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Business Standard
13 hours ago
- Business
- Business Standard
Real-money gaming dealt a losing hand as crackdown follows ₹20,000 cr blow
Mounting social concerns and an estimated ₹20,000 crore loss by nearly 450 million people due to frauds in real-money gaming (RMG) have pushed the Centre to impose a blanket ban on the sector. The decision comes amid alarm over opaque algorithms, user addiction, and widespread financial distress linked to games such as rummy, poker, and fantasy sports. The ban not only ends the long-standing debate over whether skill-based or chance-based games can operate in India but also overrides the patchwork of state-level rules on regulating or prohibiting the sector. Experts and industry players warn that the move could backfire by driving users towards unregulated offshore betting platforms. 'Government needs to reconsider and take a more calibrated stance, as prohibition has never worked. This Bill will bring back the satta market with a vengeance. Blanket bans drive users to unregulated platforms rather than protecting them. Instead of reducing harm, prohibitions create black markets that are harder to regulate and far riskier for users,' said Abhay Raj Mishra, president and national convenor of Public Response Against Helplessness & Action for Addressal (PRAHAR). PRAHAR's July 2024 survey of 2,500 gamers in Telangana, where RMG has been banned for eight years, found more than 94 per cent of players still accessing offshore or illicit apps through virtual private networks, Telegram groups, or sideloaded platforms. Industry executives also flagged the dominance of offshore operators, who already control nearly 80 per cent of the RMG market and run operations from tax havens such as Malta, Curaçao, and the British Virgin Islands. 'We continued to absorb high tax costs to keep users engaged. But if costs are passed on, users will simply migrate to untaxed offshore platforms,' said one senior executive. The ban comes even as the sector was reeling under a 28 per cent goods and services tax (GST) imposed in October 2023. More than 400 companies employ 200,000 people in the sector, estimates show. Major players include Dream11, Games24x7, Junglee Games, MPL, Zupee, Gameskraft, Head Digital Works, and Nazara Technologies. The decision has jolted the industry, which until recently was preparing for the impact of a steeper tax rate on margins. 'What has surprised the industry is that the Bill has been tabled without any consultation. We were not aware of this Bill until Tuesday,' said another senior executive. Founders and executives told Business Standard they were questioning the Centre's intent behind a blanket prohibition, especially after years of contributing through taxes, compliances, and outreach. They pointed out that the move came just days after rumours of a higher 40 per cent goods and services tax (GST) slab, categorising gaming as a 'sin' commodity — something they had already deemed unsustainable. 'Why was there revised GST chatter when the sector was supposed to be killed?' asked the founder of an RMG company. A joint report by the US-India Strategic Partnership Forum, the Interactive Entertainment & Innovation Council, and WinZO said the Indian exchequer loses $2.5 billion annually in tax revenues due to user migration to offshore companies. 'From an economic perspective, the prohibition is likely to hurt an industry that contributes heavily to GST collections and employment, while simultaneously driving users to offshore, unregulated platforms,' said Navod Prasannan, partner, King Stubb & Kasiva, Advocates & Attorneys. Between 2022 and 2024, the Ministry of Electronics and Information Technology issued blocking directions to 692 gambling and betting websites and apps. 'We acknowledge the government's decision to ban RMG and respect that this step has been taken after careful consideration of the social and regulatory concerns associated with the sector. As responsible stakeholders, we recognise the government's priority to safeguard consumer interests, prevent harm, and ensure that innovation aligns with national well-being,' said Shweta Rajpal Kohli, president and chief executive officer (CEO), Startup Policy Forum. Casual games level up? The Bill proposes recognition for e-sports where games do not involve wagering and rely on factors such as mental agility or strategic thinking. Currently, categories such as casual, midcore, or AAA-rated games depend on advertising or in-app purchases for revenue. A void in the RMG space may steer users towards e-sports, with the sector welcoming the Centre's decision. 'I welcome the Centre's decision to prohibit RMG and establish a strong regulatory framework. Too many young lives were being lost to addiction and debt. This decisive step safeguards our youth while unlocking the future of Indian gaming, driven by original intellectual property (IP), creativity, and Make in India games,' said Vishal Gondal, cofounder of nCore Games. Ecosystem participants added that the move is expected to drive stronger IP development in the country. 'We applaud this decision, as it allows us to focus on the real concerns as a business — monetisation, retention, and most importantly, building great IP for India and the world, rather than having to explain to our audiences what we are to begin with,' said Sumit Batheja, CEO and cofounder of Ginger Games.
Hans India
01-07-2025
- Politics
- Hans India
Telangana's blanket ban is turbo-charging the offshore online sports betting and casino economy, kills domestic gaming industry: finds PRAHAR consumer survey
A new report from Delhi-based civil society group PRAHAR (Public Response Against Helplessness and Action for Redressal) has uncovered the persistent rise of offshore online sports betting and casino platforms in Telangana despite a sweeping state-wide ban on all kinds of online real-money platforms. The study reveals how sports betting and casino operators—most of them foreign offshore entities—continue to engage users directly through aggressive digital marketing, celebrity endorsements, and encrypted platforms, circumventing enforcement and raising critical threats to digital sovereignty and public safety. The study titled Click. Bet. Repeat: Consumer Survey on Forces Driving Online Betting and Gambling in Telangana, is based on a comprehensive field study of 2,671 respondents who indulge in real money gaming . It uncovers how foreign betting operators target Indian users through online ads, YouTube videos, Telegram groups, and meme pages, often using local influencers to add legitimacy. Explains Mr. Abhay Raj Mishra, President & National Convenor of PRAHAR: 'Telangana led the way in 2017 with a blanket ban on all online real-money plays—skill or chance—without even drawing a line between legal and illegal play. What was hailed as a bold move has, in reality, created the perfect storm for offshore sports betting and casino to thrive unchecked.' 'Eight years on, the evidence is undeniable: the ban has failed. Instead of protecting citizens, it has driven domestic operators out and handed the market on a silver platter to offshore betting syndicates. This has left users more vulnerable than ever. The newly formed SIT has its work cut out—but let's be clear: more bans and crackdowns won't solve what is now a deep-rooted menace undermining national security.', he adds Calling out strong recommendations, Mr. Mishra said 'Telangana has a rare second chance. The first, cautious step was a blanket ban; the wiser next step is bold, inclusive policy. Citizens have already moved on—real-money gaming isn't vanishing, it's evolving. The ask isn't to rubber-stamp vice, but to stay ahead of its risks by providing clean avenues for people to play real money games of skill, instead of sports betting and casino. Lead with foresight, not fear, and turn a growing reality into a safer, transparent system that works for everyone.' KEY FINDINGS Illegal, but popular, making national security a casualty 96% of users know real money gaming in Telangana is banned, yet participate in sports betting and casino, with 87% playing daily. This has pushed domestic online platforms away from Telangana, paving way for more sinister activities, with a significant national security risk. Who's Playing — a young, mostly male, broadly educated crowd Nearly two-thirds of users are under 30 (45 % are 18-25 and 17 % are 26-30), and men outnumber women four to one (78 % vs 22 %), yet at 22% women participation is significant. Education is mixed: while 42 % stopped after school, 50% hold a college degree. Students (35 %) and salaried professionals and self-employed (52 %) dominate the occupation split, and the activity cuts across income levels even though 60 % come from households earning under ₹30 000 a month. Getting In and Paying Up — offshore apps, easy work-arounds, anonymous wallets Stake, colour-prediction apps, 1xBet, 1win and Teen Patti are the five most-tried platforms (each 47–70 %). Access is effortless for 89 % of players, with 69 % relying on VPNs to hide their real identity and another 20 % using Telegram links to dodge geo-blocks, and also because they are provided with VPN links in these Telegram groups. Almost everyone plays incognito: 94 % skip real-name KYC, and 86 % fund accounts via UPI transfers routed through friends or agents, indicating existence of mule accounts, far ahead of wallets (14 %), cash (8 %) and cards (6 %). Usage Intensity — daily play, modest tickets for most Engagement is extreme: 87 % log in every day. Seven in ten spend ₹500–₹2 000 a month and 73 % keep wagers below 1 % of household income, yet 12 % already risk 5 % or more, signalling an at-risk minority. Wins, Losses and the 'I'm Ahead' Illusion Losses are almost universal (99 %), but so are wins (99 %). Four-fifths have lost between ₹1 000 and ₹10 000, while 71 % have won in the same band; about one in five have crossed the ₹10 000 mark on winnings and 5 % on losses. The near balance feeds the belief—held by 83 %—that they are net positive overall. Mindset & Motivations — chasing quick cash and social proof A spectacular 97 % play for the chance of quick money, 61 % cite entertainment, and half mention social acceptance. Tales of huge payouts lure 87 % into their first game and remain the chief reason (86 %) that grim media stories of debt or suicide do not scare them off. Players also underestimate danger: 64 % think fewer than 1 % of gamblers get into serious trouble. Consumer Sentiment — ban rejected, legalizing welcomed Almost everyone (96 %) knows the pastime is illegal in Telangana, yet plays anyway; 94 % now want the state to legalise and regulate real-money gaming, while only 6 % back the current blanket ban.
The Hindu
27-06-2025
- The Hindu
Offshore betting thrives in Telangana despite blanket ban: Study
Despite Telangana's blanket ban on online real-money gaming, 87% of users still bet daily, mostly on offshore casino and sports platforms, according to a latest survey by a civil society organisation — Public Response Against Helplessness & Action for Redressal (PRAHAR). According to the study 'Click. Bet. Repeat', 96% of the respondents, who all indulge in real-money gaming, are aware that such activity is illegal in Telangana. Yet a staggering 87% report betting daily, primarily on offshore sports betting and casino platforms that operate beyond the reach of Indian law. Based on responses from 2,671 users, the study captures the widespread reliance on foreign operators and the easy circumvention of legal restrictions. Nearly 89% said they face virtually no barriers to accessing these platforms. VPNs, Telegram links, and anonymous wallets have become common workarounds, with 94% of users bypassing real-name KYC protocols and 86% funding their accounts through UPI transfers via agents or friends. Stake, 1xBet, 1win, Teen Patti 979, and colour-prediction apps emerged as the most frequently used platforms. Users reported being targeted through social media advertisements, influencer promotions, WhatsApp messages, and calls, indicating the depth of digital outreach these operators deploy. The user base is predominantly young, male, and digitally savvy. Around 62% are under 30, and while men dominate at 78%, women account for a significant 22%. The activity cuts across income brackets, with 60% from households earning below ₹30,000 per month. Despite frequent losses — 99% have lost money — most respondents still believe they are net gainers. 'The average monthly spends between ₹500–₹5,000 may seem minor, but add up significantly over time, especially for low-income users,' the report said. Interestingly, while awareness of the ban is nearly universal, 94% of respondents want real-money gaming platforms to be legalised and regulated in the State. PRAHAR president Abhay Raj Mishra said the findings illustrate a policy failure. 'What was seen as a bold preventive measure in 2017 has only succeeded in driving out domestic operators and inviting offshore syndicates to dominate the market. The result is a thriving grey economy that undermines national security and digital sovereignty,' he said.
Hans India
02-05-2025
- Politics
- Hans India
Alarming Rise in Online Gambling and Betting in Telangana Since 2017: PRAHAR Announces State-Wide Citizen Survey to Understand Public Expectations
Despite being the first Indian state to enforce a complete ban on online gaming back in 2017, Telangana continues to witness a dramatic rise in illegal online gambling and betting activities. Fueled by foreign platforms, anonymous digital transactions, and unregulated mobile apps, this underground ecosystem has grown more sophisticated, elusive—and dangerous. PRAHAR (Public Response Against Helplessness and Action for Redressal), a Delhi based NGO working at the intersection of digital governance and national security, has announced the launch of a large-scale citizen survey across 2,500 respondents in Telangana. The objective is to understand how people perceive online betting and gambling vs online gaming, what they want from regulation, and how compliance can be ensured by building alignment between public expectations and government actions. 'Our research shows that while the rapid penetration of the digital ecosystem across India—even at the grassroots level—is tremendously empowering, it has also introduced new vulnerabilities. Hidden players are actively exploiting this space to advance their agendas. In the absence of a strong national regulatory framework, illegal betting and online gambling platforms are being weaponized as financial engines and recruitment gateways. There is growing evidence to suggest that these syndicates are linked to actors and invisible hands with far more sinister intentions—aimed at undermining India's sovereignty and political stability,' said Abhay Raj Mishra, President and National Convenor of PRAHAR. 'It is essential that we understand what the people of Telangana want—not just for better compliance, but also for social consensus. Compliance becomes natural when there is no conflict between public expectations and government actions. That is why we are launching this survey.' This new initiative builds upon two recent PRAHAR research studies. The first, titled 'The Invisible Hand', uncovered how foreign-owned digital platforms are being used to entrap Indian users and funnel them into a cycle of financial exploitation, data theft, radicalisation, and identity compromise. According to projections in the report, India could face up to 17 trillion cyberattacks annually by 2047. In Telangana specifically, cybercrime cases linked to online gambling rose by over 800% between 2020 and 2025, with money laundering, youth suicides, and celebrity-endorsed betting apps all forming part of the challenge. The second research effort was a comprehensive survey conducted among 5,000 youth across Tamil Nadu—Chennai, Coimbatore, Madurai and Tiruchirappalli—focused on their attitudes and behaviours towards online gaming. Strikingly, 75% of participants could not distinguish between legal and illegal gaming platforms, while 86% were against any form of state-imposed limits on gameplay time or money. This reflected a broader insight: young Indians are not opposed to regulation, but they reject blanket bans that offer no clear legal or safe alternative. These insights are particularly relevant for Telangana, which banned all forms of online gaming, including games of skill, in 2017. Yet over the years, illegal networks have not only survived but scaled. In 2025 alone, over 3,900 betting-related violations were recorded in the state, and 25 celebrities and influencers were booked for promoting banned betting platforms. The use of VPNs, Telegram groups, foreign-hosted servers, and proxy agents has rendered enforcement incredibly complex. Additionally, tragic incidents of suicide among young bettors burdened by debt have made headlines in recent months. What emerges from this is a worrying paradox: prohibition in law has not translated to prevention in practice. And citizens are often left with little understanding of what is legal, what is not, and how to make informed choices in the absence of credible, accessible platforms. To address this gap, PRAHAR's Telangana survey will explore three key dimensions—awareness, usage, and aspirations. What do citizens know about betting laws? How do they engage with online platforms? And what kind of framework do they believe can work for them, their families, and society at large? 'Our role is not to prescribe a policy solution for Telangana,' added Mr. Mishra. 'Our role is to help surface the voice of the people—because when regulation reflects public will, it doesn't need enforcement. It earns voluntary compliance.' The survey results, expected in a months' time, will be shared with policymakers, civil society, and the public to foster a data-driven conversation on what regulation should look like in a digitally empowered, yet secure, India.
