NATIONAL: Illegal Betting Industry Surges Past $100B, Set to Peak During IPL
Massive Growth in Illegal Gambling in India
Illegal betting and gambling in India have surpassed a staggering $100 billion annually, with a growth rate of 30% per year, according to a report by the Digital India Foundation. The report warns that the upcoming Indian Premier League (IPL) season will further fuel this underground industry, drawing millions of users to unregulated platforms.
Betting Platforms Witness Unprecedented Traffic
The report highlights that four major illegal betting platforms—Parimatch, Stake, 1xBet, and Battery Bet—received 1.6 billion visits in just three months between October and December 2024. This influx of users underscores the rising popularity of online gambling despite stringent regulations.
Social Media’s Role in Driving Traffic to Betting Sites
A significant portion of traffic to these betting platforms is generated through social media platforms like Facebook and Telegram, which collectively contributed to 42.8 million visits during the same period. Arvind Gupta, founder of the Digital India Foundation, told CNBC-TV that many of these visits come from paid advertisements and promotions run on Facebook’s Ad Network and other social media channels.
SEO & Influencer Marketing Boosting Illegal Betting Apps
Illegal betting operators employ advanced Search Engine Optimization (SEO) techniques to ensure their websites rank high for searches like “best IPL betting site” and “online casino without KYC.” Additionally, social media influencers with large followings are actively promoting gambling-related content, further increasing engagement with these platforms.
Betting Apps and the Risk of Financial Crimes
Gupta cautioned that illegal betting applications could be used for money laundering and illicit financial activities, including funding overseas election campaigns. He also pointed out that numerous mule accounts make it challenging to track financial transactions, leaving many Indian users vulnerable to scams.
Meta’s Role in Hosting Betting Ads
The report sheds light on Meta’s (formerly Facebook) involvement in this growing issue. It reveals that, until recently, Meta hosted over 1,040 advertisements related to betting and gambling across its platforms, including Facebook, Instagram, and Messenger. The presence of such ads indicates a lack of stringent regulation on digital advertising for illegal gambling.
Need for Government Intervention & Regulatory Measures
The report calls for government intervention and stricter regulations to curb illegal betting. It emphasizes the need for collaboration between authorities and social media companies to tackle the issue beyond merely blocking websites. The report also recommends holding social media platforms accountable for advertising such platforms and enforcing a ban on payments for illegal betting ads.