Nithin Kamath suggests how to curb offshore betting apps mushrooming after real money gaming ban

Zerodha co-founder Nithin Kamath has warned that offshore betting and money-gaming apps are rapidly proliferating after India banned real-money online gaming platforms, raising concerns about fraud and unregulated financial flows.

Citing an ET Tech report in a post on X, Kamath said many of these platforms operate from overseas and often target Indian users through aggressive online promotions. He suggested that one way to curb their spread is by restricting their ability to move money through domestic payment systems.

“After the real-money gaming ban, these offshore money-gaming apps (many of them scammy) are mushrooming,” Kamath wrote. “The best way to stop them is to make money transfers difficult by ensuring these offshore apps cannot use UPI, and that banks actively block such accounts.”

His comments come months after the Indian government introduced sweeping restrictions on online gaming involving monetary stakes.

Also Read: Banned in India, but it’s business as usual for offshore real money gaming firms

India’s Parliament passed the Promotion and Regulation of Online Gaming Act, 2025, which effectively prohibits all real-money online games and betting platforms. The law bans the offering, promotion or facilitation of games where users deposit money to participate, while also restricting advertising and financial transactions linked to such services.

The move marked one of the biggest regulatory interventions in India’s digital gaming sector. Real-money gaming had grown into a multi-billion-dollar industry in the country, with fantasy sports, rummy and poker apps attracting millions of users and billions in venture capital funding.

Before the ban, the segment formed the backbone of India’s gaming ecosystem. Industry estimates suggested the real-money gaming market generated more than Rs 27,000 crore in revenue annually and supported hundreds of startups and thousands of jobs across the country.

However, the government argued that such platforms posed significant risks. Policymakers cited concerns ranging from financial losses and addiction among young users to potential links with money laundering and tax evasion. As a result, the new law eliminated the earlier distinction between games of skill and games of chance, banning all forms of online gaming that involve real-money participation.

The policy shift forced several major platforms to halt their paid gaming operations almost immediately. Companies such as Dream11, Mobile Premier League, PokerBaazi and Zupee suspended their real-money formats to comply with the legislation.

The offshore apps typically operate outside Indian jurisdiction and may not follow consumer protection or anti-money laundering rules. Law enforcement agencies have already reported cases of illegal betting networks using multiple bank accounts and digital payment channels to move funds linked to such platforms.

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