Regulator Targets Rapid Rise of Online Gambling Platforms Amid Surge in Cross-Border Player Traffic

15 October 2026

Surging cross-border player traffic and the proliferation of unlicensed online gambling platforms have regulators worldwide scrambling to enforce new compliance measures. The trend is particularly pronounced in emerging gaming markets like India, where millions of new gamers, widespread smartphone adoption and a rapidly developing domestic industry have attracted numerous unsanctioned online gaming platforms—often from foreign jurisdictions operating in legal grey areas.

To combat this, the Indian government is preparing to implement new regulations for online gaming. According to a report in the Financial Express, the forthcoming Promotion and Regulation of Online Gaming Rules will target offshore betting and gaming platforms. The regulations will require companies to follow a formal code of practice, including age verification, content classification standards, and uniform compliance requirements.

New Rules Take Shape

The rules, when implemented, will apply to game developers, aggregators, and platform operators. However, independent Indian developers who only create games without operating them domestically will reportedly be exempt. Amid growing concerns about real-money gaming's impact on vulnerable players, the new framework will treat individual players as victims rather than offenders, focusing enforcement on the owners and operators of prohibited games.

In India, these regulatory changes come as industry reports highlight a significant shift toward offshore platforms. A Delhi-NCR survey by CUTS International, cited by the Financial Express, found offshore platforms' share of daily play surged from 3.4 percent before the 2023 ban to 42.3 percent this year. With approximately 2,500 platforms already banned in India and an estimated $2.5 billion in annual lost GST revenue from offshore betting, pressure has intensified for government action.

India isn't alone in confronting this cross-border expansion of unregulated gaming. The UK Gambling Commission has warned about increasingly aggressive tactics by illegal operators, including search result manipulation, monetized access to unlicensed sites, and targeted gambling marketing at consumers in other countries. While the UK was once a leader in online gambling regulation, the commission acknowledged it's struggling to keep pace with evolving challenges.

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Global Regulatory Challenges

As jurisdictions worldwide develop new regulatory approaches, unlicensed operators continue exploiting market gaps, using diversified revenue streams and aggressive cross-border marketing. Addressing the legal and ethical issues in this evolving market landscape, particularly during industry uncertainty, presents a growing challenge for governments. Enforcement against offshore entities remains difficult—a recent examination found that two domestic operators actually held UK licenses and were treated as a single entity by regulators.

A broader question involves the responsibility of payment processors, technology companies and social media platforms in curbing illegal gambling. Tamil Nadu's gaming regulator plans to issue notices to major tech platforms, arguing they create marketing channels that entice players to illegal gambling operations. State officials emphasized these companies should focus on supporting legal gaming activities instead.

While India's new framework may help address offshore market issues, experts caution that weak regulations could create opportunities for rogue operators to shift between jurisdictions or for domestic platforms to offer aggressive incentives that harm consumer protection while boosting state revenues.

For established platforms, these regulatory challenges are increasingly urgent. Even large international companies that adapted to shifting local markets and regulatory environments over years now face new pressures as cross-border gambling operations become more sophisticated while core regulatory approaches remain relatively unchanged.