Illegal betting booms in India; no central regulator puts minors, users at risk: report
The illegal online gambling market in India has grown quickly in recent years. This growth is mainly because platforms use modern technology like mobile apps, websites, and social media to reach many people, even in remote areas.
A new report by CUTS International, a public policy think tank focused on consumer rights, shows the serious increase in illegal online gambling in India. The report, titled ‘Fixing the Odds: A Policy Blueprint for Curbing Illegal Online Gambling in India’, explains how these illegal platforms are causing harm to people, the economy, and the country’s security.
How illegal gambling is growing
Illegal gambling sites take advantage of India’s unclear and inconsistent laws. Some states allow gambling with rules, while others have old laws that don’t work well against online platforms. These illegal operators use tricks like changing their website addresses and heavy marketing on social media to attract people, especially young users.
Between April 2024 and March 2025, the top 15 illegal gambling sites, including popular names like 1xBet, Parimatch, Stake, Fairplay, and BateryBet, got more than 5.4 billion visits. In March 2025, Parimatch had more visitors than popular Indian sites like amazon.in and wikipedia.org.
Dangerous gambling products and vulnerable users
Illegal sites offer fast betting options that let users place many bets in a short time. This increases the chance of addiction and financial loss. Unlike legal sites, illegal platforms do not follow important rules like verifying users’ age or identity. This makes it easy for minors and vulnerable people to gamble.
The report says deposits on illegal sites are close to USD 100 billion each year. These operators do not pay taxes or fees required by law, such as the 28% GST and TDS tax. Because of this, they can offer bigger payouts and games that legal sites cannot.
Pradeep Mehta, Founder and Secretary General of CUTS International, said, “Illegal gambling operators are systematically exploiting India’s advertising and payment infrastructure, siphoning off crores of rupees from outside the country. This presents a major national security threat and also exposes Indian consumers to serious harm.”
How users find these sites
More than 66% of all visits to illegal gambling sites come from direct sources—people typing the website address, using bookmarks, or clicking shared links. This makes the sites seem trustworthy and well-known.
These illegal sites also use TV ads, billboards, celebrity promotions, and other media to attract users. Search engines like Google help too, sending over 650 million visits by showing these sites in search results.
How payments are handled
Illegal gambling sites use India’s payment systems, like UPI, and networks of money mule accounts to move money. They use special apps like XHelper to manage these accounts and keep their illegal operations running.
Government efforts and challenges
The Indian government has started cracking down. The Ministry of Finance said in March 2025 that it is investigating nearly 700 illegal gambling companies. So far, 357 illegal websites have been blocked and about 2,000 bank accounts frozen. But these actions are mostly reactive and manual.
CUTS points out that India has no central authority to regulate or monitor illegal gambling properly. There is no clear system to check advertisements, block payments, or track illegal websites.
What needs to be done
The to clearly assign responsibility for controlling payments, ads, websites, and financial transactions linked to illegal gambling. It recommends forming a high-level task force involving different government departments.
It also advises working closely with technology companies to reduce illegal gambling advertising, launching awareness campaigns for the public, and studying why people keep using illegal gambling sites despite the risks.
Mehta further added, “This report’s policy gap assessment reveals a disturbing reality – that while many jurisdictions around the world are introducing strict penalties on illegal gambling and building enforcement partnerships with major tech platforms, India continues to lack basic safeguards. Without urgent regulatory action, these platforms will keep targeting unsuspecting and vulnerable consumers. We must act swiftly to protect Indian users and restore integrity to our digital ecosystem.”
As illegal online gambling in India grows quickly, it brings serious risks to people, the economy, and the country’s security. The CUTS International report clearly shows that these platforms are using technology and gaps in the law to operate without control. It is urgent for the government and all involved to work together with strong policies and better enforcement to stop illegal gambling, protect users, and secure India’s financial system and safety. Without quick action, these problems will only get worse.
