Illegal Gambling Thrives in India

India’s illegal gambling market is thriving, with offshore operators attracting billions of visits despite government restrictions.

A new report by the Digital India Foundation highlights the urgent need for tighter regulation to combat fraud and illicit transactions.

With 1.6 billion visits to just four major offshore platforms in three months, the scale of illegal gaming is staggering.

As authorities struggle to enforce current laws, the report recommends a more robust, ecosystem-based approach to enforcement.

Illegal Gambling in India Surges as Report Calls for Stricter Regulation

Key Points:

• India’s illegal gambling market is rapidly expanding, with 1.6 billion visits to offshore sites in three months.
• A lack of federal regulation allows black-market operators to flourish, while social media drives illegal gambling traffic.
• The report urges India to adopt global enforcement strategies, including website blocking, payment restrictions, and digital ad bans.

Illegal Gambling in India Reaches Unprecedented Levels

India’s online gambling black market is expanding at an alarming rate. A new report from the Digital India Foundation (DIF) reveals that offshore gambling sites received 1.6 billion visits in just three months, underscoring the extent of illegal gaming activity.

The report, titled “The Gambling and Betting Market in India”, highlights that unlicensed operators—such as Parimatch, Stake, 1xBet, and BateryBet—continue to dominate the Indian market. It warns that these platforms operate without oversight, exposing players to fraud, money laundering, and financial crime risks.

Why Is Illegal Gambling Booming in India?

India has an estimated 448 million online gamers, ranging from casual social players to high-stakes real-money gamblers. However, with no centralized federal framework governing online gambling, illegal betting sites have successfully filled the regulatory vacuum.

The report identifies multiple factors fueling the black-market surge, including:

• Lack of federal oversight, allowing illegal operators to target Indian players freely.
• Social media-driven traffic, with 42.8 million visits to gambling sites originating from platforms like Facebook, Instagram, and YouTube.
• Aggressive marketing tactics, which have led to a rise in direct website visits (1.1 billion hits).
• Cryptocurrency transactions, making it easier for illegal platforms to process payments anonymously.

The result? An unregulated ecosystem where players have no consumer protection, and the government loses billions in potential tax revenue.

Current Legal Framework: A Fragmented Approach

India’s gambling laws remain outdated and inconsistent across states.

The Public Gambling Act, 1867, prohibits operating gambling houses and possessing betting devices but carves out exceptions for “games of skill.”

State-Level Exceptions:

• Goa and Sikkim allow land-based casinos, but online sports betting remains illegal nationwide.
• No federal regulatory body oversees online gambling, leaving enforcement to individual states.

Despite a 2023 push for self-regulatory bodies, the lack of a unified approach has allowed illegal operators to thrive.

How Players Are Accessing Illegal Sites

The report identifies multiple pathways through which Indian players are accessing offshore betting sites:

• Social Media Ads & Promotions – 42.8 million visits came through platforms like Instagram, Facebook, and Telegram.
• Streaming & Affiliate Marketing – Gambling promotions on YouTube, Twitch, and affiliate networks drove 247.5 million visits.
• Direct Website Access – The majority of players (1.1 billion visits) navigated to sites directly, showing past marketing success.
• Google Trends data from 2021 to 2024 shows a surge in searches for illegal betting platforms like Dafabet, 1xBet, Parimatch, 4rabet, and Khelo24Bet.

Report Recommendations: A Shift in Strategy

The Digital India Foundation has called for a more comprehensive enforcement approach, recommending:

• Stronger Financial Oversight: The Reserve Bank of India (RBI) should enforce strict anti-money laundering (AML) regulations, blocking illicit gambling transactions.
• Digital Media Crackdown: Social media platforms should ban paid gambling ads and improve content moderation to remove illegal promotions.
• Website Blocking & Payment Restrictions: India should adopt website blacklisting and payment blocking measures, similar to enforcement strategies in the UK, Denmark, and Norway.
• Strict Penalties for Influencers: The report suggests permanent bans on influencers and content creators promoting unlicensed gambling sites.
• Regulation of Cryptocurrency Payments: Authorities should restrict cryptocurrency-based betting, which enables untraceable transactions and financial crime.

The Road Ahead for India’s Gambling Industry

India’s lack of regulation has allowed offshore betting platforms to thrive, putting players at risk and draining government revenue.

To curb illegal gambling, a unified regulatory framework is essential.

A properly regulated market could generate billions in tax revenue while ensuring player safety.

Without immediate intervention, India risks losing control over its growing gambling ecosystem.

With lessons from international jurisdictions, India must act now to enforce stricter controls and protect its digital economy.