Illegal online gambling activities in India continue to heat up, with a new report indicating that from April 2024 to March 2025, the top 15 illegal gambling platforms and their mirror sites alone amassed a total of 5.8 billion visits, revealing a vast network and operational mechanisms that these industries use to evade regulation and attract users.
According to a study released by the public policy think tank CUTS International, the tracked visits include platforms such as 1xBet, Parimatch, Stake, Fairplay, and BaterBet, along with their 40 mirror domain names, demonstrating these platforms' strong internet penetration and brand recognition.
Among them, Parimatch's traffic share even surpassed common platforms like amazon.in, Wikipedia.org, Google.co.in, LinkedIn, Quora, and Reddit. By March 2025, Parimatch's domain pari-matchin.com ranked eighth in traffic among all websites in India, following Google, YouTube, Instagram, WhatsApp, Facebook, XHamster43.desi, and ChatGPT, with a market share of 1.06%.
The report "Addressing the Odds: A Policy Blueprint for Curbing Illegal Online Gambling in India" delves into how users are drawn to these illegal platforms, how platforms acquire traffic, how payment pathways are established, and the vulnerabilities faced by the Indian regulatory system.
User Acquisition Pathways: From Dark Social to SEO Manipulation
The report shows that illegal platforms primarily rely on direct traffic to acquire users, accounting for 66%, or about 3.57 billion visits. These visits often come from users directly entering the URL, clicking on bookmarks, or through links received in private groups such as WhatsApp and Telegram.
Additionally, search engines contributed about 650 million visits, 97% of which came from Google. Researchers point out that these platforms, through aggressive search engine optimization (SEO) strategies and in the absence of regulation, successfully occupy high positions in search results, raising concerns.
Referral traffic is also significant, with about 810 million visits coming from affiliate marketing, news leads, or direct advertisements, with 1xBet relying heavily on this channel, accounting for 22.37% of its total traffic.
Social media contributed about 178 million visits, although the actual number may be higher, as in-app transitions are mostly untracked. YouTube, Reddit, Facebook, X, Instagram, and WhatsApp are widely used to promote gambling content, and the amplifying effect of social platform algorithms further complicates enforcement for regulators.
The report notes that these platforms have established a complete traffic acquisition system: using mirror sites to bypass blockages, relying on affiliate marketing and KOL promotions to expand influence, and enhancing user recognition through brand variants and offline billboards. "Merely blocking domain names or removing ads is extremely limited in effectiveness," the report points out.
Tax Burden and Incentive Mechanisms: Attracting Users to Illegal Platforms
A 28% legal deposit tax burden in India is considered one of the main drivers for users turning to illegal gambling platforms. High tax rates diminish user returns, while illegal platforms attract users through financial incentives and promotions.
Additionally, platforms like Stake and 1xBet employ "near-miss" feedback, variable reward mechanisms, and gamified push notifications as psychological manipulation designs to enhance user immersion and addictive behavior. "High-risk betting not only brings excitement but also increases the risk of anxiety, depression, and emotional fluctuations," the report states. Due to the lack of risk control and user protection tools, users face greater harm.
Payment Pathways: Dual Bypass with UPI System and Cryptocurrencies
Illegal gambling operators rely on various payment systems to evade scrutiny, with UPI (Unified Payment Interface) being singled out as the main channel. The report states that illegal platforms extensively use "mule accounts" or "rented accounts," which are often traded via Telegram or Facebook and remotely controlled by overseas gangs.
Although the Indian Ministry of Home Affairs warned of the risks of "illegal digital payment gateways" in October 2024, there is yet no sign of significantly tightened enforcement. In addition to UPI, digital wallets such as Astropay, Neteller, Skrill, and cryptocurrencies (such as Bitcoin, Tether, Ethereum) are also frequently used for illegal transactions, completely bypassing the Indian financial system.
Regulatory Delays and Lack of Control
India's current gambling regulatory system, originating from the colonial-era Public Gambling Act of 1867, is far from adequate for the digital age. Although states like Goa and Sikkim have offline casinos, online gambling still largely lacks clear regulations.
The existing policy is considered "loosely structured and slow to evolve," appearing ineffective against new digital operational methods and transnational organizations. "India's enforcement capability against illegal gambling remains severely short," the report concludes.
Recommendations for Action: Five Key Measures
CUTS suggests approaching from five major directions:
Strengthening Financial Regulation: Combat payments linked to illegal platforms, study system vulnerabilities, and enhance tracking.
Upgrading Blocking Mechanisms: Deploy AI and machine learning technologies for early warning and interception of unauthorized platforms.
Technology Cooperation Mechanism: Establish formal collaboration frameworks with large tech companies to strengthen platform regulation.
User Protection and Education: Conduct public campaigns to raise awareness of the dangers of illegal gambling.
Behavioral Insights to Drive Governance: Deeply understand user motivations to optimize intervention methods from a behavioral perspective.
Although the report does not oppose the existence of the gambling industry, it strongly urges the government to face the reality of illegal platform expansion, reform outdated regulations, and enhance the technological content of law enforcement to avoid larger-scale user harm and financial risks.
