Offshore Gambling Rises After India's Real-Money Gaming Ban

India's recent prohibition on online real-money gaming has spurred an unexpected rise in offshore gambling activities, as revealed by a survey conducted among former gamers in the Delhi National Capital Region (NCR). Despite the ban's intention to curb gambling, it seems to have unintentionally redirected players to unregulated international platforms, thereby enhancing their participation and spending outside India's jurisdiction.

Survey Insights: Behavioral Changes Post-Ban

The study, carried out by CUTS International with 1,000 former online real-money gaming users in Delhi NCR, assessed player behavior both before and after the enforcement of the Promotion and Regulation of Online Gaming Act, 2025. According to self-reported data, the research highlighted significant alterations in platform access, spending habits, and the time devoted to gaming. Amol Kulkarni, Director (Research), CUTS International, commented on the findings, noting a significant migration toward offshore betting platforms. "The indications from the Delhi NCR survey point to a strong migration towards offshore betting platforms, since the prohibition on online real money gaming in India. We are seeing almost one in four surveyed RMG users migrating toward offshore betting platforms, with increased frequency and duration of engagement with offshore platforms compared to pre-ban patterns. These observed behavioural changes represent an unintended consequence of the policy that warrants examination," he stated. Post-ban, the survey showed that 82 percent of former players were utilizing offshore platforms, an increase from 68.3 percent prior to the ban. Additionally, 25 percent of users initiated offshore betting only after the prohibition came into effect, while 57.3 percent continued, illustrating a pivotal shift in the gambling landscape.

Challenges and Consequences for Regulation and Industry

The movement to offshore platforms brings forth significant challenges for regulation. As noted by Divya Sharma, a corporate lawyer, foreign operators are beyond the reach of India's law. "Offshore operators sit outside India’s regulatory reach without new laws and international cooperation,” she asserted, highlighting the difficulty in enforcing domestic regulations such as KYC/AML norms, with operators using VPNs or mirror domains to maintain accessibility. The shift to offshore gambling has also impacted the domestic gaming sector, with smaller operators and associated industries feeling the fallout from the ban. According to iGaming strategist Japneet Singh Sethi, "The decision to ban definitely shattered a lot of Indian investors’ dreams to build something valuable and unique." Sethi further noted the consistent growth of offshore gambling and suggested that restoring regulation could open new revenue streams through licenses and taxes: "If the government decides to overhaul the entire industry, this will ensure proper registration and compliance for operators and will open up additional revenue streams for government in the form of licence costs and taxes.” The findings ultimately highlight the need for a reevaluation of the current regulatory framework to prevent unintended consequences and bolster the domestic gaming industry. Source: “India offshore betting up 20% after RMG ban: Report”, cuts-ccier.org. By GamesAndCasino