Offshore betting cos eyeing legal entry into India amid regulatory vacuum: Stakeholders

With the Promotion and Regulation of Online Gaming Act (PROGA), 2025 yet to be notified, offshore betting and gambling platforms are increasingly exploring legal pathways to enter India, even as domestic real-money gaming (RMG) operators face a complete shut down under the current regime, say industry stakeholders.  

Industry sources indicate that several global betting companies are recalibrating their India strategy focusing on policy engagement, legal structuring, and compliance hiring in anticipation of a potential shift towards a regulated framework rather than an outright ban.  

Despite the legislative push to curb online betting via PROGA, 2025, enforcement gaps have enabled offshore operators to deepen their presence. According to Lumikai’s State of India Interactive Media Report 2025, nearly one in three Indian RMG users may have migrated to offshore betting platforms following the crackdown.

These include major international operators such as Bet365, Betway, 1xBet, NetBet and Paddy Power, which continue to operate outside India’s regulatory ambit and consumer protection safeguards.  

At the same time, several domestic gaming firms have scaled down operations as free to play or have shut operations in the wake of PROGA, highlighting what industry executives describe as a “policy paradox” where compliant entities exit while unregulated players expand.

Global gaming major Flutter Entertainment, which owns brands such as Junglee Rummy, FanDuel, PokerStars and Betfair, has in recent weeks strengthened its India-facing policy and legal capabilities. The company has onboarded Shivani Jha, a public policy lawyer and former EPWA head, as part of its broader effort to navigate the evolving regulatory landscape.

Industry stakeholders also point to increasing lobbying efforts aimed at reopening the market under a regulated structure. Amrit Kiran Singh, president of the Skill Online Games Institute (SOGI), said there is growing recognition within policymaking circles that the current ban may not be achieving its intended objectives.

“It is only a matter of time before the government revisits the framework,” Singh said. “However, any move to reopen the sector must ensure transparency and avoid concentration of market power among a few players.”

Legal experts say the current situation underscores structural challenges in India’s governance of online betting. Snigdhaneel Satpathy, partner at Saraf and Partners, noted that betting and gambling fall within the domain of state legislatures, while digital infrastructure such as intermediaries, telecom networks and cross-border payments comes under the Union government’s purview.

“This creates a fragmented regulatory environment,” Satpathy said. “A predominantly prohibitory approach, without coordinated enforcement between the Centre and states, risks producing a perverse outcome where compliant businesses withdraw, while unlawful operators expand through opacity.”

He added that the ecosystem enabling such platforms—including digital intermediaries, advertising networks, influencers and payment service providers equires stricter accountability. “A due diligence-based safe harbour framework may not be sufficient. A more durable outcome may lie in harmonised enforcement and a policy-level reassessment of whether a tightly regulated market is preferable to an enforcement-light prohibition,” he said.  

The legal uncertainty is further compounded by an ongoing case before the Supreme Court, which is examining whether the Centre or states hold the legislative competence to regulate online betting and gambling.

Vidushpat Singhania, managing director at Krida Legal, said the outcome of the case will be pivotal in shaping the future of the sector. “International betting companies have long advocated for a regulated market in India. Given the current constitutional questions and the enactment of PROGA, clarity from the Supreme Court is critical,” he said.

Singhania added that a regulated framework could address key consumer protection concerns. “Despite the ban, Indian users continue to access offshore platforms, often without any grievance redressal mechanisms. Regulation, rather than prohibition, may offer a more effective solution,” he said.

As policymakers weigh their options, the divergence between legislative intent and market reality is becoming increasingly stark. With offshore players entrenching their position and domestic operators retreating, the debate is shifting from whether to regulate online betting to how and who should control its future in India.