The global gaming industry is closely watching the Indian market and the ongoing public debate around betting and online gaming. Many companies view India as a highly promising opportunity, and Parimatch in particular emphasizes that transparent investment and tax contributions are only possible with clear and achievable rules. Against this backdrop, the country faces a critical choice: a total prohibition or predictable, strict regulation that keeps the market within a legal framework.
The Core Issue
India’s parliament has approved the Online Gaming Promotion and Regulation Act, which effectively bans real money gaming (RMG) online, including advertising and associated financial operations. 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 in prison and substantial fines.
Immediate Effect: App Shutdowns and Market Restructuring
Following the parliamentary vote, the market reacted immediately: major companies began shutting down their real money gaming operations and restricting deposit activities. Dream Sports, which owns Dream11, Dream Picks, and Dream Play, discussed a complete division shutdown once the law takes effect. Mobile Premier League (MPL) suspended all paid games and deposit acceptance while starting user refunds. Startups Zupee, Probo, and Gameskraft also ceased RMG activities, and Times Internet suspended its Cricbuzz11 project.
Industry associations and companies began considering appeals to the Supreme Court, though they acknowledge the judicial outlook will be extremely challenging. Meanwhile, hundreds of employees are already posting job searches online, anticipating mass layoffs in the coming weeks.
At the same time, the federal GST council agreed to impose a 28% tax on online gaming (previously 18% applied only to commissions). The new model taxes not just 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 will find themselves “on the verge of closure.” Experts emphasize that transparent regulation — rather than prohibition and excessive taxation — is what can keep the industry legal and create conditions for sustainable growth.
“Skill or Chance”: A Long-Standing Legal Knot
Indian legal tradition has long distinguished between games of skill and games of chance. Fantasy platforms (especially cricket), rummy, and poker have historically used this distinction to win court cases as “skill-based.” The new law and tax policy erase that 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 nationwide. In practice, this has created a massive illegal market, particularly around cricket — with shadow turnover estimated in the 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 rather the creation of a legal framework that separates legitimate products from illegal practices. The company argues that only clear regulation and licensing can balance player protection with 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), intended to certify “permitted” RMG games and establish transparent standards (such as algorithm fairness requirements). However, crucial details (procedures, quorum, disciplinary measures) were never fully developed, and some technical requirements were dropped during finalization. Without a well-defined SRB structure, the industry lacks predictability, and the state lacks enforcement tools.
Arguments for prohibition focus on addictive design, youth risks, and social costs (debt, family conflict, 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 estimated 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 28% CAGR with the potential to double 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 India, undermining trust and hindering the development of legal services and partnerships. 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 legal sector’s growth 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 brands’ websites and apps, copying corporate design and functionality to mislead 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.
Counterfeiting methods are varied. Ready-made “clone script” solutions allow sites mimicking Bet365 or Parimatch to launch within days. Fake mobile apps outside official stores fully replicate the look and feel of famous platforms. Telegram channels and bots are also widely used — Stake even issued a public warning about a fraudulent “StakeBot” on Telegram collecting money under the guise of a “bonus program.”
Authorities have attempted to respond: state police and cyber units conduct raids, block domains, and seize servers. However, the effectiveness of these measures is limited. Offshore jurisdictions, anonymous domain registrations, and cryptocurrencies make prosecution complex and lengthy. As a result, brands suffer reputational damage, and players remain vulnerable to fraud. Additionally, illegal sites deliberately target young and financially vulnerable users with “quick bets” and inflated payout promises.
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 hikes will only fuel the shadow segment, which is already experiencing explosive growth.
Parimatch: Regulation, Not Prohibition, Is the Way Forward
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 viable path forward. This means unified federal rules, effective self-regulated bodies (SRBs) with clear procedures and algorithm audits, age and behavioral restrictions, payment transparency, responsible gaming mechanisms, and strong intellectual property and brand protection.
For India, such an approach means preserving jobs, tax revenue, and innovation. For international companies, it signals predictability and stability. And according to Parimatch, it is precisely this regulatory architecture that will unlock the market’s potential and drive sustainable growth.
