India: Online gambling ban accelerated the growth of the offshore market

25.12.2025
The ban on online gambling in India (the PROGA law) did not reduce player participation but instead sharply increased the shift of users to offshore operators. A study by CUTS International records growth in engagement, spending, and daily activity already in the first months after the restrictions were introduced.
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The data is based on a survey of 1,000 players in the Delhi region and shows that the market has moved out of regulated control.

What happened to the market
🔵 The share of players using offshore operators increased from 68.3% to 82.0%
🔵 24.7% of respondents started playing on offshore platforms after the ban
🔵 The legal online market has effectively disappeared for players

Player behavior and spending
🔴 The share of daily players rose from 3.4% to 42.3%
🔴 44% spend more than two hours per gaming session
🔴 38.3% access games more than five times a day
🔴 Spending structure shifted toward larger deposits: 26.2% — $ 60−120, 7.2% — $ 120−300, 6.3% — over $ 300

How players bypass the ban
🔵 The main access channel is closed groups in messaging apps
🔵 Mirrors and pre-saved QR codes are used as auxiliary tools
🔵 Blocking measures proved technically ineffective

Economic impact on India
🔴 $ 845 million — player deposits diverted to the offshore segment
🔴 $ 236 million — lost tax revenues
🔴 6,500 jobs lost in the first months

Legal context
🔵 The ban was introduced through the PROGA law, adopted without full public discussion or market participation
🔵 The law does not distinguish between games of chance and games of skill (rummy, fantasy sports)
🔵 The Supreme Court of India has postponed the hearing on the constitutionality of PROGA until January 2026
🔵 The offshore segment continues to grow amid the complete halt of the legal market

Conclusions
The online gambling ban did not reduce demand — it merely redirected it. Instead of protecting players, India faced the expansion of offshore platforms, increased risky behavior, and a loss of tax revenues. The judicial pause only entrenches this imbalance and prolongs the period of regulatory vacuum.