While the Indian government has cracked down on real-money gaming, esports bettors continue to access offshore platforms to gamble.

The government blocked an additional 242 websites last week that violate the country’s strict anti-gambling laws. Since 2022, the country has restricted access to over 7,800 platforms.

Despite the actions, the country continues to see heavy traffic to offshore betting platforms. Storyboard18 reports that India accounts for 13.48% of global visits to the online gambling site Stake. Only in Canada, where users can legally access the site, are there more Stake users. 

Additionally, traffic to other offshore sites remains high, with hundreds of thousands of Indian gamblers accessing other sites, including Parimatch and 1xBet. 

Stricter Laws Not Reducing Gambling Yet

Last year, the Promotion & Regulation of Online Gaming Bill (PROGA) placed further restrictions on real-money gaming, banning fantasy sports and skill games. 

Jay Sayta, a technology and gaming lawyer, noted that the regulations have still not been formally brought into force. There have, therefore, been few changes in the accessibility of gambling sites. 

Sayta stated, “Five months have elapsed, but PROGA has not been brought into force yet. The central government claims to have blocked 242 gambling websites recently and over 7,800 over the years, but the fact remains that there are thousands of such illegal betting websites still operating and flourishing.”

Promoting Esports While Banning Gaming

At the same time, the bill promotes esports, investing in training and infrastructure. Indian Prime Minister Modi said he wants the country to become a leader in gaming, but voiced strong opposition to gambling. 

Yet the two often go hand in hand, with esports fans increasingly seeing gambling adverts during coverage of high-profile events. 

MIBR became the first Valorant team to take advantage of Riot Games’ decision to allow betting sponsors. The team announced a deal with gambling platform 1xBet, which continues to see high traffic in India. 

Indian gaming companies have campaigned against the new laws in the country, arguing that they have led to huge job losses and a negative economic impact. 

Indian Companies Losing Out

Amrit Kiran Singh, President of the Skill Online Games Institute (SOGI) said that while Indian companies are losing out, companies in other countries are gaining a foothold by targeting users in the world’s most populous country.

Singh stated, “The only victims of this ill-advised ban are honest Indian gaming companies. The only gainers are Chinese gaming companies operating from locations such as Cyprus and Estonia.”

He stressed that it is impractical to implement widespread bans on internet gaming in the modern era, as technology can easily circumvent such restrictions. He added, “VPNs and domain farming make it impossible to block platforms. Crypto and mule accounts facilitate all kinds of monetary transactions.”

Korean gaming company Krafton is investing in the legal gaming market, promising to spend $50 million annually over the next 3-4 years. 

Offshore gambling platforms require little investment to continue profiting from Indian gamblers who use VPNs to access platforms. 

While the government continues to block websites, the market seemingly thrives as users seek ways to bypass regulations.