A growing number of offshore money-gaming platforms are finding their way to Indian users through aggressive online advertising and simple payment systems. Because many of them operate from outside the country, questions are being raised about accountability and user protection.
Nithin Kamath, founder and CEO of Zerodha, has cautioned that such platforms often operate in a grey area and may expose users to scams and financial risks.
After restrictions were imposed on several real-money gaming platforms, many offshore betting apps have started appearing across social media and messaging platforms.
These apps often promote themselves aggressively through influencers and online advertisements. Users are encouraged to download the apps and start betting on sports matches, casino games and other online games.
According to industry observers, the entry barrier is extremely low. In many cases, users only need a quick online wallet top-up and a simple sign-up process to begin playing.
Nithin Kamath recently . “After the real-money gaming ban, these offshore money-gaming apps (many of them scammy) are mushrooming,” Kamath said.
One of the biggest reasons these platforms are spreading quickly is the ease of making payments. Many of them are linked to digital payment methods that users are already familiar with.
Deposits can often be made using popular payment systems, making the process as easy as paying a bill or recharging a phone.
Because of this convenience, users may not always realise that they are sending money to offshore platforms that operate outside India’s regulatory framework.
Another factor driving growth is the small amount of money required to start playing. Some platforms allow users to begin with deposits as low as a few hundred rupees.
This makes the apps particularly attractive to younger users and first-time bettors who may see it as a harmless experiment.
However, experts say the risks can be significant, especially when winnings become difficult to withdraw or when platforms disappear suddenly.
Kamath believes the most effective way to control the spread of such apps is by limiting their access to payment systems.
“I think 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,” he said.
His suggestion focuses on restricting the financial pipelines that allow these platforms to operate smoothly.
At the same time, policymakers have also started taking steps to address the risks linked to online gaming.
The , passed by Parliament on August 21, 2025, aims to protect citizens from the dangers of online money games while creating a regulatory framework for other forms of online gaming.
The legislation seeks to tackle problems such as addiction, financial losses and social distress caused by misleading gaming platforms that promise quick wealth.
Many users only realise the risks after facing difficulties with withdrawals or account access. Since several of these platforms operate from overseas jurisdictions, resolving disputes can become extremely complicated.
Industry experts believe stronger coordination between regulators, banks and digital payment networks could play a key role in preventing such apps from spreading further.
Meanwhile, Kamath’s warning highlights a growing challenge in the digital economy, where technology, aggressive marketing and frictionless payments are often moving faster than regulation.