India’s Online Betting Ban Fails to Curb Offshore Operations

India’s ban on online real money games (RMGs) has not eliminated illegal gambling, with offshore networks reportedly continuing operations. An investigation by the Enforcement Directorate (ED) revealed a banned gambling app and its associated websites are still active, laundering a significant amount of funds.

What Happened

A year ago, India enacted the Promotion and Regulation of Online Gaming Act (PROGA), which imposed a total ban on online real money games including poker, rummy, and cricket. The law included provisions for non-bailable warrants, imprisonment, and substantial fines to deter virtual casinos and bookmakers. It also asserted extraterritorial jurisdiction against offshore betting platforms targeting Indian citizens, according to The Economic Times.

Despite the legislation, a chargesheet reportedly filed by the Enforcement Directorate (ED) indicates that a banned gambling application and its associated websites, which have allegedly laundered ₹90,000 crore, remain operational and continue to manage a large number of panels. This finding represents the latest in the agency’s investigations into forex irregularities and money laundering, The Economic Times reported.

Key Details

• The PROGA law, enacted a year prior, banned online real money games including poker, rummy, and cricket, as reported by The Economic Times.
• The law permits non-bailable warrants, imprisonment, and fines to combat illegal online betting, as stated by The Economic Times.
• A banned gambling app and its sister websites are reportedly still operational, having laundered ₹90,000 crore, according to an ED chargesheet mentioned by The Economic Times.
• Authorities have frozen approximately ₹2,000 crore in assets linked to the app and arrested some mid-level individuals in India, while alleged orchestrators operate from locations in the Gulf and hold Vanuatu citizenships, The Economic Times reported.
• The alleged kingpin of the illegal betting empire is reportedly directing operations from a prison in Oman, assisted by bookmakers and hawala agents to manage funds, according to The Economic Times.

Why It Matters

The continued operation of illegal online betting networks, despite a comprehensive ban, highlights a disconnect between legislative intent and effective enforcement, as noted by The Economic Times. The law’s rapid undermining suggests potential challenges in regulating complex, technology-driven sectors. The Economic Times article posits that this situation reflects broader issues in governance when confronted with 21st-century technologies and 19th-century governance structures.

The failure to curb illegal gambling means that the associated issues, such as financial ruin and deaths reportedly linked to online betting, may persist, according to The Economic Times. The article also draws a parallel with cryptocurrency regulation, suggesting that an absence of clear policy, as observed in the past with online betting, can lead to uncontrolled practices and potential market instability. The situation underscores the difficulties in balancing rapid technological advancements with regulatory frameworks in emerging digital economies.

What’s Next

States are engaged in jurisdictional disputes regarding the regulation of offline gambling, with Haryana having recently passed a related law. A case challenging the constitutional validity of PROGA and federal overreach is scheduled for review on October 6-7, as reported by The Economic Times.

Originally reported by The Economic Times·Published 27 Sep 2026, 17:47