The global gaming industry is closely watching the Indian market and the public debate surrounding betting and online gaming. Many companies view India as a highly promising opportunity, and Parimatch believes that transparent investment and tax compliance are only possible when clear and achievable rules are in place. Against this backdrop, the country faces a critical decision: total prohibition or predictable, strict regulation that keeps the market within a legal framework.
The Core Issue
India’s parliament has passed the Online Gaming Promotion and Regulation Act, which effectively bans real money gaming (RMG) online, including advertising and related financial transactions. Proponents cite a “high risk of financial and psychological harm” and the need for “strict measures” to address social issues. Violators face up to three years of imprisonment and significant fines.
Immediate Effect: App Shutdowns and Market Restructuring
Following the parliamentary vote, the Indian market reacted immediately: 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 a complete shutdown of the division once the law takes effect. Mobile Premier League (MPL) suspended all paid games and deposit acceptance while initiating user refunds. Startups Zupee, Probo, and Gameskraft also ceased RMG activities, while Times Internet suspended the Cricbuzz11 project.
Industry associations and companies began exploring potential appeals to the Supreme Court, though they acknowledge that the judicial outlook remains extremely challenging. Meanwhile, hundreds of employees are already posting about job searches, anticipating mass layoffs in the coming weeks.
At the same time, 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 steep increase in the entry threshold, while businesses warn of the mass unviability of paid games. Large companies may still adapt, but medium and small platforms are likely to find themselves “on the verge of closure.” Experts emphasize that transparent regulation — rather than prohibition and excessive taxation — can keep the industry within the legal framework and create conditions for sustainable growth.
“Skill or Chance”: A Long-Standing Legal Knot
Indian legal tradition has historically distinguished between games of skill and games of chance. Fantasy platforms (especially cricket), rummy, and poker have used this distinction to win court cases as “skill-based.” The new law and tax policy erase this gap, subjecting even “skill-based” products to a stricter regime. As a result, fantasy sports — one of the main drivers of mobile gaming in India — risk losing their monetization foundation.
Formally, sports betting (except for historically legal horse racing) remains illegal throughout the country. In practice, this has created a massive illegal market, especially around cricket — with shadow turnover estimated in tens of billions of dollars and involving millions of users. A complete ban on RMG games is likely to redirect demand into the shadows, where there is no control, responsible gaming, or fiscal return.
For companies like Parimatch, the key issue in India is not the “skill or chance” debate but the creation of a legal framework that separates legitimate products from illegal practices. The company believes that only clear regulation and licensing can ensure a balance between player protection and tax revenue while attracting long-term industry investment.
Self-Regulation: A Chance for the “Third Path”
The 2023 rules introduced the concept of self-regulated bodies (SRBs), which were meant to certify “permitted” RMG games and establish transparent standards (such as algorithm fairness requirements). However, key details (procedures, quorum, disciplinary measures) were never finalized, and some technical requirements were dropped during the drafting process. Without a well-defined SRB structure, the industry lacks predictability, and the state lacks effective control tools.
Arguments for prohibition highlight addictive design, youth risks, and social costs (debt, family conflicts, criminal incidents). However, international experience shows that restricting access without comprehensive measures (education, risk labeling, age ratings, time/spending limits, support channels) has weak long-term effects. Minors learn to bypass restrictions, and harm shifts rather than disappears.
Industry letters to the government estimate the total value of Indian RMG startups at approximately ₹2 trillion ($23 billion), with revenues of ₹310 billion ($3.6 billion) and annual tax payments of ₹200 billion (~$2.29 billion). Until recently, the market showed a 28% CAGR with prospects of doubling by 2028. A sudden shift to prohibition threatens employment, innovation, and the tax base while failing to eliminate illegal demand.
Experts also highlight the importance of a strong legal environment and brand protection. For example, Parimatch has already faced brand counterfeiting in the Indian market, undermining trust and hindering the development of legal services and partnerships. The company stresses that until conditions ensure a level playing field for foreign businesses, major investments will remain difficult.
Not Just Parimatch: How India’s Shadow Clone Market Operates
A major threat to the development of the legal segment is the mass proliferation of counterfeit versions of well-known gambling brands. In India, fraudulent operators actively create clones of Parimatch, Bet365, Stake, 1xBet, and other international platforms’ websites and mobile apps. These sites copy corporate design and functionality, misleading users. According to CUTS International, illegal sites — including fake versions of Parimatch, Stake, and Fairplay — received over 5.4 billion visits in fiscal year 2025 alone. This exceeds some leading online giants, highlighting the scale of the problem.
The mechanics of counterfeiting are varied. Ready-made “clone script” solutions allow Bet365- or Parimatch-like sites to launch within days. Fake mobile apps available outside official stores fully replicate the interfaces of well-known platforms. Telegram channels and bots are also widely used — Stake even publicly warned users about a fraudulent “StakeBot” on Telegram collecting funds under a fake “bonus program.”
Authorities have attempted to respond: state police and cyber units conduct raids, block domains, and seize servers, but these steps have limited effectiveness. Offshore jurisdictions, anonymous domain registrations, and cryptocurrencies make prosecution complex and lengthy. Consequently, brands suffer reputational losses, and players remain defenseless against fraud. Additionally, reports show that illegal sites deliberately target youth and financially vulnerable groups, offering “quick bets” and inflated payouts.
In this context, Parimatch and other international companies stress that combating counterfeits must become a central part of regulatory policy. Otherwise, any bans or tax increases will only fuel the shadow segment, which is already showing explosive growth.
Parimatch: Regulation, Not Prohibition, Is the Only Viable Strategy
A complete ban on RMG games combined with a 28% goods and services tax severely reduces the legal market segment. However, demand does not disappear — it simply shifts into uncontrolled and risky channels.
Strict regulation is the only sustainable path forward. It requires unified federal rules, effective self-regulated organizations (SRBs) with clear procedures and algorithm audits, implementation of age and behavioral restrictions, payment transparency, responsible gaming mechanisms, and strong intellectual property and brand protection.
For India, such an approach would mean preserving jobs, tax revenues, and innovation. For international companies, it would signal predictability and stability. And according to Parimatch, it is precisely this regulatory approach that will unlock the market’s potential and lay the foundation for long-term, sustainable growth.
