As the Indian Premier League (IPL) kicks off, the rise of this popular cricket league has also brought to light a shadowy aspect—illegal online gambling.
The illegal gambling market in India is not only thriving but also experiencing explosive growth, estimated to be worth up to $100 billion annually, with a growth rate of 30%.
Spike in Illegal Betting During IPL Season:
Arvind Gupta, head and co-founder of the Digital India Foundation, provided a clear overview in an interview with CNBC-TV18. Gupta explained that the scale of illegal operations is about 20 times that of the regulated gambling industry in India. He noted, "Despite strict warnings and thorough bans issued by the government, these clandestine networks cleverly use a range of strategies to circumvent the law, including deploying mirror sites, proxy advertising, and alternative payment mechanisms to sustain their operations."
Technological advancements that promote global connectivity and marketing are also used to support these illegal gambling networks. Gupta highlighted the role of major tech companies and social media platforms, which are used to promote and expand these illegal activities. He commented, "Digital marketing strategies are widely used to attract and entice users to participate in these illegal gambling schemes."
The challenges of monitoring and tracking financial transactions related to these illegal activities are immense. Gupta pointed out, "The use of cryptocurrencies and mule accounts has made traditional tracking methods almost obsolete, allowing funds to flow across borders with almost no traceability." He advocated for strengthened international cooperation, emphasizing that global action is necessary to dismantle these complex networks.
Ongoing Challenges and Ineffective Policies:
Research conducted by the Digital India Foundation vividly depicts the resilience and adaptability of illegal gambling activities, especially during the IPL season. Well-known platforms such as Parimatch, Stake, 1xBet, and Batery Bet have been identified as major players, attracting billions of visits in total. The study shows that even the mirror versions of these sites can achieve hundreds of millions of visits, highlighting the extensive influence and penetration of these platforms.
Digital advertising plays a significant role in sustaining these illegal operations. In just three months, illegal gambling sites have accumulated significant traffic from social media, organic searches, and direct visits, demonstrating the effectiveness of their promotional strategies. Moreover, the financial networks supporting these platforms utilize a range of payment methods from cryptocurrencies to international e-wallets, making anonymous betting easier and more convenient.
The report from the Digital India Foundation calls for comprehensive reform of India's law enforcement strategies. Drawing on successful international practices, the report suggests combining strict digital advertising regulations, enhanced financial controls, and a robust whitelist/blacklist system to effectively regulate access to gambling platforms.
