From boom to the prohibition, ascent and falling the applications of Paris of India

Kartik Srinivas (amended name) always sets off on the mention of online bets. What started as a thrill to win a small gain that made a spiral in a five -year dependence which cost its savings at 26, its peace of mind and almost its future.

Between 2019 and 2024, Srinivas lost more than 1.5 million rupees ($ 17,000; £ 13,000). Money included three years of income, as well as savings and loans to friends and family.

“I tried everything – applications, local bookmakers, international platforms. I was addicted,” he said.

By 2024, it was deep with losses.

The story of Srinivas reflects the darker side of the actual game industry in the past in full swing (RMG) – where players use online platforms to bet money on poker, fantastic sports and other games.

A few days ago, India adopted a bill to ban these games, arguing that they had become increasingly addictive and led to financial distress among people.

The new law makes the offer or makes it possible to allow such liable services, with a prison sentence of up to three years and a fine of up to 10 m of rupees. Promoting them carry two -year sanctions and 5m rupees, although users are treated as victims, not offenders.

The government defended this decision as a way to protect consumers from the game.

Federal Minister of IT, Ashwini Vahnaw, said that online gambling had 450 million Indians, causing losses of more than 200 billion rupees and triggering “depression and suicides” among many. The source of these data, which was presented in Parliament last week, is not clear.

But many in the industry have called the prohibition an instinctive decision, which, according to them, has paralyzed a flourishing sector and would hurt those he tries to protect.

Before the ban, India had around 400 RMG startups which generated nearly $ 2.3 billion in annual taxes and supported more than 200,000 jobs. One of them, Dream11, even sponsored the Cricket team of India.

This is the first federal law to ban online Paris platforms, although the sector has long been examined, states like Odisha, Assam, Andhra Pradesh and Telangana already applying their own prohibitions. In 2023, the federal government stuck a 28% tax on online game bets.

However, the industry has prospered, attracting major global investments and mentions of celebrities.

Mumbai -based game lawyer Jay Sayta told the BBC that the ban was a “massive setback” for investors who had pumped millions of dollars in these startups.

He said that although there is a need for regulation in the industry, the law had been inherently introduced and without consultation.

Among the hardest, Dream11 – worth $ 8 billion and once the main sponsor of the India cricket team – and the value of 2.5 billion dollars My11Circle, which is a partner of the Indian Premier League, the richest cricket tournament in the world. The two closed real money game operations.

One of the main statements in the industry is that the law does not distinguish between “skills games” – which involve decision -making, talent and knowledge – and “games of chance”, which are based solely on luck. He prohibited both.

In the past, several Indian courts have judged that online gambling is in the skills category and cannot be treated as games of chance.

In Karnataka and Tamil Nadu, the courts have even struck the prohibitions at the level of the state on the game platforms on these reasons. And in 2022, the Supreme Court of India confirmed a decision of the High Court of Punjab and Haryana which classified fantastic sports as “skills games”.

Smrita Singh Chandra, who managed to manage political communications at Dream11, wrote on LinkedIn that the prohibition had been introduced “without transition, nuance or consider economic realities”.

Mr. Sayta noted that companies had invested and built their commercial models around these court decisions.

Indian games on games argue that the closure of “regulated and responsible Indian platforms” will lead millions of players in the hands of illegal networks, offshore game websites and night operators that work without any guarantee and consumer protection.

In many Indian cities, bets are already taking place through local bookmakers that operate unattended, which is often more exploiting than online platforms.

Bets are generally broadcast via WhatsApp or Telegram groups, where links are shared with hundreds of users at the same time. Gaming applications abroad also remain at hand, as many use VPNs to bypass restrictions.

But the government argues that even legitimate real money game platforms work on “opaque algorithms” which makes it almost impossible for users to win – a point that some echo experts.

Vishal Gondal, co-founder of the NCORE Games video games company, told the BBC that in competitions like online Rummy (a game of popular card), users often play without knowing it against bots.

Mr. Gondal added that the algorithm of these robots is designed to promote the game platform, ensuring that it almost always appears as the final winner.

“These games mainly represent the game,” said Gondal. “Calling them skill games is like the brand of alcohol as well as fermented juice.”

But others like Mr. Srinivas are shocked by the suddenness of the movement.

Even if he no longer plays, he says that awareness of the damage of the game would have been much more effective than imposing a general ban.

“At least with these applications, there was a certain responsibility-without them, things could get worse,” he said.

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