The Ban That Backfired: India's Online Gaming Ban Leaves Users Vulnerable

The Indian government's ban on online real-money games in 2025 had an unintended consequence: a significant surge in offshore gambling usage. According to a survey by CUTS International, a consumer organization, the survey suggests a 20% increase in offshore platform usage among Indian users. This shift was marked by increased spending and engagement on these platforms.

Prior to the ban, 68.3% of users accessed offshore platforms, but this number jumped to 82% after the prohibition took effect. Furthermore, a quarter of respondents reported using offshore platforms for the first time after the ban was implemented. This indicates that the ban pushed users towards unregulated offshore markets.

The survey, which sampled 1,000 former real-money gaming users in Delhi NCR, found that spending habits changed dramatically post-ban. The share of users spending between ₹5,000 and ₹9,999 per month (approximately $60 to $120 USD) rose from 7.6% to 26.2%. Additionally, 13.5% of users began spending over ₹10,000 ($120+) per month, a category that did not exist before the ban.

Daily access to offshore platforms also increased significantly, rising from 3.4% to 42%. Moreover, the proportion of users spending more than two hours per session on these platforms surged from 3.4% to 44%. This suggests that users are not only migrating to offshore platforms but also engaging with them more intensely.

The survey's findings have significant implications for policymakers. Instead of reducing gambling risks, the ban appears to have driven players into unregulated offshore markets with less transparency and greater exposure to financial and behavioral risks. The increased spending and engagement on offshore platforms indicate a deeper involvement in high-risk activities.

CUTS International noted that similar surveys are being conducted in other Indian states to assess the broader impact of the ban on user behavior and market dynamics. The organization's research aims to inform policy decisions and ensure that regulatory measures effectively address the concerns associated with online gaming.

The ban on online real-money games was implemented to curb the perceived negative impacts of online gaming, such as addiction and financial distress. However, the findings suggest that while the regulation aimed to curb risks, it may have contributed to a shift toward offshore platforms, where users face fewer consumer protections and operate outside domestic oversight.

The survey's findings highlight the need for a more nuanced approach to regulating online gaming. Rather than imposing a blanket ban, policymakers should consider implementing measures that promote responsible gaming practices and protect users. This could include regulations that require offshore platforms to adhere to Indian laws and provide adequate consumer protection.

In response to the ban, some online gaming platforms have begun to offer alternative products and services. For example, some platforms are now offering games that do not involve real-money wagering. However, these alternatives may not be enough to stem the tide of users migrating to offshore platforms.

The outcome of the survey and the subsequent research by CUTS International will be crucial in shaping the future of online gaming regulations in India. The findings of the survey and the recommendations that follow will provide valuable insights for policymakers and stakeholders. This, in turn, will help to ensure that regulatory measures effectively address the concerns associated with online gaming and promote a safer and more responsible gaming environment.