The fast-growing illegal betting and gambling platform market in India poses a significant threat to vulnerable groups like minors and young adults, according to a report released by CUTS International, a public policy think tank focused on consumer sovereignty.
The report estimates that annual deposits on illegal gambling platforms are nearing $100 billion, raising major concerns around consumer safety, financial integrity, and national security.
The scale of the issue is evident from over 5.4 billion visits recorded across the top 15 illegal gambling platforms and 40 of their mirror sites between April 2024 and March 2025. Platforms such as 1xBet, Parimatch, Stake, Fairplay, and BateryBet consistently showed high user traffic. In March 2025, Parimatch’s traffic share surpassed that of prominent websites including Amazon, Google, Wikipedia, X, Hotstar, Flipkart, LinkedIn, Quora, and Reddit.
CUTS founder and secretary general Pradeep Mehta 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.”
Mehta 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.”
The report notes that illegal platforms appeal to users through accessible and immersive, high-risk experiences. Operators like Stake and 1xBet use advanced psychological design tactics to intensify thrill, which particularly attracts sensation-seeking youth. Many of these platforms bypass Know Your Customer (KYC) and age verification protocols, giving minors unrestricted access. Tactics like cash-on-delivery payments allow repeated gambling even for those without digital access, further increasing exposure among young users.
A key growth driver for these illegal platforms is their aggressive acquisition and engagement strategy. Over 66% of traffic—more than 3.5 billion visits—came through direct traffic, indicating habitual use and perceived trust. Mass media advertising, outdoor billboards, celebrity endorsements, and search engine optimization (SEO) contribute significantly to visibility. Over 650 million visits came through Google search, highlighting enforcement gaps.
These platforms also manipulate loopholes in India’s payment systems. Their operations often include the use of Unified Payments Interface (UPI), mule accounts, APK-based mobile apps, and even specialized tools like XHelper, designed to manage large-scale illegal fund flows.
While the Ministry of Finance has intensified efforts—blocking 357 websites, investigating nearly 700 offshore entities, and freezing around 2,000 bank accounts—the report finds these actions insufficient. It highlights the absence of a central regulator, no formal enforcement for advertising violations, and the lack of automated domain-monitoring or payment-blocking systems.
To address these gaps, the report recommends:
*Creation of a comprehensive national framework led by a high-level inter-ministerial task force
*Clear accountability across advertising, payments, and platform regulation
*Stronger collaboration with tech companies to restrict illegal gambling promotion
*Public awareness campaigns and behavioural studies to understand consumer motivations
CUTS has called for urgent and coordinated policy action to safeguard consumers and restore the integrity of India’s digital and financial ecosystem.
