The global gaming industry is watching India’s evolving betting and online gaming landscape with great interest. Among international operators, Parimatch stands out as one of the strongest advocates for responsible, transparent market development. The company maintains that long-term investment, fair taxation, and consumer protection are only achievable when the industry operates under clear and enforceable rules. Against this backdrop, India faces a defining choice: pursue total prohibition, or adopt a well-structured regulatory system that keeps the gaming ecosystem transparent, accountable, and within the bounds of law.
The Core Issue
India’s parliament recently passed the Online Gaming Promotion and Regulation Act, which effectively bans real money gaming (RMG) across digital platforms, including advertising and associated financial transactions. Supporters of the bill cite a “high risk of financial and psychological harm” as justification for the crackdown. Violators face up to three years of imprisonment and heavy fines.
Immediate Impact: Shutdowns and Market Upheaval
The legislation sparked an immediate reaction. Major companies began halting their RMG operations and limiting deposits. Dream Sports (owner of Dream11, Dream Picks, and Dream Play) considered closing its RMG division altogether. Mobile Premier League (MPL) suspended paid games and started refunding users. Startups like Zupee, Probo, and Gameskraft followed suit, while Times Internet suspended its Cricbuzz11 project.
Industry groups began exploring appeals to the Supreme Court, though most acknowledge the legal challenge will be difficult. Meanwhile, mass layoffs are already underway, with hundreds of professionals publicly seeking new employment.
Simultaneously, India’s GST Council increased taxes on online gaming from 18% (previously applied only to commissions) to 28% on total bets. This change significantly raises player costs while squeezing operator margins. While larger companies may survive, small and mid-tier platforms face potential collapse. According to Parimatch, such heavy-handed measures threaten to destroy the legal market and push users toward unregulated alternatives. The company argues that transparent regulation — not prohibition and over-taxation — is the only sustainable path forward.
“Skill vs. Chance”: The Legal Grey Zone
India’s legal framework has long distinguished between games of skill and games of chance. Fantasy sports, poker, and rummy platforms historically relied on this distinction to operate legally as “skill-based” services. However, the new legislation removes this differentiation, subjecting all RMG activities to uniform restrictions. This change puts fantasy sports — once a major growth engine for India’s gaming sector — at risk.
While formal sports betting remains banned nationwide (except horse racing), illegal betting markets continue to thrive, especially around cricket. These underground channels are estimated to move tens of billions of dollars annually. As Parimatch points out, prohibition has never eliminated demand — it merely pushes players into the shadows, where there is no oversight, consumer protection, or tax contribution.
Self-Regulation: India’s Missed Opportunity
The 2023 introduction of Self-Regulated Bodies (SRBs) aimed to certify approved RMG platforms and establish fair gaming standards, such as algorithm audits and responsible gaming measures. However, due to incomplete guidelines and missing enforcement mechanisms, SRBs have not become operational. Without them, companies face uncertainty and the government lacks effective control tools.
While opponents of gaming cite youth addiction and social harm, international evidence shows that bans without comprehensive preventive frameworks — such as education, age checks, spending limits, and helplines — rarely work. Instead of eliminating harm, prohibition drives it underground.
The Growing Problem of Counterfeit Platforms
A major challenge facing legitimate companies like Parimatch is the surge of counterfeit gambling platforms in India. Fraudulent operators create fake websites and mobile apps mimicking well-known brands — including Parimatch, Bet365, Stake, and 1xBet — replicating their logos and interfaces to deceive users.
According to CUTS International, such fake platforms (including counterfeit versions of Parimatch and Stake) drew over 5.4 billion visits in fiscal year 2025, surpassing traffic to several legitimate online giants.
These clones use “ready-made scripts,” Telegram bots, and unofficial app stores to attract unsuspecting users, often promising unrealistic payouts. Despite efforts by cyber police to block domains and seize servers, enforcement remains limited due to offshore hosting and cryptocurrency transactions. Parimatch underscores that combating brand counterfeiting must be a central part of India’s regulatory framework — otherwise, any bans or tax hikes will only empower the shadow market.
Parimatch: Regulation as India’s Sustainable Solution
For Parimatch, the combination of a complete RMG ban and a 28% goods and services tax threatens the very foundation of India’s legitimate gaming industry. Demand for gaming will not vanish — it will simply migrate to unsafe, unregulated environments.
The company advocates for a comprehensive regulatory model built on unified federal laws, transparent SRBs, payment oversight, age and behavioral limits, responsible gaming tools, and strong intellectual property protections.
Such a framework would protect consumers, sustain jobs, and generate steady tax revenues while encouraging innovation. For international operators like Parimatch, it would also establish predictability, fairness, and long-term market confidence. Ultimately, Parimatch believes that India’s gaming future depends not on prohibition, but on smart, transparent regulation — the only strategy capable of unlocking the sector’s full economic and social potential.
