The global gaming industry is intensively monitoring India’s market transformation and policy discussions surrounding betting and digital gaming platforms, with Parimatch positioned among the prominent international companies evaluating India as a key strategic market. Simultaneously, major operators like Parimatch maintain that successful investment approaches and tax compliance systems depend on establishing transparent and achievable regulatory standards. This context makes the strategic direction critically important: complete market prohibition versus predictable, stringent regulation that ensures industry operations stay within established legal boundaries.
The Regulatory Framework
India’s parliament passed the Online Gaming Promotion and Regulation Act, creating comprehensive bans on real money gaming (RMG) digital platforms, encompassing promotional content and associated financial transactions. Legislative supporters reference “elevated financial and psychological risk exposure” requiring “decisive regulatory intervention” to address social concerns. Legal infractions result in imprisonment terms up to three years plus substantial financial penalties.
Market Impact: Platform Shutdowns and Industry Realignment
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 applications, evaluated complete operational division closure following law enforcement during internal strategic planning. 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 suspension.
During this period, industry associations and operators explored potential Supreme Court challenge options while acknowledging formidable legal obstacles. Concurrently, hundreds of sector professionals began public employment searches via social media, anticipating substantial workforce reductions in forthcoming weeks.
The federal GST council simultaneously 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 navigate these changes, whereas medium and smaller operators face “operational sustainability thresholds.” Industry experts emphasize that transparent regulatory frameworks, rather than prohibition paired with excessive taxation, maintain legal industry participation and establish sustainable development conditions.
Legal Classification Challenges: “Skill versus Chance” Definitions
Indian judicial precedent has traditionally separated skill-based and chance-dependent gaming categories. Fantasy cricket platforms, rummy, and poker utilized this classification, securing favorable court decisions as “skill-oriented” activities. Current legislation and tax modifications eliminate these categories, applying consistent stricter standards across previously “skill-classified” products. Fantasy sports, representing a primary mobile gaming catalyst in India, consequently faces potential revenue elimination.
Sports wagering maintains official prohibition status nationwide (excluding traditional horse racing exemptions). Practically, this established extensive underground markets, particularly cricket-centered, with estimated shadow economy transactions reaching tens of billions involving millions of participants. Complete RMG prohibition will likely channel consumer demand toward unregulated environments lacking oversight mechanisms, responsible gaming protocols, or tax contributions.
For international operators assessing India’s market potential, fundamental concerns extend beyond “skill versus chance” debates toward establishing legal frameworks that distinguish legitimate operations from underground practices. Industry consensus indicates only comprehensive regulation and licensing systems can balance consumer protection with revenue generation while encouraging sustained industry investment.
Self-Governance Mechanisms: Alternative Regulatory Pathways
2023 regulations introduced self-regulated organization (SRB) concepts designed to validate “approved” RMG services and implement transparent operational standards (including algorithmic fairness requirements). However, essential implementation components (procedural guidelines, decision-making structures, enforcement protocols) never achieved operational readiness, with multiple technical specifications removed during final approval stages. Without clearly defined SRB architectures, industry participants experience operational uncertainty while government agencies lack effective regulatory instruments.
Prohibition advocates reference addictive design elements, youth exposure risks, and social consequences (financial obligations, family disruption, criminal involvement). International evidence demonstrates that access restrictions without comprehensive support systems (educational programs, risk identification mechanisms, age verification, spending/time controls, assistance resources) generate limited long-term effectiveness. Younger users develop circumvention strategies, and issues relocate rather than resolve.
Industry communications to government representatives estimated Indian RMG enterprise valuations at approximately ₹2 trillion (~$23 billion), producing ₹310 billion (~$3.6 billion) revenues while contributing ₹200 billion (~$2.29 billion) annual taxation. Markets previously exhibited 28% compound annual growth rates with projections indicating potential 2028 doubling scenarios. Rapid prohibition implementation challenges employment sustainability, innovation capabilities, and tax revenue foundations while preserving illegal demand channels.
Considering proposed regulatory modifications, analysts highlight legal framework quality and intellectual property protection significance. International operators encounter brand counterfeiting within Indian markets, damaging consumer confidence and impeding legitimate service development plus partnership establishment. Companies emphasize that without conditions ensuring competitive parity for international businesses, substantial investments remain challenging.
India’s Counterfeit Gaming Infrastructure: Beyond Brand Imitation
Legal sector advancement encounters major obstacles from widespread counterfeit gambling brand proliferation. Indian fraudulent operators systematically establish replica websites and mobile applications imitating recognized international brands including major gaming platforms and established operators. These deceptive sites replicate corporate identity and operational functionality, misleading consumers. CUTS International analysis indicates illegal platforms—including counterfeit versions targeting users of legitimate services—generated over 5.4 billion visits during fiscal 2025 period. This volume exceeds major digital enterprises, demonstrating the challenge’s scope.
Counterfeiting methodologies utilize various techniques. Pre-developed “clone-script” technologies enable rapid site deployment resembling established operators within days. Unauthorized mobile applications distributed through unofficial channels perfectly replicate legitimate platform interfaces. Telegram channels and automated systems receive extensive utilization—major operators consistently alert users regarding fraudulent Telegram bots collecting funds through deceptive “promotional programs.”
Government countermeasures include police operations, domain restrictions, and server confiscations by state cyber units, though effectiveness remains constrained. Offshore jurisdiction utilization, anonymous registrations, and cryptocurrency transactions complicate prosecution procedures and extend legal timelines. Brands consequently experience reputation deterioration while consumers remain exposed to fraudulent operations. Research demonstrates illegal sites specifically target younger demographics and financially vulnerable populations, promoting “immediate wagering” and unrealistic return promises.
Within this environment, established international operators emphasize that counterfeit prevention must integrate with regulatory policy formation. Otherwise, prohibition measures or taxation increases stimulate shadow market expansion, already exhibiting accelerated growth patterns.
Parimatch’s Strategic Framework: Regulation as the Path Forward
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 approach 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 preserves 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 serves consumer interests while supporting broader economic objectives.