MeitY blocked 1,298 illegal gaming sites but offshore firms still thrive

Despite MeitY blocking nearly 1,300 illegal gaming sites, offshore betting and gambling platforms continue to operate in India through apps, VPNs and social media channels

Despite the Ministry of Electronics and IT (MeitY) issuing 1,298 directions between 2022 and 2024 to block online betting, gambling, and gaming websites, executives from real money gaming firms allege that non-compliant offshore platforms continued to thrive in India. 

 

Additionally, the Directorate General of Goods and Services Tax Intelligence (DGGI), in a note published in March, said it had blocked 357 non-compliant offshore RMG entities, with 700 more under scrutiny.

 

With the ban on homegrown RMG platforms, offshore entities are expected to thrive, cornering the entire Indian market through a web of channels on social media messaging platforms and proliferation of these apps operated from regulatory havens. 

 

“The cracking down on offshore platforms led us to believe that the centre was focussed on curbing these operators by working with the homegrown industry as partners. There were risk and analytics people advising the government on illegal money flows and suspicious behaviour,” an executive with knowledge of the matter said, requesting anonymity. 

 

Executives added that the industry co-operated with the government on cracking down the offshore entities during the past few months. Offshore entities continued to promote their services through outdoor advertising, despite government orders to block them, they said.

 

Executives noted that bans on legitimate operators in states like Andhra Pradesh and Tamil Nadu pushed RMG activity towards offshore companies in the past. 

 

They cautioned that after a complete ban is imposed on companies in India, there could be a rise in instances of financial distress and money laundering, since offshore entities are immune to regulatory scrutiny. “The demand does not evaporate because of this ban, the demand is still there. It's just that a different set of operators will be available now to fulfill that,” an executive said. 

 

PRAHAR's (Public Response Against Helplessness and Action for Addressal) 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 VPNs, Telegram groups, or sideloaded platforms.