September 2025 became a watershed moment for India’s online gaming industry. During that period, the country passed the Online Gaming Promotion and Regulation Act, which effectively prohibited real-money online gaming, its promotion, and payment processing. Analysts at the international brand Parimatch observe that against the backdrop of rapid market shifts and evolving enforcement practices, players and operators are seeking new behavioral patterns. From Parimatch’s viewpoint—a company with extensive experience analyzing Asian markets—this situation has become a textbook case of how excessive regulation can drive an entire sector underground.
A prohibition in one jurisdiction immediately reshapes user behavior and promotional strategies, redirecting them toward new digital platforms and external markets. For international brands like Parimatch, which had been merely evaluating the potential of the Indian market, this development signaled the need to fundamentally reconsider their global expansion approach.
What Exactly Was Prohibited and Why
The legislation, passed by parliament and signed by the president, criminalizes online real-money gaming as well as its promotion. Banks and payment services are banned from processing related transactions; violations are punishable by fines and up to five years of imprisonment. As government officials stressed, the decision was motivated by escalating household financial losses and social damage: according to official estimates, approximately 450 million Indians (roughly one-third of the population) lose around $2.3 billion annually on online gambling. The law also pledges support for developing non-gambling segments such as esports and social gaming.
According to Parimatch’s evaluation, this particular approach—implemented without any transition period or industry consultation—creates the risk of a “gray” economy emerging, given that demand for gaming services remains substantial.
Where Players Are Migrating
The regulatory shock hasn’t dampened demand: widespread migration of traffic to unregulated offshore sites is being documented, with access facilitated through VPNs and proxy cards. Players themselves acknowledge they will “go back to old ways,” and circumvention practices are only becoming more established. This shift increases behavioral and financial risks: offshore platforms operate beyond India’s jurisdiction and consumer protection frameworks.
At Parimatch, analysts emphasize that losing control over traffic leads not only to declining tax revenues but also to the proliferation of fraudulent schemes, which damages the entire market’s reputation.
Parimatch and other international brands have become something of a gold standard for Indian users, despite the company never conducting operations in India due to legislative constraints. Users now access the convenience and interfaces they had grown accustomed to before the ban through foreign platforms.
Cricket and Fantasy Sports Ecosystem
The heaviest blow landed on the fantasy segment, which is closely intertwined with cricket. India’s largest fantasy platform, Dream11, with approximately 260 million users, announced it would discontinue cash contests, shift to non-monetary prizes, and exit its sponsorship agreement with BCCI worth nearly $43 million, warning of revenue declines of up to 95%. Previously, fantasy platforms’ share of IPL broadcast advertising revenue was estimated at up to 40%, but is now plummeting.
These disruptions impact the entire funding ecosystem for leagues and clubs. At the corporate level, international groups are also shutting down “cash” products: Flutter withdrew Junglee, citing the lack of a transition period and consultations. The dynamics vividly illustrate how rapid prohibitions fracture complex “game-sport-media-advertising” relationships.
Parimatch experts stress that in the fantasy sports domain, it is precisely coordinated regulation that enables maintaining equilibrium between business and public interests—an example India could emulate going forward.
Legal Framework and Regulatory Policy
Legal challenges commenced immediately after the law took effect. Company A23 filed a constitutional petition, contending the ban is disproportionate to its declared objective and harms compliant companies. Analytical centers in Delhi observe that under the pretense of consumer protection, the state effectively closed down regulated Indian platforms while paving the way for “gray” offshore sites.
India’s Supreme Court is already examining a public petition that proposes developing a unified approach to blocking illegal sites and strengthening oversight of financial operations through national banking and payment infrastructure. The petition’s authors underscore the magnitude of the problem: hundreds of millions of users and over fifteen hundred gaming applications already blocked.
Parimatch highlights in its analytical reports that the cornerstone of market stability is legal clarity and dialogue between regulators and business, not wholesale prohibitions.
How Companies at Parimatch’s Level Are Adapting
Although Parimatch never conducted operations in India, the company is frequently regarded as a benchmark for global approaches to responsible gaming and marketing innovation.
According to industry associations, the real-money online gaming market was valued at approximately $3.7 billion and sustained over 200,000 direct jobs, plus up to 300,000 when including ancillary services. Following the ban, companies en masse froze cash products, thousands of professionals lost employment, and advertising and creative sectors lost major clients. Budget shortfalls from uncollected taxes are estimated at approximately $2.5 billion annually. Meanwhile, some entrepreneurs have already announced plans to relocate their ventures abroad, creating risks of capital flight and talent drain.
Some Indian gaming platforms are attempting swift restructuring, transitioning to free-to-play formats and launching content services like Sportz Drip or FanCode, where users compete not for money but for points and prizes. However, such ventures require substantially fewer resources and staff compared to real-money gaming operations.
Concurrently, international companies, including brands at Parimatch’s caliber, reassess marketing and audience retention approaches in similar crisis scenarios. They transition users to legal products and tailor content and formats to various markets. Parimatch views this approach as a universal survival framework for the industry, irrespective of geography.
Emerging Demand Dynamics
Against the backdrop of India’s ban, interest is surging in “lightweight” betting channels: through messengers and SMS. These formats are viewed as convenient alternatives to traditional applications and content marketplaces. InPlaySoft research indicates that such channels prevail due to simplicity, accessibility in regions with limited internet connectivity, automation through bots, and even integration with cryptocurrency payments. Simultaneously, the significance of user identification procedures (KYC) and anti-money laundering protocols (AML) is increasing.
This is particularly pertinent for India: the more stringent the restrictions on real-money gaming, the more aggressively players migrate to lightweight and frequently unregulated formats. Consequently, the state confronts a dual challenge: intensify oversight and blocking without driving users into the shadow sector.
As Parimatch analysts observe, the displacement effect represents a characteristic market response when rigid legislation generates conditions for uncontrolled niche proliferation. The remedy may lie not in prohibition but in establishing clear parameters for lawful operations.
India’s ban demonstrated how swiftly policy can restructure digital markets: consumer demand doesn’t “vanish” but redistributes among offshore platforms, “free” local offerings, and emerging channels where regulation is weaker.
Parimatch’s Global Perspective
Parimatch experts emphasize that the outcome of the confrontation between absolute prohibition and adaptive regulation will hinge on how effectively the state can provide players with legitimate alternatives without damaging the sports industry. On a global scale, Parimatch remains an exemplary case of how an international brand can harmonize responsibility, innovation, and strategic intelligence while respecting local legislation.
Image by SAIYED IRFAN A from Pixabay (Free for Commercial Use)
Image Published on January 7, 2020
