The Digital India Foundation’s report on the Indian gambling market highlights the rapid expansion of illegal online gambling, revealing that just four offshore platforms – Parimatch, Stake, 1xBet, and BateryBet – received 1.6 billion visits over three months.
The study examines the illegal gambling ecosystem in India, mapping its key enablers and evaluating global enforcement strategies to counter the growing black market.
With an estimated 448 million online gaming players in India, including 148 million paying users, the absence of a centralized regulatory framework has allowed illegal operators to thrive. Despite attempts by the Ministry of Electronics and IT in 2023 to establish self-regulatory bodies, regulatory efforts have stalled due to the complexities of the market. Currently, online sports betting remains illegal in India, while casino games are only permitted in Goa and Sikkim for in-person gambling.
The report also raises concerns about fraud, money laundering, and terrorism financing within the online gaming sector. A previous study from October 2024 urged stronger financial oversight, emphasizing the need for enhanced KYC practices and more effective anti-money laundering measures. Additionally, the growing use of cryptocurrencies and mixing services is making it increasingly difficult to track illicit transactions.
A significant portion of traffic to illegal sites stems from digital marketing efforts, with social media platforms accounting for 42.8 million visits and referrals through affiliate promotions and streaming platforms generating 247.5 million visits. However, direct URL entries remain the dominant source, with 1.1 billion visits, signaling the long-term success of illegal operators’ promotional strategies. Google search trends from 2021 to 2024 reveal a consistent increase in searches for unregulated gambling platforms, further highlighting the expanding reach of these markets.
To combat illegal gambling, the report recommends a shift from fragmented enforcement to a comprehensive, ecosystem-based approach. Drawing from regulatory models in the UK, US, Denmark, and Norway, it suggests a combination of marketing restrictions, website and payment blocking, and whitelisting of legal operators. The report also calls for stricter digital advertising policies, urging social media platforms to ban paid promotions for illegal gambling and enhance content moderation to flag user-generated content promoting black-market operators. Additionally, it proposes that influencers engaged in promoting illegal platforms should face immediate bans.
From a financial regulation standpoint, the study urges the Reserve Bank of India to introduce policies requiring payment systems, banks, and financial institutions to block transactions linked to illegal gambling. It emphasizes the need for digital media platforms to curb user acquisition for unauthorized gambling sites while enhancing financial safeguards to prevent illicit money flows. The findings underscore the resilience and adaptability of illegal operators, stressing the urgency for a more coordinated and stringent regulatory response.
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