Surge in Illegal Online Betting in India
Recent findings from the Digital India Foundation reveal a staggering increase in illegal online financial activities, particularly betting and gambling, in India. Over a span of just three months, four major websites attracted an astonishing 1.6 billion visits. The report indicates that a significant portion of these visits—over 184 million—were organic, far surpassing the 42.8 million visits generated through social media channels. This surge highlights the growing challenge of regulating online gambling in the country.
The Role of Mirror Websites
Mirror websites have emerged as a critical factor in the expansion of illegal betting operations. For instance, three mirror sites associated with Parimatch alone accounted for an additional 266 million visits. Despite government efforts to curb these activities through website blocking and advisories, illegal operators continue to flourish. The report emphasizes that these operators utilize advanced digital marketing strategies and seamless payment processing to evade enforcement measures.
The report also points out that while major digital platforms have policies against promoting betting and gambling, enforcement of these policies remains inconsistent. Notably, advertisements on Facebook’s Ad Network have seen exponential growth in recent years, further complicating the regulatory landscape.
Concerns Over Money Laundering and Terror Financing
The Parliamentary Standing Committee on Finance raised significant concerns in 2023 regarding online betting sites’ potential role in facilitating money laundering and terror financing. The report highlights that a staggering 1.098 billion visits to illegal platforms originated from users directly entering website URLs, underscoring the effectiveness of past marketing campaigns and referrals.
International experiences from countries like the UK, Norway, and the United States suggest that merely blocking websites is insufficient. These nations have achieved better results by implementing a combination of website restrictions, marketing bans, and payment blocking strategies.
Recommendations for a Comprehensive Approach
To effectively combat the rising tide of illegal online betting, the report advocates for a shift from fragmented enforcement strategies to a more holistic, ecosystem-based approach. It suggests implementing stricter controls on digital media channels that drive user acquisition, enhancing financial regulations to block illicit transactions, and improving enforcement mechanisms.
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