The regulatory framework introduced by PROGA reshaped not only domestic operations but also user behaviour beyond regulated channels. Restrictions on real-money gaming prompted many platforms to pivot toward alternative formats such as casual games, esports competitions, and entertainment-driven experiences without monetary stakes.
Tapasya Shukla, Founder and Managing Director of Zutsu, framed the shift as part of a broader transition. “As capital shifts from real-money gaming to publisher-backed esports ecosystems, and with India investing ₹15,000 crore ($1.63 billion) in animation, visual effects, gaming, comics – extended reality (AVGC-XR) alongside global titles like BGMI and Honor of Kings scaling locally, we’re entering a phase where gaming in India becomes a structured, monetisable entertainment economy,” she said.
At the same time, offshore platforms gained visibility. A survey conducted by CUTS International found that 83 percent of players in Tamil Nadu either continued or started using offshore betting sites after the ban, a significant increase compared to earlier levels. Prior to the restrictions, 67.8 percent of respondents had already engaged with such platforms alongside domestic options.
Rakesh Maheshwari, former Senior Director and GC Coordinator at MeitY, pointed to limitations in enforcement. “Right now, efforts like taxation and enforcement exist, but they aren’t enough. New apps keep emerging, making control difficult.”
He also addressed the broader regulatory approach, stating, “Ideally, the government should have taken a more structured approach in the bill, especially to address offshore gambling sites.” Expanding on this, he added, “The nature of the internet makes outright bans less effective, as offshore platforms operate beyond jurisdiction and are difficult to track or regulate.”
Reflecting on policy direction, Maheshwari said, “Rather than opting for an outright ban, a well-designed regulatory framework might have been a more practical approach.”
Despite the disruption, parts of the industry are repositioning. Companies are redirecting focus toward free-to-play models, esports ecosystems, and content-driven experiences. Jain described the transition as complex, noting, “PROGA has been something of a double-edged sword. While it tightened the rules, it also pushed companies toward clearer and potentially safer growth paths.”
He added, “With centralised governance and a strong nudge toward esports and social gaming, the industry is now naturally moving toward free-to-play models, ad-led revenues, and community-focused experiences.”
Further reinforcing this direction, Chandrima Mitra, Partner at DSK Legal, highlighted the growing role of competitive gaming, stating that esports continues to expand as distinctions between formats become clearer. “India has participated in esports global championships like the esports world cup.”
Jain concluded, “Esports is no longer a fallback option. It is emerging as a full-fledged media-sport powerhouse, driven by sponsorships, merchandise, and creator-led content.”
India’s gaming sector now operates under a redefined structure, with engagement and revenue stabilising at lower levels while new formats and offshore activity reshape the broader landscape.
Source:
India’s RMG ban triggers 11% user drop, data reveals, sigma.world, 18 March 2026
