The Digital India Foundation (DIF) recently released a report revealing the astonishing scale of illegal online gambling and betting in India, indicating that despite strict regulatory crackdowns, the industry continues to thrive.
The report describes how these platforms utilize digital advertising, payment networks, and offshore jurisdictions to evade law enforcement, raising concerns about financial fraud and money laundering.
The report states that the four major illegal platforms, Parimatch, Stake, 1xBet, and Batery Bet, recorded 1.6 billion visits in just three months. The Indian Premier League (IPL) season, held from March to April, spurred a surge in search activity related to online gambling, indicating the industry's seasonal growth.
The study highlights that mirror sites (alternative domain names that replicate the original gambling platforms) allow these operators to evade website blocking. For instance, three mirror sites of Parimatch generated an additional 266 million visits, further proving the resilience of these illegal platforms.
The Role of Digital Advertising
Digital marketing is one of the main drivers of illegal gambling in India. Over three months, social media platforms brought approximately 42.8 million visits to illegal gambling websites. Organic search traffic also played a significant role, generating about 184 million visits, mainly due to the high visibility of gambling websites in search engine results.
Referral traffic also contributed a significant volume, accounting for 247.5 million visits, many of which came from adult websites, sports-related platforms, and video streaming services. Additionally, direct website visits (users adding links to bookmarks or manually entering URLs) accounted for 1.1 billion visits to these illegal platforms.
Despite current policies prohibiting the promotion of gambling, major digital platforms like Facebook and Google continue to display ads for offshore gambling operators. This loophole allows these companies to expand their influence while evading strict enforcement.
The Financial Network Behind Illegal Gambling
Illegal gambling platforms maintain operations through complex payment networks that facilitate seamless financial transactions. These platforms accept various payment methods, including UPI transactions, cryptocurrency payments, and international wallets like AstroPay, making it easier for users to bet anonymously.
The report also highlights the increasing use of mule accounts, which are bank accounts used for illegal transactions by gambling operators. According to data from the Reserve Bank of India, an estimated 25 billion rupees (approximately 300 million USD) of illegal funds flow through these networks each month.
A 2024 survey by The Ken identified an emerging trend of "Mules as a Service" networks, further complicating the enforcement efforts of authorities.
Despite repeated enforcement measures like website blocking and financial restrictions, the report believes that India's enforcement remains fragmented. A comparative analysis with international best practices from Norway, the UK, Denmark, Belgium, and the USA found that a multi-layered approach (combining website blocking with marketing restrictions, payment bans, and regulatory whitelists) has proven more effective in combating illegal gambling markets.
Recommendations for India
The Digital India Foundation urges India to adopt a comprehensive enforcement strategy to break the operational pillars of illegal gambling. The first step is to impose stricter regulations on digital advertising platforms, ensuring that social media and search engines do not promote illegal gambling sites.
Furthermore, the report calls for enhanced financial regulation to block illegal transactions and dismantle networks of mule accounts used for laundering gambling proceeds.
Additionally, the authors suggest implementing a government-supported whitelist/blacklist system to regulate online access to gambling platforms, ensuring that Indian users can only access licensed and legally operated sites.
The report concludes that unless India strengthens its regulatory framework through proactive policy enforcement, the illegal gambling market will continue to flourish, posing serious threats to financial integrity and consumer protection.
