In India, the implementation of a comprehensive ban on domestic real-money gaming has inadvertently encouraged players to shift their activities to offshore platforms. This development was highlighted in a recent report by the Consumer Unity & Trust Society (CUTS) International, which found that a considerable number of Indian gamers, previously active on local sites, are now engaging with foreign-based gaming entities. The shift poses significant regulatory and market implications, as these offshore sites operate outside India’s jurisdictional reach, raising concerns about consumer protection and regulatory oversight.
The report provides a detailed examination of the impact of the ban through a survey conducted with 3,000 former users from Delhi NCR, Tamil Nadu, and Maharashtra. It reveals a substantial increase in offshore gaming participation following the enactment of the Prohibition of Online Gaming (PROG) Act. According to the findings, the rate of offshore gaming has climbed to 82% in Delhi NCR, 83% in Tamil Nadu, and 92% in Maharashtra. Amol Kulkarni, Director of Research at CUTS International, emphasized that the current prohibition results in a mere geographical shift rather than a reduction in gaming activities. He advocates for a balanced regulatory framework that addresses consumer protection concerns.
The research indicates that high-intensity gaming activities have also moved offshore. Prior to the ban, frequent gaming and higher spending were largely confined to regulated Indian sites. However, the report notes a dramatic increase in daily gaming sessions on offshore platforms, which have surged from 2–3% to over 40%. Additionally, prolonged gaming sessions and high-spending habits, particularly those involving expenditures of ₹25,000 or more per month, have significantly increased on these foreign platforms.
The ban has also heightened risks for young and financially vulnerable users. The CUTS report highlights a surge in offshore gaming among the 18-24 age demographic, with many young adults and low-income gamers now participating on unregulated sites. These platforms lack mechanisms for grievance redressal and do not adhere to any consumer protection laws, placing players in precarious situations. The study found that many users encountered minimal difficulty in accessing these sites, facilitated by communication channels such as Telegram and WhatsApp, and continued using mainstream payment systems like UPI to fund their accounts.
As the report outlines, the current strategy of banning domestic real-money gaming has not yielded the expected results, as consumers simply migrate to unregulated offshore sites. These foreign entities operate independently of Indian legal frameworks, which means they do not offer consumer protection or mechanisms for responsible gaming and dispute resolution. Consequently, CUTS International calls for a shift from outright prohibition to a regulated approach that incorporates consumer safety measures and proper monitoring of gaming activities.
In summary, the failure of the ban to curtail gaming activities underscores the need for a reassessment of India’s approach to real-money gaming in the digital sphere. The current situation, where a significant portion of gaming occurs on offshore platforms, increases the risks to consumers and highlights the necessity for a strategic pivot toward regulation. Moving forward, this issue is likely to prompt further discussions on the need for comprehensive regulatory reforms to better protect Indian gamers and address the challenges posed by the unregulated offshore market.
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