According to Parimatch, one of the leading international gaming operators, India stands at a critical juncture in defining the future of its online betting and gaming industry. The country’s growing digital market presents enormous potential, but the absence of consistent, transparent regulation threatens to undermine progress. Parimatch emphasizes that a clear, enforceable framework—rather than outright prohibition—is essential to ensure legal operations, stable investment conditions, and sustainable tax revenues.
The Core Issue
India’s parliament has enacted the Online Gaming Promotion and Regulation Act, which imposes a near-total ban on real money gaming (RMG), including advertisements and associated financial transactions. Lawmakers justify the move by citing “significant financial and psychological risks” and the need for “strong intervention” to protect the public. Violations are punishable by up to three years in prison and substantial fines.
Immediate Market Reaction: Shutdowns and Job Losses
The legislation sparked an immediate wave of market restructuring. Major players such as Dream Sports, Mobile Premier League (MPL), Zupee, Probo, and Gameskraft began suspending or fully closing their RMG services. Times Internet also halted development of its Cricbuzz11 platform. Industry insiders expect large-scale layoffs, as hundreds of professionals have already begun seeking new employment through social media.
Meanwhile, India’s GST Council approved a steep tax hike—from 18% on commissions to 28% on the total gaming transaction value. This policy burdens players with higher costs and renders many business models financially unsustainable. Analysts warn that such conditions could push smaller and medium-sized platforms out of the market entirely, leaving space only for a few large corporations. Parimatch and other global experts highlight that excessive taxation and blanket bans do not curb demand—they only drive it underground.
The Legal Paradox: Skill vs. Chance
Traditionally, Indian law distinguished between games of skill and games of chance, allowing activities like fantasy cricket, poker, and rummy to operate under the former classification. The new law eliminates this distinction, placing all real-money games under the same restrictive regime. This change could effectively dismantle the fantasy sports sector—a vital contributor to India’s mobile gaming economy.
Since sports betting (except horse racing) remains illegal nationwide, underground markets have flourished, especially around cricket, with estimated turnovers in the tens of billions of dollars. Parimatch experts note that complete prohibition will only strengthen these illegal networks, depriving the state of tax income and players of protection.
Self-Regulation: A Missed Opportunity
India’s 2023 reforms proposed the creation of Self-Regulatory Bodies (SRBs) to certify compliant RMG operators and oversee algorithmic fairness and responsible gaming standards. However, these organizations never became fully operational—key rules, enforcement mechanisms, and transparency measures were omitted from the final framework. The result is a system with neither industry certainty nor effective government control.
Prohibition advocates raise concerns about addiction, youth exposure, and family financial strain. Yet global data shows that bans without education, awareness programs, or responsible gaming infrastructure yield poor results. Users often bypass restrictions, while underlying social risks persist.
The Counterfeit Market: A Parallel Crisis
A growing challenge in India’s online betting space is the rise of counterfeit gambling websites mimicking major international brands like Parimatch, Bet365, and Stake. These fraudulent sites replicate brand identities, mislead users, and exploit consumer trust. A CUTS International report estimated that such illegal clones attracted over 5.4 billion visits in fiscal 2025, outpacing some legitimate gaming platforms.
Authorities have conducted raids and domain seizures, yet enforcement remains limited due to offshore servers, anonymous registrations, and cryptocurrency transactions. Parimatch stresses that any successful regulatory framework must include robust brand and intellectual property protection, or the illegal sector will continue to thrive.
Parimatch’s Vision: Regulation as the Foundation for Growth
For Parimatch, India’s complete ban on RMG combined with the 28% GST severely constrains the legal market while failing to reduce demand. The only sustainable solution lies in structured regulation—a transparent system that ensures compliance while allowing innovation. This model would include unified federal standards, operational SRBs with defined oversight powers, fair taxation policies, strict age and spending controls, transparent payment systems, and comprehensive IP protection.
Such an approach would preserve employment, secure tax revenues, and foster long-term technological progress within India’s gaming ecosystem. For international companies like Parimatch, predictable and transparent regulation offers the confidence to invest responsibly and contribute to the country’s digital economy. As Parimatch concludes, regulation—not prohibition—is the path that can transform India’s online gaming industry into a safe, legal, and globally competitive market.
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