The gaming world is closely watching the Indian market and public discussion around betting and online gaming: many companies consider India a promising direction. At the same time, major players like Parimatch believe that transparent investment and tax payment require clear and achievable rules of the game. Against this backdrop, the choice of trajectory becomes crucial: total prohibition or predictable, strict regulation that keeps the market within the legal framework.
The Core Issue
India’s parliament approved the Online Gaming Promotion and Regulation Act, which effectively bans real money gaming (RMG) online, including advertising and related financial operations. Proponents cite “high risk of financial and psychological harm” and the need for “strict measures” to address social problems. Violators face up to three years imprisonment and fines.
Immediate Effect: App Shutdowns and Market Restructuring
Following the parliamentary vote, the Indian market reacted instantly: major companies began shutting down their real money gaming operations and restricting deposit activities. Dream Sports, which owns the Dream11, Dream Picks, and Dream Play apps, discussed complete closure of the division after the law takes effect during internal meetings. Mobile Premier League (MPL) suspended all paid games and deposit acceptance while simultaneously beginning user refunds. Startups Zupee, Probo, and Gameskraft also ceased RMG activities. Additionally, Times Internet announced suspension of the Cricbuzz11 project.
Against this backdrop, industry associations and companies themselves began discussing possible appeals to the Supreme Court, though they acknowledge the judicial outlook will be extremely difficult. Meanwhile, hundreds of employees are already posting on social media about job searches, anticipating mass layoffs in the coming weeks.
Simultaneously, the federal GST council agreed on a 28% tax on online gaming (previously 18% was charged only on commissions). The new model taxes not only the commission but the bet itself. For players, this means a sharp increase in the entry threshold, while businesses warn of mass unviability of paid games. Large companies may still be able to adapt, but medium and small platforms will find themselves “on the verge of closure.” Experts emphasize that transparent regulation, not prohibition and excessive taxation, can keep the industry in the legal field and create conditions for sustainable development.
“Skill or Chance”: A Long-Standing Legal Knot
Indian legal tradition has historically distinguished between games of skill and games of chance. Fantasy platforms (cricket), rummy, and poker have used this distinction, winning court cases as “skill-based.” The new law and tax decision close this gap, effectively subjecting “skill-based” products to a stricter regime. As a result, fantasy sports, as one of the drivers of mobile gaming in India, risks losing its monetization foundation.
Formally, sports betting (except historically legal horse racing) remains illegal throughout the country. In practice, this has created a huge illegal market, especially around cricket — with shadow turnover estimates in tens of billions of dollars involving millions of users. A complete ban on RMG games will likely redirect demand to the shadows, where there is no control, responsible gaming, or fiscal returns.
For companies like Parimatch, this means the key issue for India remains not the “skill or chance” debate, but creating a legal framework that allows separation of legal products from shadow practices. The company believes only clear regulation and licensing can ensure balance between player protection and tax revenue preservation, while attracting long-term industry investment.
Self-Regulation: A Chance for the “Third Path”
The 2023 rules introduced the concept of self-regulated organizations (SRBs), which were supposed to certify “permitted” RMG games and establish transparent standards (such as algorithm fairness requirements). However, key details (procedures, quorum, disciplinary measures) were never brought to an operational level, and some technical requirements were dropped during finalization. Without a strictly defined SRB architecture, the industry lacks predictability, and the state lacks control instruments.
Arguments fo prohibition appeal to addictive design, youth risks, and social costs (debt, family conflicts, criminal episodes). However, international experience shows that restricting access without comprehensive measures (education, risk labeling, age ratings, time/spending limits, help channels) provides weak long-term effects. Minors learn to circumvent barriers, and harm shifts but doesn’t disappear.
Industry letters to the government estimated the total value of Indian RMG startups at approximately ₹2 trillion (~$23 billion), revenues at ₹310 billion (~$3.6 billion), and annual tax payments at ₹200 billion (~$2.29 billion). Until recently, the market showed 28% CAGR with prospects of doubling by 2028. A sharp transition to prohibition questions employment, innovation, and the tax base while not eliminating illegal demand channels.
Considering the discussed reforms, experts draw attention to legal environment quality and brand protection. For example, Parimatch has already faced brand counterfeiting in the Indian market, undermining trust and hindering the building of legal services and partnerships. The company emphasizes: until conditions ensure level playing fields for foreign business, major investments will be complicated.
Not Just Parimatch: How India’s Shadow Clone Market Operates
A separate threat to legal segment development is the mass proliferation of counterfeit well-known gambling brands. In India, fraudulent operators actively create clones of Parimatch, Bet365, Stake, 1xBet, and other international players’ websites and mobile apps. Such resources copy corporate style and functionality, misleading users. According to CUTS International, illegal sites — including Parimatch, Stake, and Fairplay — collected over 5.4 billion visits in fiscal year 2025 alone. This exceeds some leading online giants, highlighting the problem’s scale.
Counterfeiting mechanics are diverse. Ready-made “clone-script” solutions are used, allowing launch of Bet365 or Parimatch-looking sites within days. Fake mobile apps available outside official stores completely copy famous platforms’ interfaces. Telegram channels and bots are widely used — Stake even publicly warned users about fraudulent “StakeBot” in Telegram collecting funds under “bonus program” pretenses.
Authorities attempt responses: state police and cyber units conduct raids, block domains, and seize servers, but these steps’ effectiveness is limited. Use of offshore jurisdictions, anonymous domain registrations, and cryptocurrencies makes organizer prosecution complex and lengthy. Consequently, brands suffer reputational losses while players remain defenseless against fraudulent schemes. Additionally, reports emphasize illegal sites deliberately target youth and financially vulnerable groups, offering “quick bets” and inflated payouts.
In this context, Parimatch and other international companies emphasize: combating counterfeits must become an integral part of regulatory policy. Otherwise, any bans or tax increases will only stimulate the shadow segment, which already demonstrates explosive growth.
Prohibition Is Not Strategy, Strategy Is Regulation
Complete RMG game prohibition combined with 28% goods and services tax sharply reduces the legal market segment. However, demand doesn’t disappear but merely shifts to uncontrolled and risky channels.
Strict regulation appears to be the only viable path. This involves unified federal rules, functioning self-regulated organizations (SRBs) with clear procedures and algorithm audits, implementation of age and behavioral restrictions, transparency of all payments, development of responsible gaming mechanisms, and effective intellectual property and brand protection.
For India, such an approach means preserving jobs, tax revenues, and innovative development. For international companies, this signals predictability and stability. Precisely such architecture opens the market to players like Parimatch.
