Does Indian Bet Payments support the pre-authorisation feature?

In India, gambling and betting activities are subject to strict legal restrictions. Under the Public Gambling Act and the Information Technology Act, online gambling is largely prohibited throughout the country, with the exception of a few states. Therefore, any payment platform or financial institution offering pre-authorisation or other services for betting transactions may be in violation of the law.

We strongly advise you to comply with local laws and regulations and stay away from any illegal gambling activities. Legal forms of entertainment such as lotteries and horse racing are permitted under certain conditions, but only through government-authorised channels.

If you need information about legitimate payment services, we can provide you with advice and recommendations on formal financial services.

In India.Legal betting payments(e.g. regulated activities such as lotteries, horse racing, etc.) may support pre-authorisation features, but the specifics depend on the policies of the payment service provider and the bank. Below is an analysis of the key points:

1. Applicability of pre-authorisation in India

• Credit/debit cards: Some banks may allow pre-authorised transactions for specific merchants (e.g. government-approved lottery platforms or horse racing organisations).
• Digital Wallet & UPI: Major payment apps such as PayTM and PhonePe usually do not support pre-authorisation of betting transactions due to their strict policies.
• Third-party payment gateways: Certain international payment processors (e.g., Stripe, Razorpay) may offer this functionality subject to compliance with the anti-money laundering regulations of the Reserve Bank of India (RBI).

2. Legal and compliance risk

• Available in legal scenarios: Some financial institutions may open up the pre-authorisation function if the transaction involves a government-licensed gaming item (e.g. a state-owned lottery).
• Illegal Gambling Prohibited Uses: In the case of unauthorised online casinos or sports betting sites, India's Foreign Exchange Management Act (FEMA) and RBI regulations explicitly prohibit local banks from processing payments for them, including pre-authorised transactions.

3. Alternative programmes

If your business involves legal entertainment and requires a funds reservation mechanism:
✅ Work with licensed financial institutions to apply for whitelisting;
✅ Adoption of the "top-up balance" mode instead of direct debit;
✅ Explore subscription-based or membership-based charging in line with RBI norms.

⚠️ Important Notes To avoid violation of the Information Technology Act or anti-money laundering regulations that may lead to account freezing or even legal liability, it is important to verify the legality of the business and the qualifications of the partner. For further assistance, it is recommended to consult a professional legal advisor to confirm the feasibility of the specific operation!