Mumbai: According to a recent report by the Digital India Foundation, India’s booming illegal gambling and betting market is growing at an alarming rate, and major tech players like Meta and Google must take active steps to help curb the issue. The report titled ‘Illegal Gambling and Betting Market in India: The Scale and Enablers’ highlights the urgent need for a more comprehensive approach to dismantling the illegal gambling ecosystem that heavily relies on digital advertising, social media platforms, and online payment technologies.
With illegal gambling and betting platforms generating over USD 100 billion in deposits annually, and growing at a rate of 30% per year, the market has become increasingly sophisticated, making it challenging for Indian regulators to tackle the issue effectively. The report reveals that four major illegal platforms – Parimatch, Stake, 1xBet, and Battery Bet – received 1.6 billion visits in just three months (October to December 2024), with a significant chunk of traffic coming from social media platforms.
The foundation stresses the importance of a coordinated ecosystem approach involving stakeholders across the digital advertising and social media spectrum. It calls for stronger enforcement of existing regulations and a more proactive role from tech giants such as Meta and Google to combat the rampant illegal gambling and betting advertisements that are contributing to the market’s growth.
Dr. Arvind Gupta, Head and Co-Founder of the Digital India Foundation, commented, “The growth of illegal betting platforms has desensitized users, who are unknowingly engaging with illegal operators. Standalone measures such as blocking websites are not enough to address this issue. A holistic strategy targeting the entire ecosystem—advertising, payment systems, and software providers—is essential. This involves holding big tech companies like Google and Meta accountable for their role in promoting illegal platforms.”
While the Indian government has attempted to curb illegal gambling by blocking websites and issuing advisories, these actions have had limited success. The report recommends that Indian regulators such as the Ministry of Information and Broadcasting (MIB), I4C, and MeitY collaborate with digital advertising platforms and social media companies to monitor, flag, and remove illegal gambling and betting-related advertisements.
The report suggests several measures that can be undertaken to combat this issue, including strict enforcement of advertising policies to ban paid advertisements for illegal gambling platforms, enhanced content moderation, and the immediate suspension of influencers promoting such operators. Additionally, search engine results should be downgraded to ensure safer browsing options for users.
Globally, regulators have already started collaborating with social media platforms like Meta, X, and Google to take down illegal gambling content and remove ads. In the United States, the Unlawful Internet Gambling Enforcement Act (UIGEA) blocks payments to illegal gambling sites, targeting financial institutions and payment processors instead of individual users. This model, the report argues, could serve as a valuable framework for India’s regulatory approach.
The illegal gambling and betting sector is thriving due to aggressive digital marketing tactics, including paid ads on social media, SEO strategies to rank high on search engines, and influencer marketing. Google search trends from 2021 to 2024 show a surge in searches related to illegal betting platforms, particularly during high-profile sports events like the Indian Premier League (IPL). Furthermore, platforms like WhatsApp, Telegram, and YouTube are being increasingly used to broadcast gambling-related ads, magnifying the problem.
Key Findings from the Report:
The illegal gambling market in India is projected to grow at 30% annually, exceeding USD 100 billion per year in deposits.
Social media platforms like Facebook and Instagram are major traffic sources for illegal gambling sites, with over 42.8 million visits driven by paid ads, promoted content, and influencer marketing.
Aggressive SEO tactics have allowed illegal platforms to rank highly in search results, particularly during popular events such as the IPL.
Meta alone had over 1,000 ads promoting gambling and betting on its platforms during the study period.
The report concludes by calling for a more coordinated approach to curb illegal betting and gambling in India, focusing on the enforcement of digital advertising policies, improved content moderation, and collaboration with major tech players like Meta and Google.
The Digital India Foundation urges policymakers, regulators, and the tech industry to work together to create a safer digital environment and protect India’s growing online economy from the harmful impact of illegal gambling operations.