A recent report by the Digital India Foundation (DIF) has exposed the alarming scale of illegal online gambling and betting in India, revealing that the industry continues to thrive despite regulatory crackdowns.
The study, authored by Dr. Arvind Gupta and the DIF research team, highlights how these platforms exploit digital advertising, payment networks, and offshore jurisdictions to evade enforcement, raising concerns about financial fraud and money laundering.
According to the report, 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, which occurs between March and April, has been a catalyst for spikes in search activity related to online gambling, indicating the seasonal growth of the sector.
The study highlights that mirror websites—alternative domains that replicate original gambling platforms—allow these operators to evade website blocks. In one instance, just three mirrors of Parimatch generated an additional 266 million visits, further proving the resilience of these illegal platforms.
The Role of Digital Advertising
One of the primary enablers of illegal gambling in India is digital marketing. Over a span of three months, social media platforms were responsible for driving approximately 42.8 million visits to illegal gambling websites. Organic search traffic played a significant role as well, generating around 184 million visits, largely due to the high-ranking visibility of gambling sites in search engine results.
Referral traffic also contributed significantly, accounting for 247.5 million visits, with many of these referrals originating from adult websites, sports-related platforms, and video streaming services. Furthermore, direct website visits, where users either bookmarked links or entered URLs manually, accounted for 1.1 billion visits to these illegal platforms.
Despite existing policies that prohibit the promotion of gambling, major digital platforms like Facebook and Google continue to display advertisements for offshore gambling operators. This loophole enables these companies to expand their reach while evading strict enforcement.
The Financial Networks Behind Illegal Gambling
Illegal gambling platforms sustain themselves through a sophisticated payment network that facilitates seamless financial transactions. These platforms accept a variety of payment methods, including UPI transactions, cryptocurrency payments, and international wallets such as AstroPay, making it easier for users to place bets anonymously.
The report also highlights the growing use of mule accounts—bank accounts that are used to funnel illicit transactions on behalf of gambling operators. According to RBI data, an estimated ₹2,500 crore ($300 million) in illicit funds flows through these networks every month.
A 2024 investigation by The Ken uncovered an emerging trend of “mule-as-a-service” networks, which further complicates enforcement efforts by authorities.
Despite repeated enforcement measures, such as website blocking and financial restrictions, the report argues that India’s enforcement remains fragmented. A comparative analysis of international best practices from Norway, the UK, Denmark, Belgium, and the US reveals that a multi-layered approach—which combines website blocking with restrictions on marketing, payment bans, and regulatory whitelisting—has proven more effective in tackling illegal gambling markets.
Recommendations for India
The Digital India Foundation urges India to adopt a comprehensive enforcement strategy that disrupts the operational pillars of illegal gambling. The first step involves enforcing stricter regulations on digital advertising platforms, ensuring that social media and search engines do not promote illegal gambling sites.
Additionally, the report calls for tightening financial regulations to block illicit transactions and dismantle networks of mule accounts used to launder gambling proceeds.
Furthermore, the authors suggest implementing 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 with proactive policy enforcement, the illegal gambling market will continue to flourish, posing serious threats to financial integrity and consumer protection.
