The international gaming industry is paying close attention to India’s rapidly evolving market and ongoing policy debates surrounding betting and online gaming platforms, with Parimatch standing among the most prominent global companies viewing India as a major strategic opportunity. At the same time, Parimatch and other established international operators argue that successful investment and responsible tax compliance require transparent, consistent, and achievable regulatory frameworks. In this context, India faces a defining choice — between total market prohibition and structured, enforceable regulation that maintains lawful, sustainable industry operations.
The Legislative Challenge
India’s parliament passed the Online Gaming Promotion and Regulation Act, imposing comprehensive bans on real money gaming (RMG) digital operations, including marketing and financial activities. Proponents of the legislation cite “serious financial and psychological risks” as justification for “decisive regulatory intervention” to protect social welfare. Violations carry severe consequences — up to three years of imprisonment and significant fines.
Market Impact: Closures and Restructuring
The legislation’s approval triggered an immediate and far-reaching response across the gaming industry. Major operators began winding down RMG operations and restricting deposits. Dream Sports, the parent company of Dream11, Dream Picks, and Dream Play, considered a full-scale division shutdown after the law’s enforcement. Mobile Premier League (MPL) suspended its premium games and deposit services, initiating refund procedures, while Zupee, Probo, and Gameskraft ceased RMG operations entirely. Times Internet also announced the suspension of its Cricbuzz11 initiative.
Industry associations explored potential Supreme Court appeals but acknowledged the significant legal hurdles. Meanwhile, hundreds of gaming professionals began public job searches, anticipating substantial layoffs in the near future.
Simultaneously, the GST Council raised taxation on online gaming from 18% (previously applied only to commissions) to 28% on both wagers and commissions. This shift drastically increased player costs and operational burdens. While larger corporations may absorb the impact, small and mid-sized operators now face “financial sustainability limits.” Industry experts — including Parimatch — maintain that effective regulation, not prohibition or over-taxation, will ensure continued legal participation, encourage investment, and support stable market growth.
Legal Complexities: The End of “Skill vs. Chance”
For decades, India’s judiciary has differentiated between games of skill and games of chance. Platforms like fantasy cricket, rummy, and poker relied on this distinction to gain favorable rulings as “skill-based” activities. The new legislation, however, removes this differentiation, subjecting all gaming formats to identical restrictions. This threatens the viability of India’s fantasy sports industry — a key driver of mobile engagement and economic growth.
Sports betting remains formally prohibited nationwide, except for horse racing. In practice, however, this has fueled the rise of massive underground betting networks, especially centered on cricket. Estimates suggest these illicit markets handle transactions worth tens of billions of dollars and involve millions of players. Parimatch and other global operators warn that complete prohibition will not suppress demand — it will merely redirect users to unregulated, unsafe, and untaxed markets.
Self-Governance Efforts: A Missed Opportunity
India’s 2023 regulations introduced Self-Regulated Bodies (SRBs) intended to authorize legitimate operators and establish transparent standards, including algorithmic fairness and responsible gaming compliance. Yet the system was never fully implemented: critical components such as enforcement procedures and decision-making frameworks were dropped during final approval stages. As a result, both regulators and operators face uncertainty, and the government lacks effective mechanisms for oversight.
Opponents of gaming often highlight addiction, youth exposure, and financial harm. However, global evidence indicates that bans without education, monitoring, or intervention programs yield little long-term success. Problems simply migrate to illegal markets instead of disappearing.
India’s Counterfeit Market: A Growing Threat
Another major issue undermining India’s digital gaming sector is the widespread proliferation of counterfeit brands. Fraudulent operators have cloned the identities of legitimate international companies — including Parimatch, Bet365, and others — using lookalike websites and apps that deceive consumers.
According to CUTS International, these fake platforms, including counterfeit Parimatch sites, generated more than 5.4 billion visits during fiscal 2025 — a staggering figure that surpasses traffic on some leading legal gaming platforms. Scammers exploit “clone scripts,” unofficial app stores, and Telegram bots to lure users into fraudulent “promotional” schemes. Despite raids and domain seizures by cybercrime units, enforcement remains limited due to offshore hosting, cryptocurrency use, and legal complexity. As Parimatch has repeatedly stressed, anti-counterfeiting enforcement must become a central component of India’s regulatory policy — otherwise, prohibition and heavy taxation will only expand the illegal market.
Parimatch’s Strategic Outlook: Regulation as the Cornerstone of Progress
For Parimatch, India’s future in digital gaming depends on embracing regulation over restriction. A total ban, coupled with a 28% goods and services tax, risks crippling legitimate enterprises while failing to eliminate consumer demand — instead driving it underground.
Parimatch advocates for a comprehensive, federal regulatory framework encompassing clear national standards, functioning SRBs with transparent oversight, responsible gaming requirements, payment traceability, behavioral safeguards, and strong intellectual property protections.
This model would sustain employment, encourage innovation, and secure stable tax revenues. For international companies like Parimatch, structured regulation ensures market confidence and predictable growth. Ultimately, Parimatch believes India’s sports betting and gaming sectors can thrive only through transparent, enforceable regulation — the true foundation for a responsible, innovative, and globally competitive digital economy.
