Quick answer
No, not for real money. India’s Promotion and Regulation of Online Gaming Act, 2025 (Act 32 of 2025) and the Online Gaming Rules, 2026 have been in force since 1 May 2026. They prohibit online money games, whether based on skill, chance or both, along with their advertising, promotion and facilitation, and they bar banks and payment systems from processing related payments. Colour trading played for money falls within that ban. Challenges to the Act are pending before the Supreme Court.
What does the Online Gaming Act, 2025 say?
| Point | What the law provides |
|---|---|
| Scope | All online money games: skill, chance or both |
| Definition | Games where users pay fees or stake money expecting monetary or similar winnings |
| Offering | Prohibited |
| Advertising and promotion | Prohibited |
| Payments | Banks and payment systems must not process related transactions |
| Allowed formats | E-sports and online social games, under a regulatory framework |
| In force | 1 May 2026, with the Rules notified on 22 April 2026 |
Government statements describe penalties of up to three years’ imprisonment and fines up to ₹1 crore for offering or facilitating online money games, and up to two years’ imprisonment and fines up to ₹50 lakh for advertising them (sections 9(1) and 9(2) of the Act).
Does the law apply to colour trading?
Yes, when it is played for money. Colour trading platforms take deposits and pay out money depending on results, which is the kind of game the Act defines as an online money game. A free practice mode with no money in or out is different, but most colour trading activity involves real stakes.
What does this mean for players?
The penalties in the Act target those who offer, advertise or facilitate money games, and the Act sets no penalty for simply playing; ministers have described users as victims rather than offenders. That does not make playing safe:
- Platforms operating in India are not licensed, so there is no regulator to complain to.
- UPI and bank payments may be blocked, reversed or flagged.
- Withdrawals may fail if payment partners stop processing them.
- Fraudulent sites are harder to pursue.
Read colour trading real or fake and account security if you already hold a balance anywhere.
Is the law being challenged?
Yes. Several gaming companies challenged the Act, and the Supreme Court took the petitions to itself. Until the court rules otherwise, the Act and Rules remain in force. Check current news before relying on any change.
What about state laws?
Several Indian states also have their own gambling and online gaming laws, and some banned or restricted online betting before the national Act. The national Act now applies across India in addition to state rules.
Is this legal advice?
No. This page summarises publicly available information about the Act and Rules as of October 2026. The law can change and its application to specific facts can be complex. For a decision that matters to you, consult a qualified lawyer in your state.
Where can I read the law?
The Act is published on India Code as The Promotion and Regulation of Online Gaming Act, 2025 (32 of 2025). The Rules were notified by the Ministry of Electronics and Information Technology on 22 April 2026, and the Press Information Bureau summary of the Act explains its main provisions.
Who is this guide for?
This page is for adults in India who want to know where colour trading stands under current law before they register, deposit or keep a balance on any platform.
Key takeaways
- Online money games, including colour trading for money, are prohibited in India from 1 May 2026.
- The ban covers offering, advertising, promotion and payment processing.
- Penalties target operators, promoters and facilitators; users still face payment and fraud risk.
- Challenges are pending before the Supreme Court; the law is in force meanwhile.
- This is general information, not legal advice.
Frequently asked questions
Is colour trading banned in India?
Playing colour trading for money falls within the ban on online money games under the Online Gaming Act, 2025, in force from 1 May 2026.
Will I be punished for playing colour trading?
The Act’s penalties target those who offer, advertise or facilitate money games. Users still face blocked payments, failed withdrawals and fraud with little recourse.
Is colour trading legal if it is a skill game?
The Act covers money games based on skill, chance or both, so a skill label does not take it outside the ban.
Can banks block colour trading payments?
Yes. The Act bars banks and payment systems from processing transactions for online money games.
Has the Supreme Court struck down the Act?
As of October 2026, challenges are pending and the Act remains in force.