How To Get A Gaming License For An Online Rummy Business In India

By Author: Ajeet Kumar is a digital marketing strategist .
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The online rummy industry in India is booming, with millions of active users engaging in real-money skill-based games. As you know, rummy is the most popular online card game. Without a proper license, your online rummy business could not operate and face penalties or even shutdown. However, to run a legal and trustworthy online rummy platform, obtaining a valid gaming license is crucial. A proper gaming license not only builds user trust but also protects your business from legal hurdles. This article walks you through the types of gaming licenses, the jurisdiction-wise process, requirements, costs, and expert tips for successfully licensing your rummy game platform.
Introduction: Why Licensing Is a Must
Launching a rummy app or website in India without a gaming license is a high-risk endeavor that may result in legal action, shutdown, or user mistrust. In India, without a gaming license, you could not run any online games. Since rummy is recognized as a game of skill by the Supreme Court of India, it's exempt from gambling laws in most states. However, you still need to operate under a valid licensing framework ...
... to ensure compliance and transparency. As you are aware, players from a few states, including Andhra Pradesh, Telangana, Nagaland, Assam, Odisha, and Sikkim, are not permitted to play online rummy cash games.
Why a gaming license is important for online Rummy
Many factors affect for launch of a mobile rummy app or browser-based platforms in India if you have no valid License. Below are given the following things why it matters:
Legal Compliance: A gaming license always protects you from lawsuits and national gaming laws.
Trust-Building: If you have a valid license, then the user trusts your gaming app.
Payment Gateway Integration: As you know, banks and financial institutions require a legal proof of licensing for real money transactions.
App Store Approval: Most of the platforms, like Google Play Store and App Store, may reject or remove apps if you do not have a legal license for online gaming.
Types of Gaming Licenses for Rummy Platforms in India
1. State-Specific Licenses
Some Indian states like Nagaland and Sikkim offer licenses for skill-based games such as rummy.
2. Self-Regulatory Licenses (AIGF/All India Gaming Federation)
Not a government license but a widely recognized industry standard, ideal for self-regulation and credibility.
3. International Licenses (e.g., Curacao, Malta)
Suitable for platforms operating beyond India or planning international expansion. However, it may not be fully accepted within Indian jurisdiction.
Jurisdiction-Wise Licensing Process
• Nagaland:
The Nagaland Prohibition of Gambling and Promotion and Regulation of Online Games of Skill Act, 2016, allows companies to apply for licenses for games like rummy, poker, and fantasy sports.
• Sikkim:
Offers a license for online gaming via intranet-based models and includes skill-based games.
• Telangana, Andhra Pradesh, Tamil Nadu:
Currently prohibits online rummy with stakes. Avoid launching operations here.
• Other States:
Most Indian states allow skill-based games but lack specific licensing bodies. In such cases, a company may opt for self-regulatory bodies like AIGF.
Steps to Get Rummy Game Licenses in India
1. Choose the Licensing Jurisdiction
Pick a state or self-regulatory body depending on your target audience.
2. Incorporate Your Company
Register as a Pvt. Ltd. or LLP under the Indian Companies Act.
3. Prepare Required Documentation
Includes company registration, KYC of directors, game algorithms, player protection policies, payment gateway compliance, etc.
4. Application Submission
Submit to the relevant gaming authority (e.g., Nagaland's Finance Department).
5. Game Testing & Certification
You may need to get your platform certified for RNG (Random Number Generator) and fair play.
6. Due Diligence and Review
The authority will review compliance documents, tech infrastructure, and business model.
7. License Grant & Renewal
Upon approval, licenses are granted typically for 1–5 years and can be renewed periodically.

Important Requirements for Gaming License Approval
• Game must be of skill, not chance (rummy qualifies).
• Transparent terms & conditions, responsible gaming, and anti-addiction policies.
• Certified RNG software and secure backend architecture.
• Compliant payment gateway and KYC/AML (Anti-Money Laundering) standards.
• Robust player protection and age verification systems.
• IT infrastructure hosted in India (especially for state-specific licenses).
Benefits of Licensing Your Rummy Platform
• Legal Protection: Operate without fear of shutdown or litigation.
• User Trust: Gain credibility and improve player acquisition.
• Payment Gateway Approval: Banks and PGs require valid licenses.
• App Store Compliance: A licensed app is more likely to be approved on the Play Store and App Store.
• Brand Partnerships: Affiliates and ad networks prefer licensed platforms.
• Long-Term Scalability: Easier expansion and fundraising with legal backing.
Cost Breakdown and Timeline
Component Estimated Cost (INR)
Company Incorporation ₹20,000 – ₹50,000
Legal & Documentation ₹50,000 – ₹1,00,000
RNG/Game Certification ₹1,00,000 – ₹2,00,000
Nagaland License Fees (3 years) ₹10,00,000 – ₹30,00,000
Tech Compliance & KYC Systems ₹2,00,000 – ₹5,00,000
AIGF Membership (optional) ₹2,00,000 – ₹3,00,000
Time Required: 60 to 120 days, depending on jurisdiction and documentation readiness.
Common Challenges and How to Avoid Them
Challenge Solution
State-wise legal ambiguity Stick to states like Nagaland or use self-regulation
Delay in documentation Hire a professional legal consultant
Game fairness validation Get certified by iTech Labs or similar RNG testing bodies
Payment gateway rejections Partner only after licensing and compliance readiness
Platform bans in restricted states Use geo-fencing and IP-based state detection

Expert Tips for Smooth Approval
• Consult a Gaming Law Expert: Don’t DIY your license; legal consultation is a must.
• Keep Your Game 100% Skill-Based: Add features like timer-based turns, leaderboards, etc.
• Choose the Right Hosting & Security Partner: Invest in data security and fraud protection.
• Have Transparent Payout Policies: This builds trust and satisfies legal checks.
• Use Legal Disclaimers and State-Wise Restrictions: Ensure your terms of service are watertight.
FAQs – Gaming License for Rummy in India
Q1: Is online rummy legal in India?
Yes, the Supreme Court of India has ruled that rummy is a game of skill and not gambling. However, some states restrict or ban online real-money games.
Q2: Can I operate pan-India with a Nagaland license?
Mostly yes, except in states where online rummy is explicitly banned (like Telangana, Andhra Pradesh).
Q3: Is RNG certification mandatory?
Yes, to prove the fairness of the game, RNG certification is often required for licensing.
Q4: How long does it take to get a license?
It can take between 2 and 4 months, depending on your preparedness and the licensing authority’s process.
Q5: Do I need to renew my license every year?
Usually, licenses are valid for 1–3 years and must be renewed accordingly.