Bihar Enacts New Gambling Act With Federal Law Taking Precedence
Bihar has enacted a new gambling prohibition act, repealing an older law. However, the state's legislation is subordinate to the central government's new real-money gaming regulations.
Bihar has enacted the Bihar Gambling (Prohibition) Act, 2026, effective August 13, 2026, replacing the 159-year-old Public Gambling Act of 1867. The state's new law operates alongside the central government's Promotion and Regulation of Online Gaming Act (PROG Act), notified on April 24, 2026.
The key distinction lies in the PROG Act's overriding authority. While gambling activities within Bihar fall under both laws, the PROG Act will prevail in cases of conflict. This is because Section 18 of the PROG Act explicitly states its supremacy over other laws, whereas Section 17 of the Bihar Act limits its overriding effect to other state laws.
The Bihar Act defines "gambling" broadly, encompassing all physical and online wagering or betting for financial gain. In contrast, the PROG Act categorizes online games into e-sports and social games (both permitted) and online money games (prohibited). Notably, the PROG Act does not distinguish between games of skill and chance, while the Bihar Act defines a "game of chance" based on luck rather than participant expertise.
The Bihar Act also shifts liability for financial services facilitating gambling. Individuals allowing their accounts for gambling may face penalties, whereas the PROG Act places more onus on financial service providers to prevent such transactions. Companies in Bihar may be exempt from liability if they prove due diligence, but otherwise face consequences alongside their management.
Enforcement in Bihar relies on existing police machinery with powers to search and seize gambling-related accounts. The PROG Act, however, established the Online Gaming Authority of India (OGAI) as a dedicated regulatory body responsible for game classification, registration, and grievance redressal.