Offshore betting in India grows 20% after RMG ban
A new study by the public policy think tank CUTS International revealed that the use of offshore betting platforms in India increased significantly following the enforcement of the ban on real money gaming (RMG). According to the report, participation in foreign sites rose from approximately 68.3 percent to 82 percent, confirming that the activity did not decrease but rather shifted to unregulated options.
The research was conducted based on a survey of 1,000 former RMG users in the Delhi region and the National Capital, analyzing behavioral changes before and after the implementation of the Online Gaming Promotion and Regulation Act 2025, which came into effect on October 1, 2025.
Migration to unregulated platforms
The study concludes that, in the absence of regulated domestic alternatives, players redirected their activity to offshore operators. According to Sohom Banerjee, senior researcher at CUTS International, many users were already using foreign platforms before the ban, but now they concentrate all their spending there.
“What changed was not the interest in gaming, but the place where users play and spend their money,” Banerjee noted. According to the analysis, those who previously divided their budget between local and foreign platforms now channel all their consumption to offshore sites.
Increase in monthly spending
The report also detected a significant change in spending levels. After the ban, the percentage of users spending between 5,000 and 9,999 rupees per month grew from 7.6 percent to 26.2 percent. Additionally, 13.5 percent of respondents declared spending more than 10,000 rupees monthly, a segment that practically did not exist before the ban.
Participants attributed this increase to factors such as ease of access, familiar payment methods, the use of bank transfers and UPI, as well as attractive promotions offered by foreign operators.
Higher frequency and usage time
The survey also showed a notable increase in the frequency and duration of gaming sessions. The number of users accessing offshore platforms daily rose from 3.4 percent to 42 percent. Likewise, the proportion of players spending more than two hours per session increased from 3.4 percent to 44 percent, indicating a much more intense level of involvement.
These data suggest that the phenomenon is not limited to a simple platform shift but to more frequent and prolonged use of unregulated services.
Legal and enforcement challenges
The migration to offshore operators poses serious regulatory difficulties. According to corporate lawyer Divya Sharma, the Indian legal framework lacks tools to effectively control foreign companies, preventing the enforcement of consumer protection rules, KYC, and anti-money laundering measures.
According to Sharma, many of these sites use mirror domains and virtual private networks to evade blocks, further complicating any legal action. The expert warned that effective regulation would require new laws with extraterritorial reach and international cooperation agreements, elements that do not currently exist.
Economic impact on the local industry
The shift to offshore platforms also has economic consequences. iGaming strategist Japneet Singh Sethi pointed out that, although demand remains high, the ban severely affected the local ecosystem, especially small and medium operators.
“The impact is seen not only on operators but also on associated sectors such as affiliates, media, influencers, and sponsorships, where layoffs and revenue losses have already been recorded,” Sethi explained.
Risks for consumers and regulatory debate
The CUTS International report also warns about the risks for users operating on unregulated platforms, where there are no clear protection mechanisms or formal channels to resolve disputes. The increase in frequency and duration of gaming could also raise exposure to problematic behaviors.
For Banerjee, the results reinforce the need for a balanced regulatory approach. “It is key to protect consumers without pushing them toward less regulated alternatives,” he concluded.
The study highlights that, without a clear and functional regulatory framework, the RMG ban did not reduce gaming in India but rather strengthened the growth of the offshore market and expanded challenges for user protection and tax collection.
Tags: India, online betting India, India betting regulation