A report by the All India Gaming Federation has revealed the extent at which players in the country engage with the black market.

The report detailed that unlicensed betting platforms had a total of 1.6 billion visits over a three month period. 

The volume of visits underlines the lack of effectiveness of the current measures being in place when it comes to halting the black market – specifically pinpointing website blocking measures as not having the desired effect. 

This partially comes down to illegal operators utilising mirroring websites to enable users to circumvent blocking regulatory takedowns and blocking protocols. 

Central to this is the usage of new UPI accounts in order to evade detection from website blocking strategies. 

The report cited RBI data from July 2024, which states that mules funnel around $300m in illicit funds every month, with the illicit gambling market being one of the most significant beneficiaries of these transactions. 

It revealed that mules provide one of the key ways for the illicit market to evade regulatory and financial frameworks, an evasion they rely on to be sustainable. 

Furthermore, there is also evidence, according to the report, that using blocking as the sole strategy when it comes to crippling the black market is simply ineffective. The report cited Norway, the UK, Denmark, Belgium, and the United States as markets that highlight this.

The network utilised by illegal operators was described by the report as “highly sophisticated”, engaging with a myriad of payment journeys and currencies – these include UPI transactions facilitated through mule accounts, cryptocurrencies, and international wallets. 

In terms of traffic drivers to the illicit market, the report cited the significant impact of social media and influencer marketing, calling on strictness of advertising policies to be increased. 

It detailed that over a three month period, social media drove 42.8 million visits to just four illegal sites, whilst referral traffic generated 247.5 million visits, primarily from adult sites, gambling affiliates and promotions on sports and video streaming platforms. 

It specifically took aim at the Facebook advertising policy, which has grown monumentally in recent times. 

Identifying how this can be combated, the report called on the relevant ministries to establish arrangements with digital advertising intermediaries, including social media platforms, search engines, and ad networks to “proactively monitor, flag, and remove illegal betting and gambling-related advertisements.” 

It also called on governing bodies and regulators to enforce stricter ad policies when it comes to ensuring direct paid advertisements are moderated. 

As well as this, it emphasised that influencers that promote illegal gambling operations should be targeted in a more intensified manner and immediately banned from platforms. 

The report continued by urging the government to form a regularly updated blacklist and whitelist of gambling operators in order to strengthen the way players are informed. 

It stated: “These lists should be continuously revised and, where possible, made publicly accessible in a user-friendly format, enabling consumers to easily distinguish between legitimate and illicit operators.

“For maximum impact, these enforcement efforts should be aligned with broader regulatory strategies, including the regulation of online gaming. 

“By providing a clear legal framework, the government cannot offer consumers better guidance, enhance consumer protection, and promote responsible gaming practices, clearly differentiating legitimate platforms from illegal platforms.”