India Retains Lead In iGaming Market Despite RMG Ban

India’s online gaming sector continues to expand even after regulatory intervention linked to the Promotion and Regulation of Online Gaming Act, 2025 (PROGA). Industry observers note that the legislation introduced stricter compliance requirements, yet demand for online gaming services has remained strong. Market momentum has placed India at the top of the global iGaming value rankings, drawing renewed attention from international investors.

Japneet Singh Sethi, a global advisor focused on the iGaming industry, shared perspectives on how regulation, investment patterns and technological change influence the sector. His assessment highlights both resilience within India’s domestic market and ongoing structural challenges.

The PROGA framework altered how operators acquire customers and manage compliance obligations. Sethi considers the disruption a transitional phase rather than a structural setback. Demand for online gaming services has continued despite tighter controls, while unregulated channels have shown persistent activity.

Sethi stated, “The future is not just about building an iGaming brand but also owning the ecosystem behind the brand. Multiple businesses have already pivoted to other verticals that will help them acquire user data. Once the country has more favourable laws, it will be easier for iGaming operators to scale overnight.”

Industry participants have begun exploring alternative operational models, including adjacent digital services that allow them to maintain customer engagement and data continuity. Analysts suggest such approaches could position operators for rapid expansion if regulatory conditions shift.

One unresolved issue concerns how authorities will define social gaming and esports. This lack of clarity has created uncertainty for operators evaluating new product categories. Sethi pointed to social casino and sponsored-prize betting formats as potential avenues that businesses may consider while regulatory interpretations evolve.

He explained, “Businesses could also explore social casino and social betting with sponsored prizes as an angle to social gaming. Businesses are for profit, and it is necessary to allow for some leeway so that the investors are not discouraged completely. India is a big market, and the potential is huge; the current situation is an opportunity. Someone needs to get creative.”

Technological development remains another central theme. Artificial intelligence and data analytics increasingly shape operational decisions, marketing strategies and fraud detection. According to Sethi, AI adoption has lowered certain operational costs while improving player targeting and risk monitoring.

He observed, “Every unique user is mapped right from the moment of registration till the last deposit. It’s done to provide the best experience and recommend games and promos based on the user’s playing behaviour and activity. Any fraudulent activity can be singled out based on years of data and a dedicated risk & fraud analysis team.”

These developments indicate that technology investment continues even as regulatory frameworks evolve.

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Brazil attracted substantial investor attention following its regulatory changes, with expectations that it could rival India’s market scale. Sethi indicated that early enthusiasm has moderated as comparative market data became clearer.

He noted, “Brazil was a talk-of-the-town for a while when it was regulated, and everybody believed that it would be the biggest market, but eventually India emerged as a bigger market hand-down. Investors are wary of the Brazilian market now, while India continues to be the number one preference.”

At the same time, Sethi argues that domestic operators should strengthen their international presence to avoid losing ground to global competitors. He encourages greater collaboration with established regulatory jurisdictions and more international industry engagement within India.

Sethi expressed, “We need to realise that we have the biggest market at hand and that we need to use the power of this market to represent ourselves globally. It excites me when I think about how we could set precedents for the world out there and come up with new models of regulation for the industry.”

Looking ahead, the advisor considers India one of the most commercially attractive iGaming environments, while cautioning that broad regulatory restrictions can introduce uncertainty for investors. He added, “India is a very lucrative market, and operational risks like these are the last thing any business would want.”

Market observers continue to monitor how regulatory clarity, technological adoption and investment flows shape India’s position within the global online gaming sector.

Source:

RMG ban fails to shake India’s iGaming market growth: Expert, sigma.world, February 18, 2026