Fantasy Cricket Winnings Tax and the 2025 Online Money Game Ban
Short answer: since August 2025, paid fantasy cricket contests (the kind where you pay an entry fee to win cash) are banned in India under the Promotion and Regulation of Online Gaming Act, 2025. Dream11 and similar apps stopped paid contests and moved to free-to-play formats. Any winnings you did earn, including older winnings still to be reported, and cash prizes from free contests, are taxed at a flat 30% plus cess.
What the Online Gaming Act, 2025 changed
- It bans offering, operating or advertising online money games, whether they’re called games of skill or games of chance. Paid fantasy sports are included.
- Banks and payment apps may not process payments for such games.
- It promotes e-sports and online social games (free, or subscription-based without stakes).
- Penalties for operators run up to three years in jail and a fine of up to ₹1 crore.
After the Act passed in August 2025, Dream11 paused all paid contests and moved to free-to-play and other sports products. Other fantasy apps did the same. Be careful of any app or website still offering paid cash contests: it is operating illegally, and your money isn’t protected.
How winnings are taxed
| Type of winnings | Tax rate | TDS |
|---|---|---|
| Online games (net winnings), until paid games stopped | 30% flat + 4% cess (plus surcharge if applicable) | 30% on net winnings, no minimum threshold |
| Prizes from lotteries, game shows, contests (including free contests with cash prizes) | 30% flat + cess | 30% if the prize exceeds ₹10,000 |
- Net winnings = amount withdrawn (or held at year-end) minus deposits, calculated over the year.
- No basic exemption: the 30% applies even if your total income is below the taxable limit, and the ₹12 lakh rebate doesn’t cover it.
- No deductions or loss set-off: you can’t claim expenses or set off losses from other games against these winnings.
- The Income-tax Act, 2025 (in force from 1 April 2026) continues to tax such winnings at a flat 30%.
Worked example
Say you deposited ₹5,000 during a year and withdrew ₹25,000 in winnings from a fantasy app. Net winnings = ₹20,000. Tax at 30% = ₹6,000, plus 4% cess = ₹6,240. This would have been deducted as TDS by the platform when you withdrew.
Reporting in your ITR
- Download your Form 26AS / AIS from the Income Tax e-filing portal. TDS deducted by the gaming platform shows there.
- Report the winnings under Income from Other Sources, in the special-rate section.
- Claim the TDS already deducted. Tax at 30% is usually fully covered, so there’s normally nothing more to pay.
See how to calculate income tax for how this fits with your other income.
What about money stuck in a fantasy app wallet?
After the ban, the major platforms announced that users could withdraw their deposit and winnings balances. If you still have a balance, use the app’s withdrawal or support option, and keep records of deposits and withdrawals for your tax return.
Frequently asked questions
Is Dream11 legal now?
Dream11 now offers free-to-play formats, which are allowed. Paid cash contests are banned under the Online Gaming Act, 2025.
Are free fantasy contest prizes taxable?
Yes. Cash prizes (and the value of prizes in kind) are taxed at 30%, with TDS if the prize exceeds ₹10,000.
I won money before the ban but didn’t report it. What now?
Report it in the return for that year. If the deadline has passed, you can file an updated return (ITR-U) by paying additional tax. TDS already deducted still counts.
Related guides
Sources: Income Tax Department: winnings from online games, Ministry of Electronics and IT, Income Tax e-filing portal. General information, not tax or legal advice.