They are legalizing it and if you'll search for different Indian-based online casino's, there's too many of it that exists today including the non-crypto and crypto casino's.
It is good that they are going forward with that and in some other countries, I'm not sure why they are not yet legalizing it or probably wants to have a cut with the portion of the profit or something. It would be interesting if there were to be news about this kind of stuff.
Still 4 states are not legalized the gambling they are, Telangana, Orissa, Gujarat & Andhra Pradesh. Apart from this other states are legalized in gambling and even online gambling site have forbided this states users to play.