In an interview with CNBC-TV18, Gupta says India’s illegal betting market dwarfs its legal counterpart, operating at a scale at least 20x. While legally registered domestic operators generate around $5 billion, illicit networks account for $100 billion annually. “Despite various advisories and bans, these illegal entities persist by employing mirror sites, surrogate advertising, and alternative payment mechanisms to sustain operations,” he explains.
According to Gupta, a significant factor fueling this underground industry is the extensive use of big tech and social media platforms to promote illegal betting in India. These networks leverage digital marketing techniques, and online advertisements to lure users into unregulated gambling platforms.
Tracing the financial flows of these illicit operations presents another significant hurdle, Gupta says. “Cryptocurrency and mule accounts are making it nearly impossible to track funds,” he notes. With crypto transactions being largely untraceable, illegal operators can seamlessly move money across borders. Additionally, unsuspecting individuals are being used as intermediaries to facilitate transactions, further complicating law enforcement efforts.
To combat the alarming growth of these networks, Gupta calls for greater international cooperation. “This is not just a national problem—it requires a global effort. Law enforcement agencies across countries must collaborate to track and dismantle these betting syndicates,” he says.
Edited Excerpt from the Interview:
Q: What are the different channels of illegal betting in India, and what are its implications for the country?
Gupta: This is a huge problem. We have extensively studied how illegal and offshore betting networks operate in India. We started this research because we are observing a market of at least $100 billion in revenue, possibly even more, operating illegally. Despite the many efforts by the government, these networks continue to prosper because they create mirror sites, employ innovative marketing and advertising techniques, and flourish as a result.
Compare them to legally operating domestic platforms in India, which function under various jurisdictions. In that case, these legal operators conduct proper KYC, follow fair gaming practices, and, most importantly, pay GST to the government. They are accountable in many ways. However, a completely parallel market, primarily based overseas, is probably 20 to 25 times larger. While domestic legal operators generate about $5 billion, these illegal networks generate at least $100 billion. Despite advisories and government orders banning them, they keep creating mirror sites allowing them to continue operations. They operate through various nexuses, utilising innovative social media, big tech advertising techniques, and alternative payment methods such as cryptocurrency. Ultimately, this activity results in the outflow of funds.
This money is going overseas without paying taxes or following KYC regulations, meaning a significant amount is being laundered through these networks. Additionally, in many instances, we have found that such funds are being used to finance elections, which is a serious concern.
We published our report just before the start of the IPL season because we noticed a surge in these activities during this time — the traffic to these illegal betting websites spikes dramatically.
According to our study, just four or five top sites — account for approximately 1.62 billion visits annually. Even their surrogate and mirror sites, which do not even use the actual names, record 200 to 300 million visits annually. This showcases the massive scale on which these illegal operators function.
The implications of this issue are far-reaching. However, the most significant impact is on consumers. Many unsuspecting Indian users lose their money, and there is no way to trace or recover it because these platforms do not adhere to regulations.
Q: Are you saying that illegal gambling through online sites and applications is peaking during the IPL?
Gupta: Yes. It peaks during the IPL season. We observe a significant spike in activity during IPL. Since it is a short-format game with multiple matches on certain weekends, the number of bets increases drastically. This affects financial transactions and takes away the essence of enjoying cricket. The money generated through these activities is being used for purposes we cannot imagine.
Q: Where is the bulk of this money going? Has the Digital India Foundation been able to trace which countries it is going to and what it is predominantly used for?
Gupta: That area requires deeper research in collaboration with law enforcement agencies. However, the fact that you are asking this question highlights the core problem. These networks use mule accounts to transfer money from one person to another. In many cases, the account holders are unsuspecting individuals unaware that their accounts are being used for such transactions. Many UPI operators in India have issued warnings, but these networks register their companies for a legitimate purpose and then switch to gambling and illegal betting collections during the IPL season. Once the money is collected, it is transferred abroad, and these operators vanish.
These are typical fly-by-night operations. What we know conclusively is that at least ₹2,500–₹3,000 crore is transferred outside India every month, even during non-IPL months. Tracing where this money ends up is one of the most complex challenges. The problem becomes even more severe if cryptocurrency is involved because crypto transactions are largely untraceable. Money can be found anywhere in the world. Answering that question would require international law enforcement agencies to collaborate. I believe that is one of the key steps we must take moving forward.
