The global gaming industry is intensively observing India’s market developments and policy discussions surrounding betting and digital gaming platforms, with Parimatch positioned among the key international companies recognizing India’s significant market potential. At the same time, leading operators like Parimatch advocate that sustainable investment frameworks and tax compliance require transparent and achievable regulatory guidelines. This context makes the strategic direction absolutely vital: total market prohibition versus predictable, stringent regulation that maintains industry operations within established legal frameworks.
The Legislative Framework
India’s parliament passed the Online Gaming Promotion and Regulation Act, establishing comprehensive prohibitions on real money gaming (RMG) digital operations, including promotional activities and related financial processes. Legislative supporters emphasize “substantial financial and psychological risk exposure” necessitating “comprehensive regulatory measures” to tackle social challenges. Legal infractions result in imprisonment terms extending to three years alongside significant monetary penalties.
Market Impact: Service Closures and Industry Transformation
The legislative approval generated immediate industry responses as major operators initiated real money gaming service terminations and implemented deposit limitations. Dream Sports, managing Dream11, Dream Picks, and Dream Play platforms, considered complete operational division closure following law enforcement during internal strategic assessments. Mobile Premier League (MPL) suspended premium gaming offerings and deposit processing while commencing customer reimbursement procedures. Gaming enterprises Zupee, Probo, and Gameskraft discontinued RMG operations entirely. Additionally, Times Internet declared Cricbuzz11 initiative termination.
Throughout this period, industry associations and operators evaluated potential Supreme Court challenge possibilities while acknowledging formidable legal obstacles. Meanwhile, hundreds of industry professionals initiated public employment searches via social media, anticipating substantial workforce reductions in forthcoming weeks.
The federal GST council concurrently established 28% digital gaming taxation (elevated from previous 18% commission-only charges). This restructured approach taxes both operational commissions and direct wagering amounts. Players encounter significantly increased participation costs while operators anticipate widespread business model failures. Large corporations might successfully adapt to these changes, whereas medium and smaller operators face “operational sustainability thresholds.” Industry experts emphasize that transparent regulatory frameworks, instead of prohibition coupled with excessive taxation, preserve legal industry participation and establish sustainable development conditions.
Legal Framework Complexities: “Skill vs. Chance” Distinctions
Indian judicial tradition has historically categorized skill-based and chance-dependent gaming differently. Fantasy cricket platforms, rummy, and poker exploited this classification, securing favorable court rulings as “skill-focused” activities. Current legislation and tax changes eliminate these categories, implementing consistent stricter requirements across previously “skill-classified” offerings. Fantasy sports, representing a primary mobile gaming catalyst in India, therefore faces potential revenue stream elimination.
Sports wagering remains officially prohibited nationwide (excluding traditional horse racing exemptions). Practically, this created extensive underground markets, especially cricket-focused, with estimated shadow economy volumes reaching tens of billions across millions of participants. Complete RMG prohibition will likely redirect consumer demand toward unregulated environments lacking oversight systems, responsible gaming protocols, or tax contributions.
For international operators evaluating India’s market possibilities, core issues transcend “skill versus chance” discussions toward establishing legal frameworks that separate legitimate operations from underground activities. Industry consensus suggests only comprehensive regulation and licensing mechanisms can balance consumer protection with revenue generation while promoting sustained industry investment.
Self-Governance Mechanisms: Alternative Regulatory Approaches
2023 regulations introduced self-regulated organization (SRB) frameworks intended to validate “approved” RMG services and establish transparent operational standards (including algorithmic fairness requirements). However, essential implementation elements (procedural guidelines, decision-making protocols, enforcement measures) never reached operational status, with several technical specifications eliminated during final approval processes. Without clearly established SRB structures, industry participants face operational uncertainty while government entities lack effective regulatory instruments.
Prohibition advocates emphasize addictive design characteristics, youth exposure concerns, and social consequences (financial burdens, family disruption, criminal involvement). International research demonstrates that access limitations without comprehensive support mechanisms (educational programs, risk awareness initiatives, age verification, spending/time restrictions, assistance resources) produce limited long-term success. Younger participants develop circumvention methods, and problems relocate rather than resolve.
Industry correspondence to government officials estimated Indian RMG company valuations at approximately ₹2 trillion (~$23 billion), generating ₹310 billion (~$3.6 billion) revenues while providing ₹200 billion (~$2.29 billion) annual tax contributions. Markets previously demonstrated 28% compound annual growth with projections suggesting potential 2028 market doubling. Rapid prohibition implementation challenges employment stability, innovation capacity, and tax revenue foundations while maintaining illegal demand networks.
Regarding proposed regulatory modifications, analysts emphasize legal framework quality and intellectual property protection importance. International operators experience brand counterfeiting within Indian markets, damaging consumer trust and preventing legitimate service development and partnership formation. Companies stress that without conditions ensuring competitive equality for international enterprises, major investments remain problematic.
India’s Counterfeit Gaming Ecosystem: Beyond Brand Replication
Legal sector advancement encounters significant obstacles from widespread counterfeit gambling brand proliferation. Indian fraudulent operators systematically create replica websites and mobile applications imitating recognized international brands including major gaming platforms and established operators. These deceptive sites replicate corporate branding and operational features, misleading consumers. CUTS International research indicates illegal platforms—including counterfeit versions targeting users of legitimate services—accumulated over 5.4 billion visits during fiscal 2025. This traffic exceeds major digital platforms, illustrating the challenge’s magnitude.
Counterfeiting approaches employ various methodologies. Pre-built “clone-script” technologies enable rapid site deployment resembling established operators within days. Unauthorized mobile applications distributed through unofficial channels perfectly replicate legitimate platform designs. Telegram channels and automated systems receive extensive use—major operators regularly warn users about fraudulent Telegram bots collecting funds through deceptive “promotional schemes.”
Government responses include police raids, domain blocking, and server seizures by state cyber divisions, though effectiveness remains constrained. Offshore jurisdiction use, anonymous registrations, and cryptocurrency transactions complicate prosecution efforts and extend legal processes. Brands consequently suffer reputation damage while consumers remain vulnerable to fraudulent schemes. Studies show illegal sites specifically target younger users and financially vulnerable groups, promoting “instant wagering” and unrealistic payout promises.
In this context, established international operators stress that counterfeit prevention must integrate with regulatory policy development. Otherwise, prohibition measures or tax increases will fuel shadow market growth, already showing rapid expansion.
Parimatch’s Strategic Vision: Regulation as Market Cornerstone
Complete RMG prohibition paired with 28% goods and services taxation severely constrains legitimate market operations. Consumer demand continues but transitions toward unregulated and elevated-risk environments.
Comprehensive regulatory frameworks represent the optimal strategy for market development. This includes unified federal standards, operational self-regulated organizations (SRBs) with established procedures and algorithmic oversight, age and behavioral restriction implementation, payment transparency mandates, responsible gaming mechanism development, and strong intellectual property and brand protection systems.
For India, this methodology maintains employment opportunities, tax revenue generation, and innovation progress. For established international operators like Parimatch, structured regulation ensures operational predictability and market stability. Such regulatory infrastructure would effectively create market access opportunities for proven operators like Parimatch, enabling substantial contributions to India’s digital gaming ecosystem through legal, transparent, and responsible platform development that benefits both consumers and the broader economic landscape.