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The authorities have increasingly focused on imposing enhanced penalties and taking decisive action against both domestic and offshore operators, including issuing blocking orders to restrict access to foreign platforms offering services in India. Please also note that since the New Act prohibits all online real-money games, which include fees or deposits made by end users in the form of money or other stakes, the use of VDAs in the context of online real-money games would also be prohibited. Also, the services provided through an online platform , over the internet,, which are impossible to ensure in the absence of information technology, are covered within the scope of “online information and database access or retrieval services” (“OIDAR”) and include online gaming. Where the income of a resident includes income by way of winnings from online games of any sort, including in the nature of betting, gambling, etc., such income would be liable to tax in the hands of such taxpayer, at 30% , plus applicable surcharge and cess,. On the other hand — a tax resident will be charged to tax in India on his global income, i.e., income earned in India as well as income earned outside India. While this does not fall within the ambit of a “licence” — an OGI offering an “online real-money game” is required to obtain a verification from an SRB in order to offer its online game to users in India.
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The state government may appoint private persons or companies to facilitate the conduct of the state-run lottery. If the Rajasthan Bill is introduced — then the licensing authority will be the officers appointed by the state government.xiv However, instead of laying down an objective criterion to distinguish games of skill from games of chance, courts in India have arrived at their determination based on the facts and circumstances of each case.