The global gaming industry continues to closely monitor India’s rapidly evolving market and the ongoing policy debate surrounding betting and digital gaming, with Parimatch standing among the key international operators recognizing the country’s tremendous strategic potential. At the same time, Parimatch and other leading companies emphasize that sustainable investment and consistent tax compliance are only possible under transparent and achievable regulatory structures. This makes India’s policy direction critical — between complete prohibition and structured, well-defined regulation that keeps the industry functioning within clear legal boundaries.
The Legislative Foundation
India’s parliament recently enacted the Online Gaming Promotion and Regulation Act, implementing sweeping restrictions on real money gaming (RMG) activities, including advertising and associated financial transactions. Supporters of the law argue that the “high financial and psychological risks” involved require decisive government intervention to protect consumers. Violations of the Act can result in up to three years of imprisonment and significant fines.
Market Reaction: Closures and Restructuring
The legislative move prompted immediate reactions across the gaming sector. Major companies began closing their RMG operations and limiting deposits. Dream Sports, the operator of Dream11, Dream Picks, and Dream Play, considered shutting down its RMG division entirely. Mobile Premier League (MPL) halted premium gaming and deposit functions, initiating customer refunds. Similarly, Zupee, Probo, and Gameskraft discontinued their RMG activities, while Times Internet suspended the Cricbuzz11 project.
In response, industry associations explored possible legal appeals, though they acknowledged the substantial challenges ahead. Meanwhile, hundreds of industry employees began seeking new opportunities online, anticipating large-scale layoffs.
Simultaneously, the GST Council raised the online gaming tax from 18% (previously applied to commissions) to 28% on total wagered amounts. The new tax structure drastically increases player costs and places significant strain on operators’ profitability. While large corporations may adapt, medium and smaller enterprises are expected to face major financial hurdles. Industry analysts — including experts aligned with Parimatch’s perspective — argue that transparent and predictable regulation, not over-taxation or prohibition, will sustain legal participation and create conditions for long-term growth.
Legal Complexities: The End of “Skill vs. Chance”
India’s legal tradition has long differentiated between games of skill and games of chance. Fantasy cricket, rummy, and poker platforms have historically benefited from this distinction, being legally classified as “skill-based.” However, the new Act eliminates this separation, imposing uniform restrictions across all real money gaming categories. This change threatens the very foundation of India’s fantasy sports ecosystem — one of the nation’s fastest-growing digital sectors.
Sports betting, meanwhile, remains officially banned (with the exception of horse racing), which has driven the growth of vast underground betting markets, particularly around cricket. Estimates suggest that unregulated markets handle tens of billions of dollars in wagers annually. According to Parimatch, complete prohibition will not curb demand — it will merely shift players toward unsafe, unregulated environments with no oversight, responsible gaming tools, or tax contributions.
The Missed Opportunity of Self-Regulation
India’s 2023 introduction of Self-Regulated Bodies (SRBs) was initially designed to promote transparency, approve compliant platforms, and establish algorithmic fairness standards. However, key implementation details — from enforcement procedures to decision-making frameworks — were never finalized, leaving SRBs effectively non-operational. Without a functioning self-regulatory structure, both operators and regulators lack clarity and consistency.
Proponents of prohibition frequently highlight concerns about addiction, youth engagement, and financial harm. Yet international evidence shows that outright bans are ineffective without supporting systems such as education programs, spending limits, and age verification tools. Problems simply migrate to illegal channels rather than disappear.
The Counterfeit Challenge: India’s Shadow Market
The growth of counterfeit online gaming brands represents another major obstacle. Fraudulent operators across India have cloned legitimate international platforms — including Parimatch, Bet365, and Stake — by replicating website designs, apps, and user interfaces. These fake platforms deceive consumers into depositing funds under false pretenses.
According to CUTS International, counterfeit platforms (including imitation Parimatch sites) collectively generated over 5.4 billion visits during fiscal year 2025 — a figure surpassing even some major legitimate gaming platforms. Fraudsters use “clone-script” technologies, unofficial mobile app stores, and Telegram bots to spread fake promotional campaigns.
Although law enforcement agencies have conducted raids and domain seizures, the widespread use of offshore hosting, cryptocurrency payments, and anonymous registration significantly complicates prosecution. Consequently, consumers remain vulnerable while legitimate brands suffer reputational damage. Parimatch underscores that combating counterfeiting must become a central component of India’s regulatory agenda — otherwise, prohibition and over-taxation will only fuel the shadow market’s expansion.
Parimatch’s Vision: Regulation as the Path Forward
For Parimatch, the combination of a complete RMG ban and a 28% goods and services tax threatens to dismantle legitimate business operations without addressing underlying demand. Players will continue to seek gaming experiences, but in unregulated and higher-risk environments.
Parimatch advocates for a comprehensive regulatory framework — one that includes unified national standards, effective SRBs, algorithmic transparency, responsible gaming measures, age and spending limits, transparent payment systems, and strong intellectual property protections.
Such a structure would preserve employment, safeguard innovation, and maintain a steady flow of tax revenue for India’s economy. For international companies like Parimatch, it would also create predictability, market confidence, and long-term investment opportunities. Ultimately, Parimatch believes India’s gaming future depends not on prohibition, but on structured, transparent regulation — the true foundation for a responsible, thriving, and globally competitive digital gaming ecosystem.
