An Indian gambling market report discovered illegal online gambling sites are growing and asks the country's government to enforce stricter regulations.
The report, published by Digital India Foundation, studied four leading offshore brands—Primatch, Stake, 1xBet, and BateryBet —and found that in only three months, their platforms received 1.6 billion visits from Indian customers.
Of these, 1.1 billion came from players entering URLs directly into the search bar. Referrals from adults, affiliates, or promotions on streaming platforms stood for 247.5 million, while another 42.8 million came from social media platforms. Furthermore, according to the report, Google trends between Feb. 2021 and Dec. 2024 showed an “exponential rise” in searches for illegal sites.
The estimated number of Indian players engaging in online gaming is 448 million. This includes users across the spectrum: consoles, social games, and real-money gambling. According to the report, the instances of most significant concern are ones involving financial transactions or transactions that have a monetary benefit.
Already in Oct. 2024, the Digital India Foundation warned against instances of fraud, money laundering, and terrorism funding the Indian online gaming industry.
According to the study, “the vast scale and resilience of these markets underscore that the illegal gambling and betting ecosystem in India operates through a sophisticated network of mechanisms that ensure its reach and functionality.”
The foundation now asked for “enhanced oversight, stronger KYC practices, and improved systems by financial institutions” to restrict the illegal online gambling market.
148 million Indians gamble online
India has a history of restricting the gambling industry. In 1867, the government passed the Public Gambling Act, prohibiting the operation of gambling houses. It also banned visiting gambling houses and possessing gambling devices.
In 1955, the Prize Competition Act attempted to limit gambling that offered and awarded prizes.
2023 saw movement towards a self-regulatory body to oversee the gambling industry, but the idea never came to fruition. The legal gambling market now consists of table games and slots in two states, Goa and Sikkim, and in-person casinos only. Online sports betting remains illegal.
A Nov. 2023 report Lumikai, a venture capital firm published, estimated 10% of smartphone users in India, or approximately 148 million people, engage in online games that include financial transactions.
Brazil penalizes illegal gambling
Among nations cracking down on illegal gambling, a Brazilian lawmaker recently proposed a bill that would make it illegal to promote unauthorized gambling ads in that country.
This is a proposed amendment to the Brazil Penal Code from 1940. The penalty would be a fine and one to four years in prison. If illegal gambling ads target children or other vulnerable individuals, the sentence could even be extended to eight years in prison.
