Rigged Games, Fake Wins: How India’s Real Money Games Are Built To Exploit Players | Undercover Asia

Key Concepts

• Real Money Gaming (RMG): Games where users deposit money to enter contests and win cash rewards.
• Games of Skill vs. Games of Chance: Legal distinction determining whether a game is primarily based on skill or luck, impacting its legality under gambling laws.
• Bots: Automated software applications mimicking human players, often used to manipulate game outcomes.
• Offshore Betting Platforms: Gambling websites operating outside of India, often illegally targeting Indian users.
• Addiction & Dopamine: The role of gaming in stimulating dopamine release, leading to potential addiction and reliance on the stimulus.
• Digital Hygiene, Literacy, Fasting, and Resilience: Components of a treatment program for technology addiction.
• Mule Accounts: Bank accounts opened by unsuspecting individuals and controlled by illegal betting platforms for collecting player deposits.
• Algorithm Manipulation: The practice of altering game algorithms to favor the house or specific players.
• Data Revolution: The impact of cheap mobile data on the growth of mobile gaming in India.

India's Mobile Gaming Industry: A Darker Reality

The Rise of Mobile Gaming and Real Money Games

• India has approximately 500 million mobile game players, fueled by the data revolution initiated by Reliance Jio in 2016, which made mobile data affordable and accessible.
• The mobile gaming market is divided into video games, real money games (RMGs), and gambling. RMGs constitute 85% of the Indian gaming market, generating $2 billion in 2023.
• There are around 400 startups operating nationwide, employing aggressive marketing campaigns featuring celebrities like MS Dhoni.
• The availability of cheap data and the allure of easy money have led to a surge in RMG participation, with users often chasing quick profits to fulfill financial needs.

The Addictive Nature of RMGs

• Gaming stimulates the release of dopamine, creating a rewarding sensation that can lead to addiction.
• Individuals may become overly reliant on gaming as a source of stimulation, leading to negative consequences.
• Gaming companies employ psychological tricks, such as daily login rewards and bonus offers, to keep users hooked.
• Studies have shown that excessive gaming can cause structural changes in the brain, affecting higher-order thinking functions and impulse control.

The Dark Side: Addiction, Financial Ruin, and Suicide

• The video highlights the story of Himanshu, who lost ₹96 lakhs (approximately $115,000 USD) due to RMG addiction.
• The video mentions instances of individuals resorting to extreme measures, including stealing from family and friends, taking out loans, and even committing suicide due to financial losses from RMGs.
• The video includes a quote from a protestor: "परेशान हो रहे हैं भाई हां जी नुकसान बहुत हुआ हमारे मिलने जुलने वाले आत्महत्या भी कर ली उन्होंने" (People are troubled, yes, there has been a lot of loss. Our acquaintances have even committed suicide).

The Role of Gaming Companies and Algorithm Manipulation

• Former game developers reveal that RMG companies often manipulate game algorithms to ensure players initially win to encourage further investment, followed by a series of losses.
• The video includes a quote from a former game company employee: "मैं जब एक गेम डिज़ कंपनी में था तो वहां पर एक सेपरेट टीम थी जो पूरा का पूरा ये एनालिसिस करती थी। क्या करते हैं रियल मनी गेम्स? लाइक वो पहले मुझे जीतने देंगे और फिर मैं एक दो बार या तीन चार बार जीत गया। फिर मैं ज्यादा पैसे लगाऊंगा और फिर मैं ज्यादा रिस्क लूंगा।" (When I was in a game design company, there was a separate team that did this entire analysis. What do real money games do? Like, they will let me win first, and then after I win once or twice or three or four times, then I will bet more money and then I will take more risks).
• Bots are used to simulate real players and manipulate game outcomes, making it nearly impossible for genuine players to win consistently.
• The video includes a quote from a game developer: "25% ही रियल प्लेयर होते हैं। 75% वोट प्लेयर होते हैं। हम लोग को लगता है हम गेम खेल रहे हैं। लेकिन गेम हम लोग के साथ खेलता है। हम लोगों को पता नहीं चलता।" (Only 25% are real players. 75% are bot players. We think we are playing the game, but the game is playing with us. We don't realize it).

The Legal Landscape and Regulatory Challenges

• The Public Gambling Act of 1867, a British colonial law, is still used in many states to regulate gambling.
• The Act distinguishes between games of skill and games of chance, but the definition of "skill" is vague, leading to legal loopholes exploited by RMG companies.
• The Supreme Court's 1967 Satyaranayan judgement, which classified Rummy as a game of skill, has been used by online Rummy companies to justify their operations.
• The central government has increased taxes on online gaming to 28% and is demanding retrospective taxes, leading to legal challenges from gaming companies.
• The video includes a quote from a finance minister: "Online gaming will be tax they will be tax at 28% not only was the tax increased the company also order to pay retrospective taxes for every year of operation".
• The central government faces challenges in regulating online gaming due to India's federal governance structure, where gambling is a state subject.

The Rise of Illegal Offshore Betting Platforms

• Illegal offshore betting platforms are exploiting the regulatory gaps and targeting Indian users.
• These platforms operate from offshore havens like Dubai and the Cayman Islands to avoid Indian laws and taxes.
• The video mentions the case of Saurabh Chandrakar, the owner of the betting app Mahadev, who spent $23 million on his wedding in Dubai and was later arrested for money laundering.
• Approximately 700 offshore online gaming entities are under scrutiny by Indian authorities for operating illegally.
• The video includes a quote from Rolan Landers of the All India Gaming Federation: "One of the biggest challenges that the industry faces comes from the illegal gray markets which constitute mainly betting and gambling and because they are not permitted in India they operate from offshore locations and target users in India".
• These platforms use sophisticated networks and mule accounts to collect deposits and transfer funds offshore.

Efforts to Combat RMG Addiction

• Civil society movements are emerging to raise awareness about the dangers of RMG addiction.
• The state of Tamil Nadu has established an Online Gaming Authority (TNOGA) to regulate RMGs and has banned Rummy and Poker.
• The video includes a quote from a TNOGA representative: "Our view is that the way Rummy and Poker is played online is very different from the way it is played by us sitting across the table in a club in fact we have a study done by Anna University very detailed one which suggest that there is clear evidence to say that in many cases we are playing against bots".
• The All India Gaming Federation (AIGF) proposes that member companies seek official certification to verify that their games don't use bots.
• The National Institute of Mental Health and Neurosciences (NIMHANS) has launched a program to help individuals battle technology addiction, focusing on digital hygiene, literacy, fasting, and resilience.

The Future of RMGs in India

• The central government passed the Promotion and Regulation of Online Gaming Bill 2025 to ban real money gaming.
• The video includes a quote from Himanshu: "हम लोग को लगता है हम गेम खेल रहे हैं लेकिन गेम हम लोग के साथ खेलता है। हम लोग को पता नहीं चलता।" (We think we are playing the game, but the game is playing with us. We don't realize it).
• Even before the ban, some RMG companies were expanding overseas, indicating a potential shift in the industry.
• The video includes a quote from a Winzo representative: "We feel that games can transcend borders and boundaries quite well".
• The video includes a quote from a developer: "On 21 August 2025 India's Parliament passed a bill to ban real money gaming after years of action but will this ban be enough will people turn instead to unisteriv".

Conclusion

The video paints a concerning picture of the mobile gaming industry in India, highlighting the addictive nature of RMGs, the manipulative practices of some gaming companies, and the devastating consequences for individuals and families. While regulatory efforts are underway, the challenges are significant, particularly with the rise of illegal offshore betting platforms. The video emphasizes the need for greater awareness, responsible gaming practices, and effective treatment programs to combat RMG addiction and protect vulnerable individuals.