New research shows that the Indian government’s ban on interactive real-money online gaming has pushed players toward unregulated offshore gaming sites. Notably, it has not reduced overall participation in interactive gaming. A survey conducted by CUTS International, a consumer protection organization in India, found a substantial increase in offshore site usage following the ban implemented in September 2025.
Sudden Shift in Platform Preference
The study surveyed 1,000 former gambling customers in Delhi NCR. It found that offshore gambling activity rose from 68.3% before the ban to 82% afterward, representing a 20% increase in participation. About a quarter of respondents reported switching exclusively to offshore platforms. This shift was due to licensed operators ceasing onshore operations, directly linking the ban to platform migration within India.
Escalating Expenditure on Offshore Services
The survey also revealed notable changes in spending patterns. It found that the share of users spending INR 5,000–9,999 (US$55–$120) on offshore platforms rose from 7.6% pre-ban to 26.2% post-ban. Additionally, 13.5% reported spending more than INR 10,000 (US$120+). This increase indicates not only a migration but also heavier gambling activity on offshore sites outside of India’s jurisdiction.
These trends suggest that players are allocating as much—or even more—money to unregulated services than they did to licensed local platforms. This finding counters the intended effect of the prohibition to curb overall gambling expenditure within India.
Increased Engagement Frequency and Duration
Survey analysis shows that daily usage of offshore betting platforms jumped from 3.4% to 42%. Simultaneously, users spending more than two hours on these sites increased from 3.4% to 44%. These figures suggest that the gaming ban in India has neither dampened gamblers’ enthusiasm nor reduced engagement. Instead, it merely shifted it to platforms lacking consumer protection or responsible gambling safeguards.
Demand Redirection Rather Than Reduction
CUTS International emphasizes that the ban has largely redirected where and how people gamble. It has not decreased demand for betting activities within India. The study raises significant concerns about consumer welfare, as offshore sites operate beyond Indian regulatory oversight.
National Survey Expansion
CUTS International reports that it is expanding surveys across other Indian states. The goal is to assess whether the trend of migration to international platforms is consistent nationwide in India.
Effectiveness of Regulation and Unintended Consequences
The findings suggest that India’s gaming ban has triggered several unintended outcomes. Rather than reducing participation, it appears to have intensified engagement and spending. This shift exposes players to unregulated, potentially riskier platforms outside India. These results call into question the effectiveness of prohibition as a strategy for managing gaming activity in a context where fundamental demand persists and international alternatives exist.
