A study published by CUTS International, a public think tank, shows that the ban on online gold games in India has not curbed the lottery as expected, but has led some users to switch to unregulated offshore platforms. According to the report, 83 per cent of the households surveyed in Tamil Nadu continued or started using off-shore gaming sites after the ban was imposed, a significant increase compared to the previous ban.
The Online Game Promotion and Regulation Act (PROGA), which was introduced in August 2025, prohibits online gold games, including dream sports, Lami cards, poker and others involving bets, throughout the country, with the aim of reducing financial losses and public addiction. The report was based on feedback from 1,000 adults in Tamil Nadu who had participated in online gold games before the ban. The survey found that 67.8 per cent of respondents had used an off-border platform prior to the ban, usually in parallel with a local game platform. As the iGaming strategic expert, Japnet Singh Sethi, noted: “These data clearly show that the ban cannot eliminate demand and can only divert demand. When regulated indigenous platforms are closed, users do not abandon the game, but instead move to offshore sites that are outside the legal, tax and consumer protection mechanisms. Thus, instead of protecting users, the ban has shifted the market to a subject that cannot be reached by regulation.” Sessi further explained that: “More sustainable solutions are a credible and well-regulated indigenous framework with strong consumer protection mechanisms, standards for responsible play and transparent tax systems. When users trust a regulated platform, compliance naturally increases and reliance on an offshore platform decreases over time.”
The report also revealed a significant increase in the contribution of users to offshore platforms following the ban. Prior to the ban, users of offshore platforms placed more small amounts: 37 per cent on average less than Rs. 1000 (approximately US$ 10.90) per month, 44 per cent between Rs. 1000 and 4999 (US$ 10.90-54.38); and only about 2 per cent on average. Following the ban, there was a marked increase in the percentage of high-level investments: 25 per cent of offshore users had a monthly rate of Rs. 5000-99999 ($54.39-108.66), 21 per cent of Rs. 10,000-24999 ($108.77-271.96) and 9 per cent of Rs. 25,000 ($272) or even higher. User participation has also increased dramatically. Prior to the ban, offshore platforms were mostly associated with short- and low-frequency game behaviour: only 3 per cent of users landed daily and only 2 per cent of single games lasted more than two hours. After the ban, 45 per cent of offshore users indicated daily use of the platform. Forty-three per cent reported single games lasting more than two hours. Ananay Jain, Grant Thornton Bharat partner and head of the national media industry, said: “CUTS’ investigation clearly shows that the CUTS ban does not prevent online games from happening, but rather makes them underground, more hidden and more risky. When 83 per cent of users continue to use offshore platforms and the daily rate of usage increases sharply, this is not a regulatory challenge, but a demand shift.”
He warned that offshore platforms often lacked consumer protection measures such as deposit restrictions, self-exclusion tools or complaint mechanisms. “When Indian users suffer financial losses or fraud on banned offshore websites, it is often difficult to obtain reasonable and effective relief. To push users to the more hidden corners of the Internet would appear to be law enforcement, causing even greater harm.” He suggested that a unified regulatory framework and a combination of safeguards and accountability would be more effective in protecting consumer rights than a fragmented ban. The report also noted that there was a general perception among users that the off-shore gaming platform was easy to use in terms of filling and cashing, and that that recognition had not changed before and after the ban was imposed, indicating that ease of use and convenience were important factors driving user selection.