A recent report by consumer advocacy group CUTS International has revealed alarming statistics about the rise of illegal online betting in India. According to the report, unauthorised betting platforms such as 1xBet, Parimatch, and Stake collectively received over 5.4 billion visits in FY2024-25, making India one of the fastest-growing illegal gambling markets in the world. Annual deposits on these platforms are estimated to have crossed $100 billion, signalling a significant challenge for regulators and law enforcement agencies.
Explosive Growth, Minimal Oversight
The report sheds light on how these platforms are operating in India with little to no regulatory oversight. Many of them do not enforce basic Know Your Customer (KYC) norms or age verification, allowing even minors to participate in online gambling. The absence of mandatory checks poses a serious risk to vulnerable populations, including teenagers who are increasingly exposed to gambling ads and influencers promoting betting apps on social media platforms.
In a surprising revelation, CUTS International noted that Parimatch alone recorded more online traffic in March 2025 than tech giants like Amazon and Google in India. This shocking data point underlines the extent of user engagement and the popularity of these platforms despite their illegal status.
Loopholes and Payment Evasion
One of the most concerning aspects highlighted in the report is how these betting sites bypass digital payment restrictions. Many have introduced cash-on-delivery options, which allows users to deposit money through intermediaries, sidestepping the regulated banking channels. This not only makes enforcement difficult but also raises concerns about money laundering and the circulation of unaccounted cash in the economy.
“India has become a soft target due to its lack of robust legal and regulatory frameworks for online betting,” said a CUTS International spokesperson. “Unlike countries with comprehensive gambling laws and digital safeguards, India has been slow to implement consistent regulations, and that’s giving illegal platforms free rein.”
Inadequate Advertising Regulations
The report also flags weak advertising norms in the country. Despite several advisories from the Ministry of Information and Broadcasting, betting platforms continue to advertise through surrogate branding and influencer marketing, often disguised as sports or gaming apps. These ads frequently appear on streaming platforms, mobile games, and even during major sports tournaments, further normalising gambling behavior among the youth.
The absence of a central authority to monitor such content has created a grey area where illegal operations thrive. Experts believe this unregulated advertising environment is fueling the rapid spread of these platforms, especially among first-time gamblers.
The Need for a Central Regulator
CUTS International has strongly recommended the creation of a central gambling regulatory authority to tackle this growing menace. Such a body would be tasked with enforcing standardised norms across states, implementing payment-blocking mechanisms, ensuring age and KYC compliance, and clamping down on misleading advertisements.
Currently, gambling laws in India are mostly regulated at the state level, with no uniform approach toward online betting. This fragmented legal structure has created confusion and loopholes that illegal platforms are exploiting.
The Road Ahead
As the country experiences a digital boom, experts argue that failing to regulate online betting could lead to long-term social and financial repercussions. With billions being funneled into these unregulated platforms, the risks of addiction, fraud, and economic instability are growing.
“The government must act now,” the CUTS report concludes, “to protect its citizens from the damaging effects of unregulated online betting.”
Source: CUTS International Report, FY2024-25
Date Published: May 2025
