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India Emerges as Major Hub for Illegal Online Gambling, Says CUTS Report

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Context:

Over 5.4 billion visits were recorded in FY25 to the top 15 unauthorised gambling platforms, including 1xBet, Parimatch, Stake, Fairplay, and BateryBet, according to a report by CUTS International.

  • Estimated annual deposits on these illegal platforms: $100 billion.
  • High direct traffic share (66% of 5.4 billion visits) shows strong brand recall and engagement, largely bypassing search engines or regulated app ecosystems.

Major Policy and Enforcement Gaps

  • No central regulator for online betting/gambling in India.
  • Lack of:
    • KYC norms
    • Age verification protocols
    • Payment-blocking mechanisms
    • Monitoring of advertising and domain activity
  • Minors and young adults have unregulated access due to absence of safeguards.
  • Some platforms (e.g., Parimatch) use cash-on-delivery payment models, further easing access for underage users.

National Security & Consumer Harm

  • Platforms siphon crores of rupees abroad, raising national security concerns.
  • Psychologically manipulative design increases risk of gambling addiction, particularly among:
    • Youth
    • Sensation-seeking and impulsive individuals
  • These sites offer high-stakes, immersive experiences designed to promote risky betting behavior.

Alarming Online Visibility

  • In March 2025, Parimatch’s traffic surpassed major Indian domains like:
    • amazon.in
    • wikipedia.org
    • google.co.in
    • flipkart.com
    • linkedin.com

Aggressive User Acquisition & Engagement Strategies

  • Use of:
    • Mass media advertising (TV, billboards)
    • Celebrity endorsements
    • Private channel link sharing (WhatsApp, Telegram, etc.)
  • These platforms create an illusion of credibility, attracting repeat and long-term users.

Recommendations from CUTS International

  1. Establish a central gambling regulator
  2. Ban advertising of illegal betting platforms
  3. Implement payment gateway restrictions
  4. Strengthen age and KYC compliance
  5. Launch public awareness campaigns

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