After gaming ban, offshore apps rise; Zerodha’s Nithin Kamath warns on easy money transfers

The ban on several real-money gaming platforms in India had brought relief to many users who were losing savings to online betting, but offshore gambling apps are now rapidly filling the gap, Zerodha founder and CEO Nithin Kamath has warned, highlighting the growing risk of money flowing out through loosely regulated platforms.

The central government had pulled the plug on many online money gaming apps in August 2025 after passing the Promotion and Regulation of Online Gaming Bill, 2025, a law aimed at protecting citizens from the dangers of real-money betting while allowing regulated online games to continue. The legislation was designed to curb gaming addiction, prevent financial losses and reduce social distress caused by unregulated betting platforms.

At the time, the government had said the move was necessary to stop predatory apps that promised quick profits but often led to heavy losses.

“Online money gaming platforms have caused widespread harm. Families have lost their savings. Young people have fallen into addiction. In some heartbreaking cases, financial distress linked to these games has even led to suicides. The Government has recognised these dangers and responded with strong legislation,” the government had said after the ban.

However, according to Kamath, the crackdown on domestic platforms has not fully solved the problem, as users are now shifting to offshore betting apps that operate outside Indian jurisdiction.

In a recent social media post, Kamath said the biggest loophole allowing these apps to grow is the ease of transferring money through digital payment systems.

“The best way to stop these offshore apps is to make money transfers difficult and ask banks to block such transactions,” he said, suggesting that tighter control over payment channels could be more effective than banning platforms alone.

Industry executives say offshore operators are aggressively targeting Indian users through social media promotions, influencer marketing and messaging apps. Advertisements for betting apps are commonly seen on Instagram, YouTube, X and Telegram, often promising quick profits through cricket betting, casino games and other forms of online gambling.

Unlike earlier, users do not need VPNs or technical tools to access these platforms, making it easier for new users to join.

Payments have also become simpler because many of these apps are linked to digital wallets and UPI-based systems. Deposits can be made through services such as PhonePe, Google Pay and Paytm, allowing money to be transferred in seconds, sometimes with amounts as low as ₹300.

Once the funds are sent, the money is typically routed to offshore accounts, making recovery difficult if users face fraud or are unable to withdraw winnings. Several users have reported delays in payouts or complete loss of funds, with little legal protection since the platforms operate outside India.

Kamath said that blocking payment routes and monitoring suspicious transfers through banks and payment gateways could significantly reduce the scale of the problem.

Experts say the growing use of offshore gaming apps shows that enforcement may now need to focus not only on banning platforms but also on controlling the financial channels that allow them to operate.