A survey by the public policy think tank Consumer Unity & Trust Society (CUTS International) indicates that India’s nationwide ban on online real-money gaming (RMG) has not reduced gambling activity. Instead, it has driven users toward unregulated offshore betting platforms. The findings are based on responses from 1,000 adults in the Indian state of Tamil Nadu and reveal a marked rise in offshore usage following the introduction of the Promotion and Regulation of Online Gaming Act (PROGA), 2025. Researchers conclude that user behaviour has changed in terms of platform choice, while overall spending and engagement levels remain largely intact.
India’s iGaming Ban Fuels Offshore Betting in Tamil Nadu by 83%: Quick Overview of the Key Facts
- A survey by CUTS International shows that India’s nationwide ban on online real-money gaming has not reduced gambling activity but redirected it to unregulated offshore betting platforms. In Tamil Nadu, offshore usage rose to 83% after the ban, up from 67.8% before restrictions.
- The report finds that spending patterns have shifted towards higher monthly wages on offshore sites. Post-ban data show a rise in user spending of ₹5,000 (€42.50) or more per month. Meanwhile, 9% of consumers spend ₹25,000 (€212.50) or above.
- Engagement levels have also increased, with daily play and longer sessions becoming more common on offshore platforms. Analysts warn that the shift reduces consumer protection and argue that fragmented bans may displace risk rather than limit online gambling.
Offshore Gambling Booming After Total Ban
India’s Promotion and Regulation of Online Gaming Act (PROGA), 2025, enforced a nationwide ban on online real-money games, including fantasy sports, rummy, and poker. Lawmakers aimed to reduce financial harm and addictive behaviour. However, a research study shows that the reality on the ground is quite different.
According to the CUTS International survey, offshore betting sites were already embedded in user behaviour before the ban, with 67.8% of respondents reporting prior use alongside domestic platforms. After the ban, offshore usage rose to 83%, driven by more users starting to use such platforms than stopping.
iGaming strategist Japneet Singh Sethi noted:
This data clearly shows that bans don’t eliminate demand; they displace it.
The report concluded that regulatory changes redirected activity rather than reducing it. More respondents initiated offshore use after the ban, at 26.9%, compared with 11.7% who discontinued it. CUTS International noted that this pattern reflects substitution rather than withdrawal from online gambling.
Before the ban, offshore betting was typically linked to smaller monthly wagers. The survey found that 37% of offshore users spent less than ₹1,000 (€8.50) per month, while 44% spent between ₹1,000 (€8.50) and ₹4,999 (€42.50). Monthly spending above ₹10,000 (€85.00) was uncommon, reported by only around 2% of users.
Following the ban, offshore platforms accounted for a greater share of higher-value play. The report shows that 25% of offshore users now spend between ₹5,000 (€42.50) and ₹9,999 (€85.00) per month, while 21% spend between ₹10,000 (€85.00) and ₹24,999 (€212.50). Additionally, 9% reported monthly offshore spending of ₹25,000 (€212.50) or more.
Sethi continued:
This data clearly shows that bans don’t eliminate demand; they displace it. When regulated domestic platforms are shut down, users don’t stop playing. They move to offshore sites that operate outside laws, taxation, and consumer safeguards. So instead of protecting users, the market effectively shifts to entities beyond regulatory control.
Regulatory Responses and Ongoing Uncertainty
The survey also recorded a sharp rise in engagement on offshore platforms after the ban. Before restrictions, only 3% of users reported daily offshore play, and just 2% said gaming sessions lasted more than two hours. After the ban, 45% reported playing daily, while 43% said they spent more than two hours per session.
Ananay Jain, Partner and National Media Industry Leader at Grant Thornton Bharat, observed that the CUTS International survey pointed out that India’s RMG ban has been unsuccessful in preventing online gambling, even as unregulated platforms are being taken down.
Jain said:
What the CUTS International survey has made clear is that the online gaming ban has not prevented online betting from taking place, but it has transformed the phenomenon, rendering it invisible and far riskier. When 83% of users continue on offshore platforms and daily usage rises sharply, it’s not defiance but displacement.
Jain warned that offshore platforms often lack consumer protections such as deposit limits, self-exclusion tools, or grievance mechanisms. He said that when users lose money or are defrauded on such sites, “there is often no place where reasonable recourse could be realistically made.”
He added that pushing activity into less visible channels may increase harm rather than reduce it. The report noted that offshore platforms were perceived as easy to access for deposits and withdrawals both before and after the ban.
CUTS International suggested that convenience and established access channels were key drivers of continued use. The study also highlighted that prohibitive regulation, which removes domestic supply without addressing offshore access, may shift higher-value activity to less-regulated environments.
In Tamil Nadu, authorities have taken enforcement action by blocking three Telegram groups with a combined membership of 13,518 users for promoting illegal betting. Regulators across several states have identified Telegram as a key channel for such activity, particularly during major sporting events.
Despite these measures, regulatory uncertainty remains at the national level amid ongoing constitutional debates over the Promotion and Regulation of Online Gaming Act. The findings add to a growing body of evidence that bans alone may not achieve intended policy outcomes in online gaming.
CUTS International said similar trends were observed in a December 2025 survey in Delhi NCR, where one in four users migrated to offshore platforms. The organisation noted that further state-level studies are underway to assess how user behaviour continues to evolve under India’s current regulatory framework.