Industry bodies and gaming companies have highlighted their concerns over the rapid rise of offshore betting platforms targeting Indian users, as the government prepares to notify the final Promotion and Regulation of Online Gaming Rules, 2025, in a few weeks. Executives told FE that the new framework is critical to restoring regulatory balance after a large number of users migrated to overseas platforms following last year’s ban on domestic real money games.
According to people familiar with the matter, the rules are expected to sharpen enforcement against offshore betting and money gaming platforms that operate or monetise services in India while remaining beyond the reach of domestic law. A government official said around 2,500 offshore real-money gaming platforms have already been blocked. These platforms are typically based outside India but are accessible to domestic users.
The official said Indian developers remain free to build and export such games for overseas markets, but foreign betting and money gaming platforms operating in India will not be permitted. “That distinction is central to the final framework,” the official added.
The rules, to be notified by the ministry of electronics and information technology (MeitY), follow a public consultation process that drew nearly 2,500 responses from industry, academia and other stakeholders. Officials said the submissions highlighted gaps in enforcement, especially against offshore entities, and the need for clearer consumer safeguards.
Enforcement and Safeguards
Under the final framework, a formal code of practice is expected to be introduced, including age-based protections and content classification norms, alongside standardised compliance obligations for platforms. Policymakers have also sought to clarify liability. Individuals playing money games will be treated as victims rather than offenders, with enforcement action focused on owners and operators of prohibited games that are run or monetised in India, including offshore entities. Developers who only build games, without operating them domestically, will not be held liable.
Offshore Migration
Industry executives say the offshore challenge has intensified since the domestic ban. A survey by CUTS International of users in the Delhi-NCR region showed that offshore platforms accounted for just 3.4% of daily play before the ban, but their share jumped to 42.3% after the restrictions came into force in August last year.
Revenue leakage and consumer risk have been key industry arguments. The All India Gaming Federation has previously estimated that illegal offshore betting platforms cost India about $2.5 billion annually in lost GST revenue, while also exposing users to addiction, financial distress and weak grievance redressal.
Government officials, however, said revenue considerations have not been the primary driver of policy. While assessing the fiscal impact of the ban, MeitY officials said that GST losses were substantial but these were outweighed by social costs, including reported cases of suicide linked to gaming losses.
GST collections from online gaming had surged after the GST Council imposed a 28% levy in 2023, rising over 400% from Rs 1,349 crore to Rs 6,909 crore within six months. Under the draft rules, online games are formally classified into social games, e-sports and real money games.