Online betting apps snooping on Indians? Zerodha’s Nithin Kamath raises alarm

The ban on real money gaming was a huge relief for many Indians who were losing their life savings, big amounts or even small earnings to betting. However, it seems the relief of banning such apps is short-lived and has been replaced by offshore money-gaming betting apps which are mushrooming in large numbers. Nithin Kamath, founder and CEO of Zerodha, pointed out the menace of offshore gaming apps in his comment on X. Kamath writes that the best way to stop such offshore apps is to make money transfer difficult and urge banks to block them.

Kamath writes in a social media post on X (formerly Twitter) that “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.”

In his tweet, Kamath has attached an Economic Times Tech graphic, which tells how offshore money-gaming apps are manipulating rules to run their show and transferring people's money to offshore betting platforms.




The ET graphic explains the problem step by step.

Anatomy of the trap

1. Ads and influencer promotions

The trap starts with promotions and advertisements that appear on Instagram, YouTube, X and Telegram. These ads and promotions attract users to off-shore money gaming apps.

2. No complex tech or VPNs

Users can easily access these apps through One-time Password (OTP) verification and a quick wallet top-up on sites such as Parimatch, 1Xbet and Stake.

3. Integrated with UPI

Users deposit their money on apps through PhonePe, Google Pay and Paytm-like platforms. Such deposits are in the form of top-ups which are as easy as a mobile recharge.

4. Low entry amount

The apps attract a large number of users as the entry level amount is Rs 300, which many of them can easily afford. With that amount, they can bet on cricket matches, casino games and other betting games.

5. Money routing

The bigger problem starts when money is pooled and routed onward to offshore betting platforms.

6. Withdrawal issues

Users are in for a shock when they try to withdraw the winning amounts or gains.

Kamath recommends implementing some tough measures to curb the problem. But in reality, it may not just be about a few government orders. For instance, when it came to money-gaming apps in India, it required a government legislation to ban the apps.

Why did government ban gaming apps in India?

The central government pulled the plug on gaming apps in August 2025, when it passed the Promotion and Regulation of Online Gaming Bill, 2025. The purpose of passing the bill was to shield citizens from the menace of online money games while promoting and regulating other kinds of online games.

The legislation was designed to curb gaming addiction, saving people from financial ruin and social distress.

The government was concerned about predatory gaming platforms that thrived on misleading promises of quick wealth.

After banning such apps, the government had said: "Online money gaming platforms have caused widespread harm. Families have lost their savings. Young people have fallen into addiction. In some heartbreaking cases, financial distress linked to these games has even led to suicides. The Government has recognised these dangers and responded with strong legislation."

Let's see what the government do this time around.