Bihar’s proposed gambling ban raises compliance risk for online gaming platforms
A Bihar law banning offline and online gambling, including skill games, could clash with the Centre’s PROG Act. The overlap may force gaming operators, payment aggregators and banks to reassess KYC, transaction controls and state-level geofencing ahead of Supreme Court review.
What happened
Online gaming sector · Bihar’s new law bans all offline and online gambling, including skill games, creating overlap with the Centre’s PROG Act. The conflict
Key facts
- August 13, 2026
- 159-year-old Public Gambling Act
- PROG Act, 2025
- Bihar Official Language Act, 1950
- Official Languages Act, 1963
- Prevention of Money Laundering Act, 2002
Why this matters
Reassess gaming-sector partnerships and acquisition targets for state-level regulatory exposure, prioritizing adaptable compliance infrastructure and contractual protections around geofencing and transaction controls.
What to watch
- Publication of Bihar's final bill text, definitions of gambling and skill games, penalties and implementation date.
- Supreme Court hearing schedule, interim orders and final ruling on state versus central authority.
- Central government notifications or rules under the PROG Act.
- RBI, NPCI, bank or payment-aggregator advisories affecting gaming merchant codes or transaction screening.
- Announcements of similar legislation or enforcement actions in other states.
- Evidence of app-store delistings, advertising restrictions or payment failures for operators serving Bihar.
- Map Bihar customer exposure, transaction volumes, affiliate traffic and merchant payment flows.
- Prepare state-level geofencing and location-assurance controls, including VPN and spoofing detection.
- Review game classifications, marketing claims and skill-versus-chance documentation with counsel.
- Engage banks, UPI partners, card networks and payment aggregators on potential transaction-blocking rules.
- Create customer offboarding, wallet-withdrawal and dispute-resolution playbooks for a Bihar service suspension.
- Model revenue leakage and customer-acquisition-cost increases if other states adopt comparable restrictions.