Indian Gaming Ban Drives Players to Unregulated Offshore Sites

In September 2025, the Indian government’s ban on real-money interactive online gaming led to a notable shift in player behavior, as revealed by a recent survey from CUTS International, a customer protection organization. Rather than decreasing participation, the ban has driven players toward unregulated offshore gaming sites. The study surveyed 1,000 former gambling customers in the Delhi NCR region and found that offshore gambling activity increased from 68.3% before the ban to 82% afterward, marking a significant rise in offshore gambling participation by 20%.

The survey also highlighted that about 25% of participants switched to using offshore platforms exclusively. This shift suggests that the ban directly caused a migration to unregulated sites, as licensed operators ceased domestic operations. The sudden preference for offshore platforms underscores the lack of impact the ban has had on reducing interactive gaming participation overall.

Expenditure patterns on these platforms have also escalated. Before the ban, only 7.6% of gamblers spent between INR 5,000 (US$55) and INR 9,999 (US$120) on offshore platforms. After the ban, this figure surged to 26.2%. Moreover, 13.5% of respondents reported spending more than INR 10,000 (over US$120), indicating not just a switch in platforms but an increase in spending. These findings suggest that, contrary to the intended effect of reducing gaming outlay, players are allocating similar or greater resources to unregulated offshore services.

Further analysis of the survey data reveals a significant increase in engagement frequency and duration on offshore platforms. Daily usage of these betting sites soared from 3.4% to 42%, while the time spent on them for more than two hours increased from 3.4% to 44%. These figures indicate that the ban has not diminished gamblers’ enthusiasm but instead redirected it to platforms lacking consumer protection and responsible gambling practices.

CUTS International’s analysis suggests that the ban has not reduced demand for betting but has shifted where and how people engage in these activities. This shift raises serious concerns about consumer welfare, as offshore sites are beyond the reach of Indian regulatory frameworks.

In light of these findings, CUTS International is expanding its research to other Indian states to determine if similar trends in offshore gambling participation are occurring nationwide. The outcome of this expanded survey could provide further insight into the national impact of the ban and the movement towards international waters.

The effectiveness of the gaming ban in India remains in question. While the intended goal was to discourage gaming participation, the ban has inadvertently redirected it to platforms not subject to Indian consumer protection laws. This unintended consequence suggests an increase in gaming participation intensity, with players engaging more frequently and spending more than before.

The results of this survey raise critical questions about the effectiveness of prohibition as a method for managing gaming activity, especially when there’s an existing demand and alternative options are readily available on the international stage. The complexities of regulating gaming in a globally connected world are evident, as the Indian ban seems to have amplified rather than curtailed gaming activities.

As the debate over the ban’s effectiveness continues, some argue that regulation rather than prohibition might be a more viable strategy. By regulating online gaming, authorities could impose consumer protection measures, ensuring a safer gambling environment. Others, however, maintain that the ban is a necessary step toward curbing potential social harms associated with gambling.

Ultimately, the issue highlights the challenges regulators face in balancing consumer protection with the realities of a digital, interconnected economy. The Indian government’s approach may need re-evaluation to address both the demand for gaming and the need to protect consumers effectively.

The story of India’s gaming ban serves as a case study in the complexities of regulating online activities in today’s world, where national restrictions can often be circumvented through global alternatives. As the situation unfolds, it provides valuable lessons for policymakers worldwide on the implications of prohibition and the importance of considering consumer behavior in regulatory decisions.

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