Illegal gambling sites target minors and vulnerable users: Report

New Delhi: Illegal online gambling platforms are exploiting aggressive financial incentives and rapid-fire betting products to attract vulnerable users, including minors and individuals prone to addiction, at alarming rates.

Unlike regulated operators, these platforms evade the 28 per cent GST and TDS deductions, offering higher payouts and instant-gratification games banned on legal sites, a report reveals.

Annual deposits on these illegal platforms are estimated to be approaching USD 100 billion.

The report, “Fixing the Odds: A Policy Blueprint for Curbing Illegal Online Gambling in India”, published by CUTS International, showed that illegal gambling operators are exploiting regulatory loopholes to target young adults, high spenders, and individuals especially susceptible to gambling harms.

CUTS International's analysis estimates over 5.4 billion visits to the top 15 illegal gambling platforms and their mirror sites in just one year, underscoring the scale of the problem.

"The extent of the problem can be gauged from the report's analysis – over 5.4 billion visits to the top 15 illegal gambling platforms across 40 of their mirror sites took place between April 2024 and March 2025. Top platforms such as 1xBet, Parimatch, Stake, Fairplay, and BateryBet consistently registered high traffic volumes and broad user reach.

"Traffic share for Parimatch for the month of March 2025 even outranked widely used platforms such as amazon.in, wikipedia.org, google.co.in, x.com, hotstar.com, flipkart.com, linkedin.com, quora.com, and reddit.com," the report said.

Illegal gambling sites prioritise fast-paced betting products over slower, skill-based games allowed on licensed platforms, enabling multiple wagers within minutes—an approach linked to higher rates of addiction and financial loss.

By requiring minimal documentation, these platforms sidestep consumer protection measures, making it easier for minors and vulnerable individuals to participate. The report highlights their aggressive marketing tactics, including surrogate advertising, private messaging, and outdoor campaigns, which further expand their reach.

"Over 66 per cent of total traffic, amounting to more than 3.5 billion visits (between April 2024 and March 2025), are through direct traffic, meaning users are manually entering URLs, using bookmarks, or copying links from private channels," the report said.

Illegal gambling platforms thrive on accessibility and high-risk environments, using psychological tactics to enhance excitement. Sites like Stake and 1xBet promote riskier betting forms, making them particularly appealing to thrill-seeking young users and those prone to impulsive behaviour—heightening the risk of gambling-related issues.

Additionally, operators employ evolving methods to move funds while exploiting loopholes in India's payment infrastructure. This includes extensive use of UPI, mule accounts, and mobile APKs.

On March 22, 2025, the Ministry of Finance announced intensified enforcement against offshore online entities, with nearly 700 under investigation. So far, authorities have blocked 357 illegal or non-compliant websites/URLs and frozen nearly 2,000 bank accounts, alongside other robust initiatives.

(inputs from PTI)