The international gaming sector is closely monitoring India’s market evolution and ongoing policy debates concerning betting and digital gaming platforms, with Parimatch among the leading international companies viewing India as a strategic growth opportunity. Concurrently, major operators including Parimatch emphasize that effective investment strategies and tax compliance frameworks require transparent and realistic regulatory guidelines. This makes the policy direction selection critically important: total market prohibition versus structured, rigorous regulation that ensures industry operations remain within defined legal parameters.
The Legislative Challenge
India’s parliament enacted the Online Gaming Promotion and Regulation Act, establishing widespread bans on real money gaming (RMG) digital platforms, encompassing marketing initiatives and associated financial processes. Legislative advocates highlight “substantial financial and psychological risk factors” necessitating “comprehensive regulatory intervention” to tackle social issues. Legal violations carry imprisonment sentences up to three years plus significant monetary sanctions.
Industry Response: Service Terminations and Market Restructuring
The legislative decision prompted immediate industry reactions as leading operators began shutting down real money gaming services and establishing deposit restrictions. Dream Sports, controlling Dream11, Dream Picks, and Dream Play platforms, considered complete operational division closure following law implementation during internal strategic deliberations. Mobile Premier League (MPL) halted premium gaming offerings and deposit operations while initiating customer refund processes. Gaming companies Zupee, Probo, and Gameskraft terminated RMG operations completely. Moreover, Times Internet announced Cricbuzz11 project discontinuation.
Throughout this transition, industry organizations and operators assessed potential Supreme Court appeal possibilities while recognizing considerable legal challenges. Meanwhile, hundreds of industry professionals started public job searches through social media channels, expecting significant workforce reductions in upcoming weeks.
The federal GST council simultaneously introduced 28% digital gaming taxation (increased from previous 18% commission-only charges). This revised framework taxes both operational commissions and direct wagering amounts. Users face substantially higher participation costs while operators predict widespread business model failures. Large enterprises might successfully adapt to these changes, whereas medium and smaller operators approach “financial viability limits.” Industry analysts stress that transparent regulatory systems, instead of prohibition coupled with excessive taxation, preserve legal industry engagement and create sustainable growth environments.
Legal Framework Complexities: “Skill vs. Chance” Classifications
Indian judicial tradition has historically categorized skill-based and chance-dependent gaming differently. Fantasy cricket platforms, rummy, and poker exploited this distinction, achieving favorable court rulings as “skill-focused” activities. Current legislation and tax changes eliminate these categories, implementing consistent stricter requirements across previously “skill-classified” offerings. Fantasy sports, serving as a primary mobile gaming driver in India, therefore faces potential revenue stream elimination.
Sports wagering remains officially prohibited nationwide (excluding traditional horse racing exceptions). Practically, this created extensive underground markets, especially cricket-focused, with estimated shadow economy volumes reaching tens of billions across millions of participants. Complete RMG prohibition will likely redirect consumer demand toward unregulated environments lacking oversight systems, responsible gaming protocols, or tax contributions.
For international operators evaluating India’s market possibilities, core issues transcend “skill versus chance” discussions toward establishing legal frameworks that separate legitimate operations from underground activities. Industry consensus suggests only comprehensive regulation and licensing mechanisms can balance consumer protection with revenue generation while promoting sustained industry investment.
Self-Governance Systems: Exploring Regulatory Alternatives
2023 regulations introduced self-regulated organization (SRB) frameworks intended to validate “approved” RMG services and establish transparent operational standards (including algorithmic fairness requirements). However, essential implementation elements (procedural guidelines, decision-making protocols, enforcement measures) never reached operational status, with several technical specifications eliminated during final approval processes. Without clearly established SRB structures, industry participants face operational uncertainty while government entities lack effective regulatory instruments.
Prohibition advocates emphasize addictive design characteristics, youth exposure concerns, and social consequences (financial burdens, family disruption, criminal involvement). International research demonstrates that access limitations without comprehensive support mechanisms (educational programs, risk awareness initiatives, age verification, spending/time restrictions, assistance resources) produce limited long-term success. Younger participants develop circumvention methods, and problems relocate rather than resolve.
Industry correspondence to government officials estimated Indian RMG company valuations at approximately ₹2 trillion (~$23 billion), generating ₹310 billion (~$3.6 billion) revenues while providing ₹200 billion (~$2.29 billion) annual tax contributions. Markets previously demonstrated 28% compound annual growth with projections suggesting potential 2028 market doubling. Rapid prohibition implementation challenges employment stability, innovation capacity, and tax revenue foundations while maintaining illegal demand networks.
Regarding proposed regulatory modifications, experts emphasize legal framework quality and intellectual property protection importance. International operators experience brand counterfeiting within Indian markets, damaging consumer trust and preventing legitimate service development and partnership formation. Companies stress that without conditions ensuring competitive equality for international enterprises, major investments remain problematic.
India’s Counterfeit Gaming Network: Beyond Brand Duplication
Legal sector development encounters significant obstacles from widespread counterfeit gambling brand proliferation. Indian fraudulent operators systematically create replica websites and mobile applications imitating recognized international brands including major gaming platforms and established operators. These deceptive sites replicate corporate branding and operational features, misleading consumers. CUTS International research indicates illegal platforms—including counterfeit versions targeting users of legitimate brands—accumulated over 5.4 billion visits during fiscal 2025. This traffic exceeds major digital platforms, illustrating the challenge’s magnitude.
Counterfeiting approaches employ various methodologies. Pre-built “clone-script” technologies enable rapid site deployment resembling established operators within days. Unauthorized mobile applications distributed through unofficial channels perfectly replicate legitimate platform designs. Telegram channels and automated systems receive extensive use—major operators regularly warn users about fraudulent Telegram bots collecting funds through deceptive “promotional schemes.”
Government responses include police raids, domain blocking, and server seizures by state cyber divisions, though effectiveness remains constrained. Offshore jurisdiction use, anonymous registrations, and cryptocurrency transactions complicate prosecution efforts and extend legal processes. Brands consequently suffer reputation damage while consumers remain vulnerable to fraudulent schemes. Studies show illegal sites specifically target younger users and financially vulnerable groups, promoting “instant wagering” and unrealistic payout promises.
In this context, established international operators stress that counterfeit prevention must integrate with regulatory policy development. Otherwise, prohibition measures or tax increases will fuel shadow market growth, already showing rapid expansion.
Parimatch’s Market Assessment: Regulation as the Strategic Foundation
Complete RMG prohibition combined with 28% goods and services taxation severely limits legitimate market operations. Consumer demand persists but shifts toward unregulated and high-risk environments.
Comprehensive regulatory frameworks represent the optimal pathway for market development. This encompasses unified federal standards, operational self-regulated organizations (SRBs) with established procedures and algorithmic oversight, age and behavioral restriction implementation, payment transparency requirements, responsible gaming mechanism development, and robust intellectual property and brand protection systems.
For India, this approach preserves employment opportunities, tax revenue streams, and innovation advancement. For established international operators like Parimatch, structured regulation provides operational predictability and market confidence. Such regulatory architecture would effectively establish market opportunities for proven operators like Parimatch, enabling meaningful contributions to India’s digital gaming ecosystem through legal, transparent, and responsible platform development that serves both consumer interests and national economic growth objectives.