Fantasy Sports, Online Gaming Regulation, and Federalism Tensions
India's online gaming sector grew rapidly from 2018–2025 driven by fantasy sports platforms (Dream11, MPL, etc.) and card-game platforms (Junglee Games, Ace2Three). Regulatory approaches have fragmented along federal lines: some states enacted bans while the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules and the proposed Promotion and Regulation of Online Gaming Act, 2025 (PROGA) attempted central regulation. The coexistence of central regulation under IT/PROGA with state-level bans under Entry 34 created constitutional tensions.
- Case name (GST matter): Directorate of Revenue Intelligence v. Gameskraft Technologies; aggregate GST notices to the sector: ~Rs 1.12 lakh crore
- Case name (state ban matter): State of Tamil Nadu v. Junglee Games India Pvt. Ltd.
- Prior Karnataka High Court ruling: quashed Gameskraft's Rs 21,000 crore notice — now set aside
- Online gaming industry's argument: GST should be levied only on gross gaming revenue (platform fee), not the prize pool contributed by players
- The 28% GST ruling applies equally to fantasy sports platforms, casinos, and horse racing operators
● Tracked since May 27, 2026 · last seen May 27, 2026 · updates as the daily brief publishes
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