With the commencement of the Indian Premier League (IPL), there is a burgeoning shadow that grows alongside the popular cricket league—illegal online gambling. Recent reports from the Digital India Foundation have shed light on a concerning trend where the illegal betting market is not only flourishing but is also experiencing explosive growth, estimated at a staggering $100 billion annually with a growth rate of 30%.

The surge of illicit wagers during IPL season:

Arvind Gupta, the head and co-founder of the Digital India Foundation, provided a stark overview during an interview with CNBC-TV18. Gupta elucidated that the scale of illegal operations is about 20 times larger than that of the regulated betting industry in India. He pointed out, “Despite the government’s stringent advisories and outright bans, these clandestine networks ingeniously circumvent the laws using a slew of tactics including the deployment of mirror sites, surrogate advertising, and alternative payment mechanisms to keep their operations afloat.”

The technological advances that have been a boon for global connectivity and marketing are also being leveraged to bolster these illegal gambling networks. Gupta emphasized the role of big tech companies and social media platforms, which are utilized to promote and expand these illegal activities. “Digital marketing strategies are extensively employed to attract and lure users into these unlawful gambling schemes,” he commented.

The challenge of monitoring and tracking the financial transactions associated with these illegal activities is formidable. Gupta noted, “The use of cryptocurrencies and mule accounts has rendered traditional tracking methods nearly obsolete, allowing money to move across borders with little to no traceability.” He advocated for greater international cooperation, stressing the necessity of a global effort to dismantle these sophisticated networks.

Persistent challenges and policy ineffectiveness:

The study conducted by the Digital India Foundation provides a vivid portrayal of the resilience and adaptability of illegal gambling operations, particularly during the IPL season. Notable platforms such as Parimatch, Stake, 1xBet, and Batery Bet have been identified as major players, collectively drawing billions of visits. The study reveals that even mirror versions of these sites are achieving hundreds of millions of visits, underscoring the extensive reach and penetration of these platforms.

The role of digital advertising in sustaining these illegal operations cannot be overstated. Within just three months, illegal gambling sites accrued significant traffic from social media, organic searches, and direct visits, showcasing the effectiveness of their promotional strategies. Moreover, the financial networks backing these platforms utilize a range of payment options—from cryptocurrencies to international e-wallets—making anonymous betting easier and more accessible.

The report from the Digital India Foundation calls for a comprehensive overhaul of India’s enforcement strategies. Drawing from successful international practices, the report suggests a combination of stringent digital advertising regulations, enhanced financial controls, and a robust whitelist/blocklist system to effectively regulate access to gambling platforms.