Illegal operators in India reached 1.6 billion visits in three months.

Shadow Market Volume

A study by Digital India Foundation has revealed a rapid rise in illegal gambling in India. According to the report:

  • In three months, websites of four illegal operators (Parimatch, Stake, 1xBet, BateryBet) recorded 1.6 billion visits.
  • Total number of online players in the country448 million people, covering all types of games.
  • The main source of traffic – direct URL input (1.1 billion visits).
  • 42.8 million visits came from social media, while another 247.5 million were from affiliates and advertising integrations on streaming platforms.
  • Search queries for illegal sites (Dafabet, 1xBet, Parimatch, 4rabet, Khelo24Bet) grew exponentially from 2021 to 2024.
  • A significant increase in cryptocurrency use and mixers was recorded to hide transactions and bypass financial controls.

Current Gambling Regulations in India

Currently, online sports betting is banned in India. Legal access to gambling is available only in two states – Goa and Sikkim, where slot machines and table games in offline casinos are permitted.

Law Year Key Provisions
Public Gambling Act 1867 Prohibits the organization and visit of gambling houses, as well as the possession of gaming devices (except for skill-based games).
Prize Competition Act 1955 Restricts gambling with cash prizes.

An attempt to create a federal regulatory system was made in 2023, but due to the scale of the task, the project was never implemented.

Ways to Access Illegal Sites

  • Direct URL input – 1.1 billion visits.
  • Social media – 42.8 million visits.
  • Affiliates, streaming platforms, and advertising integrations – 247.5 million visits.

Traffic growth indicates the effectiveness of marketing strategies used by illegal operators. They actively utilize social media, streaming platforms, and affiliate programs to attract users.

Proposals to Combat Illegal Gambling

Digital India Foundation suggests shifting from fragmented efforts to a systemic approach, which includes:

  1. Strict control over social media: blocking content and influencers promoting illegal platforms.
  2. Adopting international practices from the UK, USA, Denmark, and Norway (advertising restrictions, site and payment blocking, whitelists for licensed operators).
  3. Financial control:
    • Introducing mechanisms to block transactions linked to illegal operators.
    • Strengthening KYC procedures (customer identification).
  4. Regulation of digital platforms:
    • Ban on direct advertising of illegal operators.
    • Enhanced content moderation.
    • Automatic removal of posts related to illegal gambling.

Conclusion

The growth of the shadow gambling market in India requires urgent action. Implementing a comprehensive approach considering international experience will help reduce traffic to illegal sites, protect users, and strengthen financial controls.