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India’s prohibition on online real money gaming has produced an unintended consequence: a significant migration of users toward offshore betting platforms operating outside regulatory oversight.
A survey conducted by CUTS International among 1,000 former online real money gaming (RMG) users in Delhi NCR shows that instead of curbing online gaming activity, the ban has driven users toward unregulated offshore gambling platforms, increasing both the scale and intensity of betting behaviour.
Sharp Rise in Offshore Platform Usage
The research examined behavioural patterns before and after the prohibition on online real money games, which took effect on September 1, 2025, following passage of the Prohibition and Regulation of Online Gaming Act (PROGA).
Usage of offshore betting platforms jumped from 68.3% before the ban to 82% after implementation, marking a 13.7 percentage point increase. The research found that one in four surveyed users began accessing offshore betting platforms only after September 1, 2025.
While 11% of respondents discontinued offshore platform use, 57.3% continued, indicating a sustained behavioural shift triggered by the regulatory change.
Monthly Spending Increases Substantially
Spending patterns intensified dramatically following the ban. Before September 1, 42.5% of users spent Rs 0-999 per month and 49.9% spent Rs 1,000-4,999, while 7.6% reported spending Rs 5,000-9,999. No respondents exceeded Rs 10,000 in monthly spending.
After the ban, the lowest spending bracket fell to 12.7%, while 47.4% spent Rs 1,000-4,999 and 26.2% spent Rs 5,000-9,999. Notably, 7.2% reported monthly spending of Rs 10,000-24,999 and 6.3% spent Rs 25,000 or more—categories that were essentially non-existent before the prohibition.
Daily Engagement Intensifies
User engagement indicators demonstrate a shift from occasional to frequent use. Daily access to offshore platforms rose from 3.4% before the ban to 42.3% afterward. Users spending more than two hours per session increased from 3.4% to 44%, indicating deeper involvement with offshore sites.
“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.”
The statement came from Amol Kulkarni, Director (Research) at CUTS International.
Why Users Continue Offshore Platform Access
The survey identified several drivers for ongoing offshore platform use. Ease of access ranked as the most common factor, followed by the absence of regulated domestic alternatives. Peer influence remained significant, with many respondents reporting that friends and networks continue using offshore platforms.
Better rewards, bonuses, promotional offers, and platform features encouraged participation, supported by preferences for user experience and interfaces.
Regulatory Challenges Mount
The shift toward offshore platforms presents enforcement challenges. These platforms operate beyond domestic regulatory oversight and consumer protection frameworks, making it difficult to apply Indian KYC/AML norms.
Sohom Banerjee, Senior Research Associate at CUTS International, noted that offshore platforms remain accessible because they evade regulatory norms and use VPNs or mirror domains to stay online, making prosecution under Indian law difficult.
A Supreme Court PIL has alleged that approximately 2,000 betting and gambling apps remain accessible, operating via offshore servers and mirror websites despite the nationwide ban.
Industry Impact Assessment
The domestic gaming industry has experienced significant disruption. iGaming strategist Japneet Singh Sethi indicated that smaller operators and related sectors have been particularly affected by the prohibition.
“The decision to ban definitely shattered a lot of Indian investors’ dreams to build something valuable and unique.”
According to industry estimates presented at a MediaNama event, the offshore market is valued at approximately $20 billion, with tax losses alone exceeding $4 billion. Industry analyst Dhruv Garg, Partner at the Indian Governance and Policy Project, warned that these cross-border operators may now exceed the regulated domestic real-money gaming sector in size.
Future Research Plans
CUTS International plans to expand the research beyond Delhi NCR. The organization is conducting similar surveys in other Indian states, including Tamil Nadu and Maharashtra, to assess the broader impact of gaming regulations on user behaviour and market dynamics across the country.
The survey employed non-probability sampling, combining purposive sampling, snowball referrals, and a pre-verified database developed through earlier studies on online gamers. Respondents qualified if they had played real-money games at least once before September 1, 2025.
The research highlights a critical policy challenge: rather than reducing gaming-related risks, the prohibition appears to have pushed users toward unregulated offshore markets with reduced transparency, increased exposure to financial and behavioural risks, and greater time and money spent on platforms operating outside consumer protection frameworks.
Source: CUTS International
