🎰 India: A Growing Hub for Illegal Online Betting

– Based on a report by CUTS International (2025)

🗓 Date Spotted: June 3, 2025

📍 Context

India is rapidly emerging as one of the largest centers for illegal online betting, as revealed in a 2025 report by Consumer Unity and Trust Society (CUTS) International. The report shows a disturbing trend — over 5 billion visits to unauthorized gambling websites in a single financial year, raising alarms over financial, legal, and social consequences.

🏛️ About CUTS International

CUTS is a non-profit public interest organization, founded in 1983 in India. It works on promoting consumer welfare, social justice, and fair market practices across borders. Today, it operates globally with offices in countries like Zambia, Kenya, the UK, and Vietnam.

📊 Key Findings from the Report

1. 🚀 Massive User Engagement

Platforms like 1xBet, Parimatch, Stake, Fairplay, and BateryBet attracted over 5.4 billion visits in FY25, despite being illegal under Indian law.

2. 💰 Financial Concerns

Deposits on these sites have been estimated at $100 billion annually, fueling fears about money laundering, tax evasion, and potential links to terror financing.

3. ⚠️ Lack of Regulation

Many betting platforms skip crucial security checks like Know Your Customer (KYC) and age verification, making it easy for minors to engage in high-risk gambling.

4. 📢 Loopholes in Ads and Payments

Illegal platforms are exploiting India’s advertising ecosystem and digital payment gateways, making it surprisingly easy for users to access and transact on these portals.

🎮 What Is Online Gambling?

Online gambling involves placing bets on games or events via the internet, usually in the hopes of winning money or prizes. Though the Public Gambling Act of 1867 prohibits gambling in general, the online variant falls into a legal gray area, especially when the platforms operate from offshore jurisdictions.

🚨 Major Concerns

💸 Financial Crime

There’s increasing evidence that these platforms are being used to funnel black money, posing a national security threat.

🧠 Mental Health & Addiction

Easy access to real-money games has led to growing addiction, family distress, and cases of suicide and depression among the youth.

🌐 Jurisdictional Barriers

Since most betting sites operate from outside India, enforcing laws becomes extremely complicated.

🎤 Celebrity Influence & Misleading Ads

High-profile celebrities and influencers often promote these platforms, making them look legitimate. In response, the Advertising Standards Council of India (ASCI) has flagged hundreds of misleading ads.

⚖️ Legal and Regulatory Framework

• Public Gambling Act, 1867: Prohibits gambling but is outdated for today’s digital platforms.

• State Laws: Goa, Sikkim, and Nagaland allow regulated forms of gambling, including some online betting.

• Supreme Court Rulings: Distinguishes between games of skill (legal) and games of chance (largely illegal).

• IT Act, 2011 (Amended): Says any gambling site must be hosted outside India if it offers services to Indians.

• Consumer Protection Guidelines: The CCPA warns against promoting or partnering with such illegal entities.

📘 Conclusion

The report paints a stark picture of India’s online betting ecosystem — unregulated, exploitative, and financially risky. Without timely and coordinated regulation, it may lead to widespread societal damage.

🎯 Multiple Choice Questions (MCQs)

Q1. What was the estimated total number of visits to illegal betting platforms in FY25?
A. 1.2 billion
B. 3.8 billion
✅ C. Over 5 billion
D. Under 1 billion

Q2. Which of the following platforms is not mentioned in the CUTS report?
A. 1xBet
B. Parimatch
✅ C. Dream11
D. Stake

Q3. Which Act regulates gambling at the central level in India?
A. Digital Gaming Act, 2022
B. Information Technology Act, 2011
✅ C. Public Gambling Act, 1867
D. Central Gambling Regulation Code, 2000

Q4. Which organization has flagged misleading betting advertisements in India?
A. SEBI
✅ B. ASCI
C. TRAI
D. RBI