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According to a recent study by the Digital India Foundation, illegal online gambling sites have significantly increased in number in India. The study highlights how stricter legislation must be implemented by the government to curb this growing issue.
Primatch, Stake, 1xBet, and BateryBet, the four leading offshore gambling companies, had an astounding 1.6 billion visits from Indian customers in just three months, the poll found. 247.5 million of these visits were referred by affiliates, adults, or streaming platform promotions, while 1.1 billion were the result of players entering URLs directly into their browsers. 42.8 million visits were also made to social media sites. From February 2021 to December 2024, Google Trends data showed a “exponential rise” in searches for non-legal gambling websites.
The report estimates that 448 million Indian players are engaged in online gaming, spanning consoles, social games, and real-money gambling. The most concerning instances involve financial transactions or transactions with monetary benefits. Among the wide range of options available, PayTM betting apps in India have become a convenient method for users to access gaming platforms and process payments within the local ecosystem. In October 2024, the Digital India Foundation warned of fraud, money laundering, and terrorism funding within 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 is now advocating for “enhanced oversight, stronger KYC practices, and improved systems by financial institutions” to curb the illegal online gambling market.
In 1867, the Public gaming Act forbade the operation of gaming houses and the possession of gambling devices, marking the beginning of India’s history of regulating the gambling sector. The Prize Competition Act of 1955 sought to restrict gaming that gave out prizes.
A push to create a self-regulatory organization to monitor the gambling sector was made in 2023, but the plan never came to fruition. At the moment, Goa and Sikkim have the only in-person casinos in India’s legal gambling business, which comprises of table games and slots. It is still unlawful to wager on sports online.
According to a research released in November 2023 by the venture capital firm Lumikai, 10% of Indian smartphone users—roughly 148 million people—play online games that involve money transactions.