The proliferation of offshore money-gaming platforms targeting Indian users has sparked serious concerns regarding accountability and user safety. These platforms, which often operate from outside India’s regulatory framework, have become increasingly prominent due to aggressive online marketing strategies and seamless payment options. Nithin Kamath, the founder and CEO of Zerodha, has voiced his apprehension, stating that many of these offshore platforms navigate a grey area that could potentially expose users to scams and financial liabilities.

Surge in Offshore Betting Apps

Following the imposition of restrictions on numerous real-money gaming platforms, there has been a notable increase in the presence of offshore betting applications across social networking and messaging services. These applications typically employ assertive promotional tactics through influencers and digital advertisements, effectively attracting users to download and engage in betting activities related to sports events and online casino games. Observers of the industry have noted that the barriers to entry are remarkably low, often requiring users merely to top-up an online wallet and complete a simple registration process to start wagering.

Convenient Payment Systems Fuel Popularity

The swift adoption of these platforms can be attributed, in part, to the ease of payment methods available. Many of these apps are integrated with familiar digital payment solutions, allowing users to make deposits as effortlessly as handling routine bill payments. This accessibility can lead individuals to overlook the fact that their funds are being directed to offshore entities that function outside the jurisdiction of Indian regulations.

Attractiveness of Low Initial Deposits

Another element contributing to the popularity of these apps is the minimal initial investment required to start gaming. Some platforms permit users to initiate their betting activities with deposits as low as a few hundred rupees. This feature proves particularly appealing to younger users and novices who may perceive it as a benign trial. Nevertheless, industry experts caution that the risks associated with these operations can be significant, especially when users encounter challenges withdrawing their earnings or if the platforms suddenly cease to function.

Kamath Advocates for Payment Channel Restrictions

In light of these concerns, Kamath has proposed that limiting the access of offshore gaming platforms to payment systems could be an effective strategy for curtailing their growth. He advocates for obstacles to money transfers, suggesting that offshore applications should be prevented from utilizing UPI and urging banks to actively obstruct such accounts. His recommendations center around disrupting the financial pathways that facilitate the smooth operation of these gaming platforms.

Legislative Actions to Mitigate Online Gaming Risks

Concurrently, legislators are taking proactive measures to address the risks associated with online gaming through the Promotion and Regulation of Online Gaming Bill, 2025, which was passed by Parliament on August 21, 2025. This legislation aims to safeguard citizens from the hazards of online money gaming while establishing a regulatory framework for various forms of online gaming. The proposed law seeks to tackle issues including addiction, financial losses, and social distress resulting from misleading platforms that entice users with promises of quick wealth.

Challenges in User Protection

Users frequently become aware of the associated risks only after experiencing difficulties with fund withdrawals or account access. Given that many of these platforms are based in foreign jurisdictions, resolving conflicts can prove to be exceptionally challenging. Experts in the industry contend that fostering better coordination among regulators, banking institutions, and digital payment systems could be vital in preventing the further proliferation of such platforms. Kamath’s warnings underscore the growing complexities within the digital economy, where rapid technological advancements and aggressive marketing often outpace regulatory measures.

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