'Offshore Money-Gaming Apps Mushrooming': Zerodha's Nithin Kamath Warns After Centre's Crackdown on Betting Apps

New Delhi: Weeks after the central government blocked at least 242 illegal betting and gambling websites, Zerodha founder and CEO Nithin Kamath has warned that offshore betting and gaming apps are on the rise, which carries with it the risk of unmonitored fund flows across borders and frauds.

The tech entrepreneur suggested that their operations might be curbed by preventing them from using UPI or other domestic payment options.

“After the real-money gaming ban, these offshore money-gaming apps (many of them scammy) are mushrooming. I think the best way to stop them is to make money transfers difficult by ensuring these offshore apps cannot use UPI, and that banks actively block such accounts,” he wrote in a post on X.

Such platforms often function beyond the reach of regulators and does not follow proper consumer protection guidelines, reports indicate.

The apps were banned under the Online Gaming Act, which came into force in October 2025. The crackdown in January is in line with the government’s commitment to protecting users, especially the youth. It is also aimed at curbing financial harm caused by illegal online betting and gambling platforms.

The Promotion and Regulation of Online Gaming Act seeks to promote e-sports and social online games while banning harmful money-based gaming, along with their promotion and related financial transactions.

While the government has noted that players will not be penalised, action will be taken against service providers, advertisers, promoters and those financing such platforms.

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