India launches a blanket ban and disrupts the online gambling market

Online gambling in India is facing the most sweeping reform in the sector’s history. The country’s authorities are imposing a total ban on online gambling, including fantasy sports and card platforms, affecting 450 million users and wiping out a market worth £1.8 billion. Millions of players and the largest companies are being forced to urgently change their strategies to avoid being forced out of the market, while the economy and society bear the brunt of such a drastic change.

India takes drastic measures and cites reasons for the ban

The Indian government is introducing a blanket ban on online gambling, extending it to all forms of internet betting, including popular fantasy sports platforms. Fantasy sports is a type of online game where participants form virtual teams from real athletes and earn points based on their performance in actual matches. In India, fantasy sports have become especially popular due to the widespread love of cricket and other sports, and platforms like Dream11 have gathered hundreds of millions of users.

The authorities cite two key reasons for the ban: to combat gambling addiction and concerns about terrorism financing through illegal betting. According to officials, online gambling allegedly provokes an increase in the number of addicted players and can be used for money laundering. Asia already has examples of countries with very strict gambling laws, such as Singapore and China, where strict regulations and harsh penalties are in place for violations.

Major platforms lose revenue and completely revamp their business

Market leaders such as Dream11 are being forced to withdraw cash prizes and switch to alternative systems, offering electronics or cars instead of money. Dream11 has already terminated its sponsorship of the Indian Premier League cricket, terminating a £34 million contract and completely ending cooperation with major sports organizations. Operators are urgently revamping business models, as violations of the new rules now face up to five years in prison.

The key consequences for operators can be listed as follows:

• Loss of revenue from betting and paid contests
• Termination of advertising and sponsorship contracts
• Job cuts and the departure of specialists from the industry

Players look for workarounds and massively switch to foreign sites

The restrictions are pushing users to look for workarounds: players use VPN services and foreign payment systems to continue betting on offshore platforms. Many say that gambling has become part of their daily lives, and even new laws do not stop them from seeking alternatives. For example, Mumbai resident Adarsh Sharma explains that the habit of online gambling compels them to seek any opportunity to continue playing, despite the bans.

Switching to foreign sites brings new risks for players, as unregulated platforms often do not provide protection against fraud and do not guarantee payout of winnings. Such growth of the black market creates additional problems for regulators, who lose control over a significant part of the industry.

How the new law has affected sports betting apps

Statistics on downloads of such apps by Indian users have shown unexpected results. At first glance it may seem that such bans reduce the number of downloads, but the opposite effect actually occurs. This is especially true in the case of betting on sports popular in the country, such as cricket.

To clarify the accuracy of the statistical data, we turned to the results of search engine queries. A request to the authors of several top sites confirmed the statistics. Thus, representatives of the resource that offers download Pin-Up cricket betting app noted a significant increase in the number of downloads.

This trend is linked to two factors. First, users believe that apps are harder to block. Second, players use the opportunity to actively place online bets while the legislation does not provide for any punishment for them. However, players and teams do not receive their money in such cases.

The cricket market loses money and faces the threat of an advertising crisis

The ban on online gambling leads to the disappearance of 40% of the Indian Premier League’s advertising revenue, as fantasy platforms were the largest sponsors. These funds played a key role in the development of sports, supporting clubs and financing broadcasts, as well as ensuring the operation of the media industry. Experts warn that the value of media rights for broadcasts of cricket may drop significantly, and the entire sports ecosystem will be at risk.

The consequences for related industries include:

• Decreased revenues for sports clubs and teams
• Losses for advertising agencies and marketing companies
• Reduction of investment in sports projects and infrastructure

Analysts discuss the pros and cons of the new rules

Supporters of the ban expect that the new measures will help reduce the number of addicted players and strengthen control over cash flows in the industry. However, critics point to negative effects: the growth of the illegal market, loss of tax revenues, and reduced transparency of operations. Industry representatives believe that the ban will lead to economic losses and capital flight, while the players themselves speak of a restriction of freedom of choice.

A brief list of the arguments of the parties is as follows:

• Authorities — concern for the health and safety of citizens
• Industry — concerns about economic losses
• Players — dissatisfaction with the restriction of their own rights and freedoms

The weak point of the reform is the inability to fully control offshore platforms, which creates risks for users and undermines the effectiveness of the ban.

Why India’s experience is controversial and serves as a lesson for other countries

India is choosing one of the strictest paths of online gambling regulation, introducing not only a blanket ban but also real prison terms for violators. This experience is already being discussed in other countries, where authorities are considering similar measures or looking for alternative ways. For example, the UK and Australia prefer to regulate the market through licensing and taxation, trying to find a balance between protecting citizens and supporting the industry.