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Gambling is banned in India except in Goa, Sikkim and Daman. Since gambling is illegal in most of India, these states have legalized gambling with laws. In the state of Goa, gambling was allowed after the act of Goa, Daman and Diu Public Gaming Act was passed in 1976.

According to the Income Tax Act, any game winnings are considered income and are subject to tax at 30% under Section 115BB.