Online gambling ban hits India’s gaming and sports sectors, with players turning to the black market

India’s sweeping ban on online gambling has sent ripples across the gaming, advertising, and sports industries, as users and companies scramble to adapt to the new reality, with many players turning to the black market.

The legislation, passed last month, outlaws gambling on fantasy sports and online card games. Offenders could face prison terms of up to five years. Officials have cited rising concerns over addiction, fraud, and alleged links to terrorism financing as reasons behind the move.

Government data suggests the industry had been extracting nearly US$2.3 billion annually from an estimated 450 million Indian users.

Fantasy sports giant Dream11, with 260 million users, has halted cash-based games and shifted to offering prizes such as electronics and vehicles. The company also ended its US$43 million jersey sponsorship deal with the Board of Control for Cricket in India (BCCI).

Despite the crackdown, reports indicate that many users are turning to offshore gambling platforms, often using VPNs and foreign payment systems to bypass restrictions. “It’s a habit,” said Adarsh Sharma, a fantasy player from Mumbai, in a report from local media Mathrubhumi. “People will continue to find other ways.”

"A habit once formed cannot be broken easily,” said Adarsh Sharma, an advertising professional and regular fantasy sports player, in the same article. “It is an addiction, and people will find ways to gamble.”

Analysts warn the ban could have long-term repercussions on India’s sporting economy, especially the Indian Premier League (IPL). With fantasy platforms scaling back ad spending, experts say the move could dent the future valuation of IPL media rights, set for renewal in 2027.