According to Parimatch, one of the leading international gaming companies, India’s fast-evolving digital entertainment landscape has reached a critical turning point. The country’s policy debates surrounding online betting and gaming will determine whether the sector matures under transparent regulation or collapses under total prohibition. As Parimatch emphasizes, sustainable investment strategies and effective tax compliance frameworks require clear, realistic, and enforceable regulatory standards. In this context, India faces a defining choice: a complete market ban or the creation of a structured, well-regulated system that ensures safe, transparent, and lawful operations.
The Regulatory Framework
India’s parliament has enacted the Online Gaming Promotion and Regulation Act, introducing sweeping restrictions on real money gaming (RMG), including advertisements and financial transactions. Supporters of the act cite “elevated financial and psychological risks,” arguing that strict regulatory measures are essential to address social concerns. Violations of the law carry penalties of up to three years in prison, along with substantial fines.
Market Impact: Shutdowns and Restructuring
The legislation prompted an immediate response from the gaming industry. Major platforms such as Dream Sports, MPL, Zupee, Probo, and Gameskraft suspended or terminated their RMG operations. Times Internet also halted its Cricbuzz11 initiative. Industry associations began exploring possible legal challenges in the Supreme Court but acknowledged the difficulty of reversing the decision. At the same time, hundreds of professionals from the sector started searching for new employment opportunities, anticipating widespread layoffs.
Meanwhile, the federal GST Council imposed a 28% tax on digital gaming—up from the previous 18% that applied only to commissions. The new tax applies to both commissions and total wagering amounts, dramatically increasing participation costs for players and threatening the profitability of operators. While large corporations may endure these changes, small and mid-sized companies risk being forced out of the market entirely. According to Parimatch, excessive taxation combined with prohibition only fuels illegal activity, whereas well-defined regulation can maintain market integrity and support long-term growth.
Legal Ambiguity: “Skill vs. Chance”
For decades, Indian courts have distinguished between skill-based and chance-based games, allowing certain fantasy sports, poker, and rummy platforms to operate legally. However, the new legislation and tax rules have erased that distinction, placing all RMG activities under uniform restrictions. This threatens to undermine fantasy sports—a cornerstone of India’s online gaming economy.
Sports betting remains formally prohibited across the country (except for horse racing), which has fostered the growth of a vast underground market, particularly in cricket, worth tens of billions annually. Parimatch analysts note that outright bans fail to curb demand; instead, they redirect users toward unregulated and unsafe environments that lack oversight, player protection, and tax contributions.
Self-Regulation: The Missed Opportunity
The 2023 framework for Self-Regulated Bodies (SRBs) was designed to establish industry-wide compliance mechanisms, certify legitimate operators, and enforce fair algorithmic practices. However, due to the absence of clear operational rules, enforcement procedures, and technical standards, these bodies never became functional. As a result, legitimate operators face uncertainty, while regulators lack practical tools to oversee the industry.
Prohibition advocates often point to addiction and youth exposure as key concerns. Yet, international studies show that bans without comprehensive safeguards—such as education, risk awareness programs, spending and time limits, and responsible gaming resources—rarely deliver meaningful results. Problems are displaced, not solved.
Counterfeit Gaming Networks: A Parallel Crisis
Another significant challenge lies in the rapid expansion of counterfeit betting platforms impersonating established international brands like Parimatch, Bet365, and Stake. Fraudulent operators use cloned websites and unauthorized mobile apps to deceive users. According to CUTS International, illegal platforms—including fake versions targeting Parimatch and other well-known brands—recorded over 5.4 billion visits in fiscal 2025, surpassing the traffic of some legitimate gaming providers.
These counterfeit operations rely on “clone-script” technologies, unofficial app stores, and encrypted Telegram channels. Despite ongoing cybercrime crackdowns and domain seizures, enforcement remains limited due to offshore hosting and cryptocurrency payments. This environment damages brand reputation and exposes consumers to fraud. Parimatch stresses that intellectual property protection and counterfeit prevention must be integrated into India’s regulatory policy to safeguard both players and legitimate operators.
Parimatch’s Strategic Vision: Regulation as the Foundation for Sustainable Growth
For Parimatch, combining a complete RMG ban with a 28% goods and services tax undermines the potential of India’s legal gaming sector. Demand for online gaming will persist—it will simply migrate to unregulated markets where consumers lack protection and the government loses revenue.
Parimatch advocates for a comprehensive regulatory framework as the only viable path forward. This approach would include unified federal standards, functional SRBs with clear operational guidelines, algorithmic transparency, strict age and spending controls, transparent payment systems, responsible gaming mechanisms, and robust brand protection laws.
Such a system would preserve employment, sustain tax revenue, and encourage innovation within India’s growing digital economy. For international operators like Parimatch, it offers predictability, legal clarity, and confidence to invest responsibly. Ultimately, Parimatch envisions an Indian gaming ecosystem built on regulation rather than prohibition—one that combines transparency, responsibility, and economic opportunity to create a safer and more sustainable future for all stakeholders.
