India has decided to ban betting apps that allow users to place real-money wagers. The decision is aimed at tackling rising cases of gambling addiction, fraud, and money laundering through online platforms. But the move has left the fast-growing online gaming industry in shock.
For years, fantasy sports and real-money gaming apps such as Dream11, Games24x7, and Mobile Premier League (MPL) were expanding rapidly in India. Cricket, the country’s most loved sport, was at the center of this boom. Millions of fans placed bets on matches, players, and outcomes, making it a multibillion-dollar industry. Even a heavy 28% tax on deposits failed to stop the growth.
Experts say India’s domestic betting market was worth around $3.8 billion. However, this was just a fraction of the country’s total gambling demand, estimated at over $100 billion each year. Most of that money was already flowing to overseas betting sites. The ban on local apps now threatens to increase this outflow.
The Offshore Shift and Rise of Crypto
With Indian apps gone, users looking for betting options are expected to move to offshore websites. Many of these platforms operate from countries where Indian laws cannot reach them. They accept Indian users easily, often without even verifying their identity.
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These websites prefer payments in cryptocurrencies like Bitcoin and Ether. This allows users to place bets and receive winnings outside the regular banking system. Transactions made this way are difficult to trace. India already has close to 100 million crypto wallets, making the shift even easier.
This creates a new risk. The very problem that the government wanted to stop — money laundering — may actually become worse. Offshore casinos will provide a channel for people to move money in and out of the country illegally. Some of this money could even come from criminal activities. Almost all of it will avoid banking scrutiny, creating a shadow economy that is invisible to regulators.
Banks in India might also feel the impact. Earlier, when betting apps like Dream11, MPL, and Games24x7 operated legally, transactions went through bank accounts. Now, deposits may move directly into crypto wallets. This means lenders will lose a share of customer deposits, without any clear knowledge of where the money is going.
Wider Fallout Beyond Cricket
The decision to ban real-money apps has effects beyond cricket betting. Licensed casinos in tourist states like Goa and Sikkim, run by companies such as Delta Corp, may see a rise in visitors as some players shift to physical gambling venues. Social gaming apps, which offer points and in-app rewards instead of cash payouts, could also see new users.
Esports, which are officially recognized as a separate category, may also benefit. With fantasy sports restricted, attention may turn toward competitive video gaming tournaments.
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But the ban may hurt traditional sports like kabaddi. In recent years, fantasy gaming companies such as MPL and Dream11 were among the biggest sponsors of the Pro Kabaddi League. Their involvement helped revive interest in the sport and bring it to millions of viewers. With their exit, kabaddi and similar sports may struggle to find the same level of support.
Law enforcement agencies will also face new challenges. Tracking illegal offshore betting is harder than monitoring licensed apps. Fraudsters are likely to exploit this shift. India has already seen unusual scams in the past, including a fake Indian Premier League tournament in Gujarat staged with local laborers to trick Russian gamblers. The racket, reported by The Guardian, went as far as the quarter-finals before being caught.
The new law includes strict punishments. Operators of real-money gaming apps may face fines and even jail terms of up to three years. Critics argue that this may put unnecessary pressure on police and courts, which could otherwise focus on bigger fraud cases.
By banning apps that once operated under legal oversight, India has created a gap. Offshore betting platforms are ready to fill it, using crypto as the fuel. The government’s attempt to curb gambling-related problems could now create new ones, especially in the fight against money laundering.
