.png)
.png)
A new report by the Digital India Foundation (DIF) has shed light on the vast and persistent presence of illegal online gambling and betting in India, revealing that the industry continues to thrive despite government crackdowns. The study, authored by Dr. Arvind Gupta and the DIF research team, highlights how these illicit platforms exploit digital advertising, payment networks, and offshore jurisdictions to evade enforcement, raising serious concerns about financial fraud and money laundering.
According to the report, four major illegal gambling operators—Parimatch, Stake, 1xBet, and Batery Bet—saw a staggering 1.6 billion visits in just three months. The research also indicates that the Indian Premier League (IPL) season, which takes place between March and April, acts as a key driver for spikes in online gambling searches, suggesting that betting activity surges during this period.
One of the tactics employed by these platforms to circumvent restrictions is the use of mirror websites—alternative domains that replicate the original gambling platforms. The report notes that just three mirror websites linked to Parimatch alone accounted for an additional 266 million visits, demonstrating the resilience of these illegal operators.
Digital marketing plays a critical role in the expansion of online gambling in India. Over a three-month period, social media platforms contributed to approximately 42.8 million visits to illegal gambling websites. Additionally, organic search results accounted for around 184 million visits, as gambling websites continue to appear prominently in search rankings.
Referral traffic was another major contributor, responsible for 247.5 million visits, with many referrals coming from adult content websites, sports-related platforms, and video streaming services. Direct website visits, where users manually entered URLs or accessed bookmarked links, totaled 1.1 billion visits to illegal platforms.
Despite existing regulations prohibiting the promotion of gambling, major digital platforms such as Facebook and Google continue to display advertisements for offshore gambling operators. This loophole enables these illegal businesses to expand their reach while avoiding enforcement actions.
Illegal gambling platforms sustain themselves through a well-structured financial network that ensures seamless transactions. These platforms accept various payment methods, including UPI transfers, cryptocurrency payments, and international digital wallets such as AstroPay, allowing users to place bets while maintaining anonymity.
The report also brings attention to the increasing use of mule accounts—bank accounts utilized to funnel illicit transactions for gambling operators. According to data from the Reserve Bank of India (RBI), approximately ₹2,500 crore ($300 million) in illicit funds pass through these networks each month.
A 2024 investigation by The Ken uncovered a growing trend of "mule-as-a-service" networks, further complicating enforcement efforts by authorities. These organized networks provide services that facilitate money laundering for gambling operations, making it increasingly difficult for regulators to track and disrupt financial flows.
Despite multiple enforcement measures, including website blocking and financial transaction restrictions, the report argues that India’s efforts remain fragmented. A comparative study of international regulatory frameworks from countries such as Norway, the UK, Denmark, Belgium, and the US suggests that a multi-layered approach—combining website blocking, marketing restrictions, payment bans, and regulatory whitelisting—has been more successful in controlling illegal gambling activities.
The Digital India Foundation calls for India to implement a comprehensive enforcement strategy aimed at disrupting the operational foundations of illegal gambling. One of the key recommendations is stricter regulation of digital advertising platforms to prevent social media and search engines from promoting gambling sites.
The report also urges the government to introduce tighter financial regulations to block illicit transactions and dismantle networks of mule accounts used for laundering gambling proceeds. Additionally, the authors advocate for the implementation of a government-backed whitelist/blocklist system that would regulate online access to gambling platforms, ensuring that only licensed and legally operating websites are accessible to Indian users.
The report concludes that unless India strengthens its regulatory framework and adopts a proactive enforcement approach, the illegal gambling industry will continue to thrive, posing significant risks to financial security and consumer protection.
By fLEXI tEAM
Comments