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Indian Authorities Push for Big Tech’s Support in Fighting Illegal Gambling

Vishakha Srivastava by Vishakha Srivastava
18 March 2025
in Games
Indian Authorities Push for Big Tech’s Support in Fighting Illegal Gambling
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The Digital India Foundation has released a report revealing that just four offshore gambling sites amassed an astonishing 1.6 billion visits in three months. With an estimated 448 million players engaged in online gaming across various formats, the need for stricter enforcement has never been more critical.

The report highlights how illegal gambling operators are thriving, examines the key factors enabling their growth, and outlines strategies to combat the expanding black market. It also raises serious concerns about fraud, money laundering, and terrorism financing, calling for tighter regulations, stronger KYC processes, and enhanced anti-money laundering measures.

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Indian authorities are intensifying efforts to tackle illegal online gambling, urging tech giants like Google and Meta to take stronger action against unregulated betting operations. With the industry growing at a rapid pace, officials stress the need for collaboration between government bodies and digital companies to prevent fraudulent gambling services from targeting users. These unauthorized operators often lack transparency, putting players at risk of financial fraud and data misuse.

Amid these concerns, reputable resources such as BonusBandits play a key role in ensuring players have access to safe, trustworthy and above all, legally-operating online casinos. Their team of experts carefully examines gambling operators, verifying their legitimacy and fairness before recommending them. As India tightens regulations, such scrutiny becomes essential in promoting a more secure and trustworthy gambling environment.

Licensed Landscape

Despite strict regulations, India’s gambling market still operates under outdated laws, primarily the Public Gambling Act of 1867, which bans gambling houses and the possession of gambling devices, except for games of skill. Additional restrictions came with the Prize Competition Act of 1955, aimed at limiting gambling tied to prize-based competitions.

In 2023, the Ministry of Electronics and IT proposed self-regulatory bodies to oversee gambling, but no federal framework has been successfully implemented due to the complexities of India’s diverse gaming landscape.

Meanwhile, real-money gaming continues to thrive. A 2024 report by venture capital firm Lumikai found that around 10% of Indian smartphone users—roughly 148 million people—pay to play online games. The study predicts that India’s real-money gaming market could generate $3.6 billion in revenue by 2029, showing rising demand despite the lack of comprehensive regulation.

Rise Of Off-Shore Gambling

The country’s unclear regulatory environment has led to many unlicensed platforms taking full advantage of digital advancements and legal loopholes to expand their reach. The Digital India Foundation (DIF) report points to major illegal operators like Stake, 1xBet, and Pari-Match, which have bypassed Indian regulations using modern payment methods, cryptocurrencies, and aggressive social media marketing. These sites, often registered in countries with minimal oversight, funnel money through complex networks before converting it into cryptocurrency, making it nearly impossible to trace.

One of the most alarming issues is the use of Indian mule accounts to process illegal transactions. According to data from the Reserve Bank of India (RBI), these accounts handle over $300 million in illicit funds every month, yet law enforcement only manages to recover about 10% of it. Many of these mule accounts belong to individuals tricked through job offers or financial incentives into handing over their bank details to criminal syndicates. Once the money moves through, the accounts are either shut down or repurposed for further illegal activity.

Despite India’s strict gambling laws, millions still access these illegal sites. VPNs, social media ads, and even sports sponsorships help offshore operators reach Indian players, while alternative payment methods like e-wallets and crypto transactions make it easy to deposit and withdraw money. Without clear regulations to block these platforms effectively, they continue to grow, luring players with flashy bonuses, cashback deals, and endless betting options—all while staying one step ahead of the law.

Turning Point 

The Digital India Foundation is pushing for a major shift in how India tackles illegal gambling. Right now, enforcement is scattered, making it easy for offshore gambling sites to operate. Instead of just going after individual websites, the report suggests targeting the entire ecosystem that supports illegal gambling, including advertising, payment processing, and social media promotions. Looking at successful strategies in countries like the UK, US, Denmark, and Norway, the report found that a combination of website blocking, payment restrictions, ad limitations, and whitelisting approved sites is the most effective approach.

To curb illegal gambling, the report recommends stricter ad regulations, urging social media platforms to ban paid promotions and remove user-generated content linked to these sites. It also suggests immediate bans on influencers who promote illegal gambling. Additionally, the Reserve Bank of India (RBI) should introduce policies requiring banks and payment platforms to block transactions tied to illegal gambling. By addressing the root causes rather than just individual sites, this strategy aims to make it much harder for illegal gambling to thrive in India.

*The opinions expressed in this article are purely those of the author and do not necessarily reflect the views of TFI Media. The content should be taken as the sole perspective of the writer.

Tags: entertainmentlifestyleOnline Gaming
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