What section 7 means for credit cards at casinos
RuPay, Visa and Mastercard cards issued in India are all run through Indian banks. Section 7 of the 2025 Act bars banks and anyone else who handles payments from carrying out or helping a transfer to an online money gaming service. Since 1 May 2026 a card issuer that lets such a payment through commits an offence that carries up to 3 years in prison, a fine of up to ₹1 crore, or both.
The rule is the same for credit and debit cards: what matters is the purpose of the payment, not the type of card.
Paying a foreign site in foreign currency
Offshore casinos are run by companies registered abroad, so a card payment to one is also a foreign exchange transaction. Foreign currency may not be drawn for lottery tickets, football pools and sweepstakes. Nor may it be drawn to send lottery winnings or racing income abroad. Schedule I of the 2000 rules on current account transactions lists these purposes, among others.
Cards compared with other methods
| Method | Rule that applies | Penalty for the payment firm |
|---|---|---|
| Credit or debit card | Section 7 of the 2025 Act; FEMA when paid abroad | Up to 3 years, ₹1 crore, or both |
| UPI and net banking | Section 7 of the 2025 Act | Up to 3 years, ₹1 crore, or both |
| Foreign e-wallet loaded by card | Section 7 for the Indian card; FEMA for the transfer abroad | Up to 3 years, ₹1 crore, or both |
Questions
Can an Indian credit card be used at an offshore casino?
No. Section 7 of the 2025 Act bars Indian card issuers from processing payments for online money games, and FEMA restricts foreign exchange for gambling.
Is a debit card treated differently from a credit card?
No. Section 7 looks at what the payment is for, so both are covered.
Sources
- Promotion and Regulation of Online Gaming Act, 2025: section 7, with the penalties in section 9
- FEMA current account rules, 2000: rule 3 read with Schedule I
- PIB, 30 April 2026