Nithin Kamath, founder and CEO of Zerodha, has cautioned that offshore betting and gaming apps are multiplying quickly in the aftermath of India's clampdown on real-money gaming platforms, flagging the risk of fraud and poorly monitored cross-border fund flows.
In a post on X, Kamath noted that many such apps are based overseas while aggressively marketing their services to Indian audiences.
He proposed curbing their operations by preventing them from using domestic payment channels to process transactions.
“After the real-money gaming ban, these offshore money-gaming apps (many of them scammy) are mushrooming. 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 wrote.
Many of these offshore platforms function beyond the reach of Indian regulators and often operate without adhering to consumer protection standards or anti–money laundering norms.
Kamath's remarks follow the Indian government's decision last year to tighten regulations around online gaming involving financial wagers.
Also Read: SEBI Collected 1.7 TB Of Email Data From IndusInd Bank For Investigation: SAT Order
In August 2025, the Centre shut down a number of such apps after passing the Promotion and Regulation of Online Gaming Bill, 2025. The law was introduced to protect users from the risks associated with money-based gaming while allowing other forms of online games to operate under a regulated framework.
The legislation prohibits platforms from hosting or promoting games that require players to stake money in order to take part. It also places limits on advertising related to such services and blocks financial transactions linked to them.
The government said the move was aimed at tackling gaming addiction and preventing households from slipping into financial hardship or social distress. Authorities were also wary of platforms that lured users with exaggerated claims of easy profits.
Also Read: Telangana Man Loses Rs 36 Lakh In Online Stock Trading Scam
The policy represents one of the most far-reaching regulatory actions taken in India's digital gaming industry. Before the clampdown, real-money gaming had expanded into a multi-billion-dollar market, with fantasy sports, rummy and poker platforms drawing millions of users and attracting substantial venture capital investment.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
