Offshore Betting Apps Draw Indian Users After Curbs On Domestic Platforms

Offshore betting and gaming platforms are beginning to attract more Indian users after authorities tightened rules around several real-money gaming apps, raising concerns about potential fraud and the movement of money outside the country’s regulatory framework. While the government’s action was aimed at addressing risks linked to online gambling and misleading promotions, market watchers say overseas operators are now stepping into the space left behind.

The trend was recently highlighted by Zerodha co-founder and chief executive officer Nithin Kamath. In a social media post, Kamath pointed out that a growing number of gaming and betting apps based overseas are quietly gaining traction among Indian users, according to a recent report by Business Today. Because these platforms are located outside India, they do not fall under the same regulatory supervision that domestic financial services are subject to.

That difference, he indicated, can expose users to risks if something goes wrong. Without the backing of local regulation, it may be difficult for individuals to resolve disputes or recover funds in case of problems. Kamath also noted that tracking the movement of money associated with such apps can be complicated, particularly when payments pass through multiple channels.

People tracking developments in the digital economy say the situation underlines how easily online platforms can reach users across borders. Even if action is taken against platforms operating within the country, apps or websites based abroad can still reach users in India through the internet.

How These Apps Are Reaching Users

One reason these offshore betting apps are being noticed more is the way they promote themselves online. Posts on social media and collaborations with influencers are commonly used to attract attention. Many such promotions highlight how quickly someone can create an account and begin playing, which can prompt people to try the platform just to see how it works.

Opening an account on many of these platforms does not take much effort. A user can often register and start playing within a few minutes. The amount needed to get started is usually quite small, which can make the activity seem relatively harmless to someone trying it for the first time. For some people, this low starting point becomes an entry into repeated participation.

Observers say such strategies make the platforms especially attractive to younger audiences who spend a significant amount of time online. Regular promotional messages, bonus offers, and reward schemes are then used to keep users engaged once they have joined.

At the same time, the fact that these services operate outside India adds to the difficulty of regulation. If authorities block one website or application, another version may appear under a different name. This ability to shift quickly across domains makes enforcement challenging.

Payment Flows May Hold The Key

Kamath indicated that one possible way to deal with the problem is to look closely at how money moves to these platforms. If sending funds to such apps becomes more difficult, their ability to attract users in India may naturally decline. Banks and payment service providers may be able to help by identifying accounts connected with offshore betting operations and restricting transactions linked to them. Limiting the ability to receive funds from Indian users could weaken the platforms’ operations in the country.

Financial sector experts say payment trails are often easier to track than websites or apps themselves. Websites and apps can easily reappear under new names or domains, but financial transactions passing through banks or payment systems are usually easier to trace. Even so, dealing with the issue would require regulators, banks, and payment networks to coordinate their efforts. The task is not simple because these operators often switch the payment routes they use, making it harder for authorities to keep track of the transactions.

Users, therefore, need to be careful while dealing with such platforms. Services that run outside India’s regulatory system may not offer the same level of protection as regulated ones. If a problem crops up or the money gets stuck, getting it sorted or recovering the amount may turn out to be quite hard.