The meteoric rise of online betting apps in India has been followed by an equally dramatic crackdown, leaving many users and the industry in a state of flux. What was once a booming market, fueled by affordable internet, smartphone penetration, and aggressive marketing, is now facing severe restrictions and outright bans.
Between 2019 and 2024, many Indians were drawn to the allure of quick riches offered by real money games (RMG) on online platforms, which included poker, fantasy sports, and other games. However, this rapid growth also brought to light a darker side, with many individuals, like Kartik Srinivas, falling into severe debt and addiction. Srinivas, who lost over 1.5 million rupees, exemplifies the financial distress that many users faced.
The Indian government has responded to these concerns by implementing strict measures, including banning numerous betting apps. A key development is the Online Gaming Bill 2025, which has been cleared by the Union Cabinet and introduced in the Lok Sabha. This bill aims to regulate the online gaming space, addressing rising fraud cases and protecting consumers from the harmful effects of gambling. The new law makes offering or enabling such services punishable, with a jail term of up to three years and a fine of up to 10 million rupees. Promoting them carries penalties of two years and 5 million rupees, though users are treated as victims, not offenders.
Several factors contributed to the initial boom of betting apps. The increasing availability of affordable internet and cheap smartphones created a large potential user base. Aggressive marketing strategies employed by these platforms further fueled their popularity. The promise of easy money and the desire for quick financial gains, particularly among the youth, also played a significant role.
However, this surge in popularity also led to significant concerns. A report by the Digital India Foundation revealed that major platforms recorded a staggering 1.6 billion visits in just three months, highlighting the scale of online gambling activities. The Enforcement Directorate (ED) has also raised concerns about money laundering and the use of rigged algorithms in these apps, which can lead to financial ruin for individuals and families. The World Health Organization (WHO) has also stated that gambling can threaten health and increase the incidence of mental illness and suicide.
The government's crackdown includes blocking orders against illegal platforms and potential penalties for celebrity promoters. For example, cricketer Suresh Raina was questioned by the ED regarding his endorsement of the 1xBet app. The Online Gaming Bill 2025 proposes banning all money-based online games, stopping ads, and blocking payments to such apps. Banks and UPI services may be barred from processing transactions related to these platforms.
While the government defends these measures as necessary to protect consumers, some industry stakeholders argue that the ban is a knee-jerk reaction that cripples a thriving sector. They suggest that a more regulated approach would be more effective in protecting users while allowing legitimate businesses to operate.
For users, the new regulations mean that deposits and withdrawals to money-gaming apps could be blocked. Ads and influencer promotions for such apps are likely to disappear. While using offshore or mirror sites might seem like an option, it remains risky and unlawful. The government's actions reflect a broader effort to ensure safety and curb illegal activities in the online gaming space. Several fantasy sports platforms such as Dream11, My11Circle, and MPL operate legally in India as games of skill, offering a safer alternative.
