India’s online gambling industry has seen tremendous growth in recent years. However, this surge in interest has also paved the way for a rise in black market betting, as individuals seek ways to bypass regulations through mirror sites. Illegal platforms such as Stake, BaterBet, Fairplay, and Parimatch are drawing billions of visits, with some now generating more traffic than major Indian platforms like Google and Amazon.

In just 12 months, illegal online gambling platforms operating without licenses managed to pull over 5.8 billion visits, according to a recent report. These aren’t fly-by-night operations; they’re polished, accessible, and aggressively targeting Indian users through Telegram channels, proxy servers, and flashy promotions.

The ease of access and the lure of instant rewards, like no deposit bonuses, make these platforms dangerously appealing to first-time gamblers and seasoned players alike. This explosive growth is raising serious red flags for lawmakers and industry insiders. While legitimate platforms are tied up in legal red tape, offshore operators continue to dominate traffic charts, raking in untaxed profits and flying under the radar.

Clever Marketing Tactics

Illegal gambling sites often don’t look illegal, there are no clear signs that they’re operating outside the law. A major part of their user targeting strategy is to imitate the appearance and functionality of legitimate online casinos, mimicking the design and user experience of regulated platforms. They also rely on flashy promotions to attract players, offering promises of big wins, free spins, and easy payouts, just like any typical online casino.

In fact, more than 66% of traffic to these illegal sites, amounting to over 3.5 billion visits, comes from users actively seeking them out via Google or clicking on links shared through WhatsApp and Telegram. This suggests that many users believe these platforms are legitimate, not realizing they’re operating outside the law.

What’s even more concerning is how openly these illegal platforms are promoted in India. They appear on billboards, TV ads, and even at major sports events, sometimes with celebrity endorsements. This level of visibility can make them seem normal and widely accepted, after all, it’s not typical to see illegal activity advertised so publicly.

Payment Loopholes

It’s not just their clever marketing tactics that these platforms are getting away with, they are also exploiting payment loopholes to move money undetected. These operators rely heavily on tools like UPI transfers, fake (or “mule”) bank accounts, and unauthorized mobile apps to quietly process large volumes of transactions without drawing attention.

Alarmingly, sites like Parimatch even offer a cash-on-delivery betting option, making it easy for minors without access to digital payments to gamble regularly without their parents’ knowledge. More advanced apps, such as XHelper, are used to manage thousands of mule accounts. These accounts are often sold through platforms like Telegram or Facebook and controlled remotely from outside India, making it difficult for authorities to track or shut them down.

In late 2024, the Ministry of Home Affairs issued a warning about these illegal payment systems, many of which support not only gambling but also scams disguised as investment platforms. Despite this, the illegal flow of funds seems to be increasing, highlighting the limits of current enforcement efforts. Experts suggest that targeting the financial networks behind these platforms could be one of the most effective ways to combat the problem.

Addressing the Problem

India has begun addressing the issue by blocking over 350 websites and freezing nearly 2,000 bank accounts linked to offshore betting operations, with close to 700 entities currently under investigation. However, despite these efforts, the country’s regulatory approach remains fragmented. There is no central authority overseeing gambling, and significant gaps persist in areas such as advertising oversight, payment blocking, and domain monitoring. In contrast to more coordinated frameworks seen in countries like the UK and Australia, India lacks a unified enforcement model.

A comprehensive national strategy is needed, one that includes a dedicated inter-ministerial task force to streamline regulation, strengthen oversight of digital payments and advertising, and build partnerships with tech platforms to prevent the spread of illegal content. Public education and behavioral research are also essential to help reduce user engagement, particularly among younger audiences.

Without swift and coordinated intervention, illegal gambling could become deeply entrenched in India’s digital and financial systems, posing long-term risks to consumer protection and economic stability.