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New research has found that the Indian government’s ban on interactive online gaming for real money has resulted in players moving forward to unregulated ‘offshore’ gaming sites, and has not resulted in reduced interactive gaming participation. It has been found in a survey carried out by the CUTS International, a customer protection organization, that there has been a substantial increase in the use of the offshore sites since the implementation of the ban in September 2025.
Sudden Change in Platform Preference
One such study was conducted by CUTS International, where it was found that among 1,000 former gambling customers in Delhi NCR, offshore gambling activity went from being practiced by 68.3 percent of people before the ban to being done by 82 percent of people after its implementation, essentially raising offshore gambling participation by 20 percent.
About a quarter of those who participated in the surveys reported a transition of using offshore platforms exclusively due to licensed operators ceasing operations onshore, indicating the ban is a direct cause of platform migration.
Escalating Expenditure Patterns on Offshore Services
The study shows the following changes in expenditure patterns amongst gamblers on offshore platforms. The number of persons who spend money on offshore platforms between INR 5,000 (US$55) and INR 9,999 (US$120) rose from 7.6 percent pre-ban to 26.2 percent post-ban. Further, 13.5 percent of respondents said they spend more than INR 10,000 (US$120 or more), which shows that gamblers not only switched but are also gambling heavily on offshore platforms.
These increases in costs imply that players are allocating similar or even bigger resources to offshore non-regulated services than they did in licensed local sites, contrary to what prohibition is anticipated to achieve by decreasing overall gaming outlay.
Enhanced Engagement Frequency and Duration
Analysis of the results from the survey shows that the level of engagement on the offshore platforms has significantly increased. The daily usage of the betting platforms on the offshore sites increased from 3.4 percent to 42 percent. In addition to that, the use of more than two hours on the betting sites also increased from 3.4 percent to 44 percent.
These indicators prove that the ban has neither decreased the passion of gamblers nor tempered it, but instead has redirected it to platforms that lack limits related to consumer protection or responsible gambling practices.
Demand Redirection Instead of Demand Reduction
According to CUTS International, the findings indicate the existence of proof that the ban has radically shifted the locations and modes by which people engage in betting rather than a reduction in the level of demand for the betting activities. The group highlights the fact that this data poses major issues regarding the welfare of consumers, considering that the offshore sites are beyond the reach of regulations.
National Survey Expansion and Regional Assessment
CUTS International reports that they are currently conducting further surveys in other Indian states in an evaluation attempt to assess whether the observed trends of mobility to the international waters of the Indian Ocean are being realized on a national scale.
Effectiveness of Regulation and Unintended Outcomes
India’s gaming ban seems to have triggered many unintended consequences unrelated to its intended goals. Instead of totally discouraging gaming participation, the ban seems to have redirected gaming participation from domestic platforms into those that are not under the jurisdiction of Indian consumer protection regimes. The rise in the levels of spending and engagement with the foreign platforms indicates that gaming prohibition could have strengthened gaming participation intensity while ensuring the absence of consumer protection regimes.
This result leaves a whole lot of questions regarding the effectiveness of prohibition as a regime for managing gaming activity in a context where there is an underlying fundamental demand and international alternative provision.
Source: Focus Gaming News
