Offshore betting firms with backend ops in India not covered by online gaming law
Several offshore betting and gambling companies—many of them operating legally and illegally in other countries but not in India—have established backend units in India, particularly in Bengaluru and Hyderabad.
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The newly enacted Promotion and Regulation of Online Gaming Act, 2025, which prohibits all real money games of skill and chance in India, will not cover offshore betting and gambling companies that do not directly provide services to Indian users. Legal experts confirm that backend operations of such companies, even if located in India, will remain outside the ambit of the law.
The legislation, passed last week, aims to curb the growing influence of online money gaming within the country by banning both skill- and chance-based real money games. It also introduces strict penalties for violators, including fines and imprisonment. However, its applicability has been a subject of debate in the gaming and technology ecosystem, particularly concerning offshore operators with a footprint in India.
Several offshore betting and gambling companies—many of them operating legally and illegally in other countries but not in India—have established backend units in India, particularly in Bengaluru and Hyderabad, the country’s largest technology hubs. These offices typically handle IT support, software development, customer service, payment processing, and marketing functions.
Since these operations do not involve the provision of gambling services to Indian users, they are not classified as falling under the scope of the new Act. A senior lawyer familiar with the matter explained to Storyboard18, "The backend operations of such illegal betting and gambling firms do not fall under the ambit of the newly passed online gaming law. The moment they start providing services in India, however, the employees and the management can be booked under the new law for abetting or facilitating prohibited activities.”
This exemption is significant, as it allows India to remain a base for backend technology support and innovation while still regulating the consumer-facing side of the online money gaming industry.
However, surrogate of illegal betting and gambling firms like 1xBet, DafaBet, Parimatch, RajaBet, Fairplay, among others remain under scrutiny and are banned. These firms are already under the scanner of Directorate of Enforcement and are being investigated for money laundering and illegal operations in the country.
The regulatory clarity has also coincided with a series of international companies deepening their presence in India for non-consumer-facing operations. One of the most prominent recent examples is Skillz, the U.S.-based mobile skill gaming platform.
Skillz, an offshore betting and gambling firm registered in US has established Bengaluru as its second corporate headquarters, marking a strategic decision to expand global operations from India. The office will function as a hub for product development, core engineering, and advanced data analysis. By 2026, the company expects nearly half of its global product, engineering, and analytics teams to be based in Bengaluru.
The move complements Skillz’s USD 75-million Developer Accelerator programme, designed to support emerging mobile game developers and studios. India, with its vast pool of tech talent and thriving developer community, has been identified as a key market for this initiative.
Skillz, a public listed entity in the US reported strong growth in its latest financial results, with an 8% year-on-year revenue increase in the June 2025 quarter, alongside an 18% quarter-on-quarter and 20% year-on-year rise in paying monthly active users.
Addressing questions on India’s new gaming law, a Skillz spokesperson clarified that the company is committed to compliance and has no plans to launch real money gaming products in India.
“Skillz Inc is a U.S. publicly traded company focused on developing and operating skill-based gaming platforms, primarily for the U.S. market. As a publicly listed entity, Skillz holds itself to high standards of compliance worldwide,” the spokesperson said.
The spokesperson said, “Our newly opened Bengaluru office functions as a global innovation and research & development hub, supporting the Company’s U.S. and international operations. In light of new Indian legislation, the Company will neither offer nor promote online money-gaming products in India, and will ensure compliance with all applicable Indian laws and regulations.”
The stance taken by India’s new law reflects a balancing act: cracking down on domestic RMG operators and illegal offshore betting and gambling firms providing services in India while avoiding restrictions that might discourage international firms from investing in backend operations and research centers.
Industry watchers say the law draws a clear line between operations targeting Indian consumers and global support work carried out from India. As long as companies do not extend their gaming products to Indian players, their backend offices will not attract regulatory scrutiny.
For now, the Promotion and Regulation of Online Gaming Act, 2025 creates certainty for global firms like Skillz that India remains an attractive hub for technology and innovation, even as the country tightens restrictions on consumer-facing online real money gaming.
