Offshore Real-Money Gaming Firms Continue Targeting India Despite PROGA Crackdown
India’s sweeping crackdown on real-money online gaming has significantly reshaped the country’s digital gambling landscape, yet offshore operators continue to attract Indian users despite the introduction of strict legislation and enforcement measures.
The shift follows the passage of the Promotion and Regulation of Online Gaming Act, 2025, commonly referred to as PROGA, a major legislative effort designed to regulate India’s rapidly expanding online gaming sector while banning real-money wagering platforms.
India’s New Gaming Framework
PROGA established a nationwide regulatory structure for online gaming in India. The legislation was introduced to promote non-monetary digital gaming such as esports, casual gaming and entertainment-focused platforms while imposing strict restrictions on games involving financial stakes.
Under the law, online platforms are prohibited from offering, facilitating or advertising games played for money. The restrictions apply broadly across both games of chance and games of skill, eliminating a legal distinction that had previously allowed certain real-money gaming operators to function within the country under state-level regulations.
The legislation also introduced a licensing regime for permitted gaming platforms and created a central regulatory authority responsible for monitoring compliance across the sector. Companies that wish to operate legally must implement robust consumer protection measures including age verification systems, responsible gaming safeguards and data security protocols.
Authorities were also given expanded enforcement powers. Regulators can order internet service providers to block access to illegal gaming platforms and instruct digital app stores to remove non-compliant applications. Financial institutions and payment processors can be directed to restrict transactions linked to prohibited gaming services.
Offshore Operators Continue to Serve Indian Users
Despite these measures, offshore betting and gambling platforms remain widely accessible to Indian users.
Industry observers note that many international operators quickly adapted to the regulatory crackdown by launching mirror domains, redirecting traffic through alternative URLs and maintaining networks of backup websites. When authorities block one domain, operators often restore access through a new domain within days.
User registration on these platforms is typically simple and requires minimal verification. Many services allow players to create accounts using only a mobile number and a one-time password, enabling new users to begin wagering within minutes.
Payment systems also continue to function through a variety of channels including international payment gateways, digital wallets and cryptocurrency transfers. Because these platforms are usually headquartered outside India, enforcement actions taken by Indian regulators often have limited reach.
As a result, several internationally recognized betting brands continue to attract Indian traffic alongside regional offshore operators targeting the country’s large and growing online gaming audience.
Impact on Domestic Gaming Companies
The regulatory changes have had a far more direct impact on domestic gaming companies.
Prior to PROGA, India had developed a large real-money gaming ecosystem that included fantasy sports platforms, poker networks and skill-based gaming apps. Many of these companies operated legally under the argument that their games relied primarily on skill rather than chance.
The introduction of a nationwide prohibition forced several domestic operators to suspend real-money offerings, pivot toward free-to-play formats or explore international markets.
Industry participants argue that this has created an uneven competitive environment in which domestic companies must comply with strict regulatory rules while offshore operators continue to serve Indian users from outside the country’s legal jurisdiction.
Taxation and Player Compliance
Another important element of India’s gaming landscape involves the taxation framework that previously applied to real-money gaming.
Under India’s tax system for online gambling, winnings from such activities have historically been subject to tax deducted at source, while the gaming industry itself faced the imposition of a 28 percent Goods and Services Tax on the full value of player deposits placed on gaming platforms.
Although PROGA fundamentally altered the legal environment for real-money gaming, questions about taxation and compliance remain relevant for individuals who previously participated in such platforms.
When asked about how these rules affect Indian players, analysts at CricketBatPro noted that many users still remain unclear about their obligations under the country’s tax system. According to commentary provided by the platform, the combination of TDS on winnings, GST applied to deposits and income tax reporting requirements created a complex compliance environment for players even before the introduction of PROGA
Ongoing Regulatory Debate
The implementation of PROGA has sparked ongoing debate among policymakers, industry leaders and legal experts.
Supporters argue that the legislation is necessary to protect consumers from financial harm, addiction risks and unregulated gambling activity. Critics, however, contend that a blanket prohibition may drive users toward offshore platforms that operate beyond the reach of Indian regulators.
Legal challenges to the law are also expected, particularly from companies that previously operated skill-based gaming platforms under earlier court rulings distinguishing skill from gambling.
India remains one of the world’s largest and fastest-growing digital gaming markets, supported by widespread smartphone adoption, affordable mobile data and strong engagement with sports such as cricket.
As regulators continue refining their approach to online gaming oversight, the persistence of offshore betting platforms highlights the broader challenge governments face when attempting to regulate cross-border digital services.
Without stronger international cooperation or tighter financial controls, analysts believe offshore real-money gaming operators may continue to find ways to access India’s massive online user base despite the country’s regulatory crackdown.
