Offshore Gambling Activity Climbs Following India’s RMG Ban

India’s prohibition on online real-money gaming has been followed by a marked rise in offshore betting activity, according to a survey of former players in the Delhi National Capital Region. Instead of reducing gambling participation, the policy appears to have redirected users toward unregulated foreign platforms, where spending and engagement have increased.

The survey, conducted by CUTS International among 1,000 former online real-money gaming users in Delhi NCR, examined behaviour before and after the Promotion and Regulation of Online Gaming Act, 2025, came into effect. Based on self-reported responses, the findings highlight changes in platform access, spending levels, and time spent gaming.

“The indications from the Delhi NCR survey point to a strong migration towards offshore betting platforms, since the prohibition on online real money gaming in India. We are seeing almost one in four surveyed RMG users migrating toward offshore betting platforms, with increased frequency and duration of engagement with offshore platforms compared to pre-ban patterns. These observed behavioural changes represent an unintended consequence of the policy that warrants examination” said Mr. Amol Kulkarni, Director (Research), CUTS International on the survey’s findings.

Offshore access and spending rise

Before the ban, 68.3 percent of respondents used offshore betting platforms. After the ban, that figure increased to 82 percent. One in four users reported starting offshore betting only after the prohibition, while 57.3 percent continued their use, indicating a sustained shift.

Sohom Banerjee, Senior Research Associate at CUTS International, said the change reflects redistribution rather than new demand. “The survey indicates that users were already participating in real-money gaming earlier, both on domestic platforms and offshore ones. What appears to have changed is the distribution of where they play and spend, not necessarily the overall appetite for gaming.”

Monthly spending has moved into higher brackets, with the share of users spending ₹5,000–₹9,999 rising from 7.6 percent to 26.2 percent, while 13.5 percent now spend above ₹10,000.

Regulatory gaps and industry consequences

Legal experts warn that the move offshore creates enforcement challenges. Corporate lawyer Divya Sharma noted that foreign operators fall outside India’s current jurisdiction. “Offshore operators sit outside India’s regulatory reach without new laws and international cooperation.”

She added that regulators struggle to apply domestic safeguards. “The offshore platforms remain accessible because they evade Indian KYC/AML norms and use VPNs or mirror domains to stay online,” she said, calling it “extremely difficult to prosecute offshore operators under Indian law.”

The shift has also affected the domestic gaming industry. iGaming strategist Japneet Singh Sethi said smaller operators and related sectors have borne the brunt of the ban. “The decision to ban definitely shattered a lot of Indian investors’ dreams to build something valuable and unique.”

He warned that without a clear framework, offshore growth may continue. “Offshore has been growing consistently and that’s a fact,”Sethi said, adding that regulated reinstatement could restore oversight and revenue. “If the government decides to overhaul the entire industry, this will ensure proper registration and compliance for operators and will open up additional revenue streams for government in the form of licence costs and taxes.”

Source:

“India offshore betting up 20% after RMG ban: Report”, cuts-ccier.org