gray area, regulated by states.
Some, like Goa and Sikkim, allow licensed casinos. But what about crypto?
As of 2025, India’s stance on cryptocurrency has evolved. The government doesn’t recognize crypto as legal tender, but it’s not outright banned.
Crypto enthusiasts are waiting for the Cryptocurrency and Regulation of Official Digital Currency Bill. But instead, we’ve seen taxation on crypto gains at 30% plus a 1% TDS on transactions.
The Promotion and Regulation of Online Gaming Act, 2025, enacted in August, bans all real-money online gaming nationwide. This includes games of chance where money—or its equivalent—is staked.
The legislation targets “real-money gaming,” defined broadly to include any wagering with financial stakes. Penalties are severe—fines up to ₹1 crore and potential imprisonment. States like Meghalaya and Nagaland previously allowed some online gaming. But the Central Government Act overrides, creating a blanket prohibition.
Skill-based games might be exempt if they don’t involve real-money prizes. But most of crypto gambling involves chance.
Many Indians access international crypto casinos, but is that safe?
The Foreign Exchange Management Act (FEMA) restricts cross-border transactions, and using crypto could violate it if seen as evading capital controls. The Reserve Bank of India (RBI) has warned against crypto risks, including money laundering.
So, even if not explicitly illegal, participating carries risks of enforcement actions.
In 2025, discussions around a digital rupee and blockchain integration suggest India is warming to crypto, but gambling remains taboo due to social concerns like addiction. For now, crypto gambling in India is legally ambiguous at best, prohibited under the new act at worst.
There is no centralised global framework around crypto gambling.
In the US, Federal law, via the Unlawful Internet Gambling Enforcement Act (UIGEA), prohibits financial institutions from processing gambling transactions, but it doesn’t outlaw gambling itself.
Australia regulates tightly: The Interactive Gambling Act bans online casinos for Aussies, but sports betting is allowed. Crypto adds complexity; while legal to hold, using it for unlicensed gambling is risky.
ALSO READ: Cryptocurrency Regulations Worldwide
Regulations often focus on AML, consumer protection, and taxation. In 2025, stablecoins and KYC are key, as governments push for transparency.
But why the global disparity? Cultural views on gambling play a role, alongside crypto’s borderless nature, challenging sovereignty.
Beyond legality, other risks include Security breaches, addiction, and tax evasion. Platforms may promise anonymity, but blockchain’s traceability can lead to audits.
Increasing adoption could prompt more regulations, like global standards from bodies like FATF. In India, amendments to the 2025 act might carve exceptions for skill games, but crypto gambling remains uncertain.
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Is crypto gambling legal in India in 2025?
No. The Promotion and Regulation of Online Gaming Act, 2025 bans all real-money online gaming nationwide. Since crypto is treated as a financial stake, most forms of crypto gambling fall under this prohibition.
Can Indians legally use offshore crypto gambling sites?
It remains risky. Offshore casinos are not explicitly regulated under Indian law, but FEMA and tax rules apply. Using crypto for cross-border wagering can be interpreted as evading capital controls, exposing users to enforcement actions.
Is crypto gambling safer than traditional online gambling?
Not necessarily. While blockchain can offer transparency, many crypto casinos operate without licenses. This increases risks such as unfair gameplay, loss of funds, poor dispute resolution, or fraud.
How do other countries treat crypto gambling?
Regulations vary widely. Some regions like the UK, Malta, and Gibraltar license crypto casinos. Others, such as China or Singapore, prohibit it entirely. Many countries regulate online gambling at the state or provincial level, which creates inconsistent rules.
Is using cryptocurrency for skill-based gaming allowed in India?
The 2025 act suggests that pure skill games without real-money prizes may be exempt. However, if cryptocurrency is used as a stake or reward, it may still be categorized as real-money gaming. The legal interpretation remains uncertain.
Krishnan is a Bangalore-based crypto writer dedicated to simplifying complex crypto concepts. He covers blockchain, DeFi, and NFTs, with a focus on real-world asset tokenization and digital trust. Previously he has written on Real Estate related assets for NoBroker. Krishnan holds a B.Tech degree from the College of Engineering Trivandrum.
