Aggressive financial incentives and rapid-fire betting products offered by illegal online gambling platforms are drawing vulnerable users, including minors and those at risk of addiction, into high-risk gambling at unprecedented rates.
These platforms, unburdened by the 28 per cent GST and TDS deductions that legitimate operators must levy, lure users with more attractive payouts and instant-gratification games banned on regulated sites, reveals a report.
The report estimates that annual deposits are nearing USD 100 billion in these illegal platforms.
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.
Unlike slower, skill-based games permitted on licensed platforms, illegal sites feature fast-paced betting products that enable multiple wagers within minutes -- an approach that research links to higher rates of addictive behaviour and financial loss among users.
These platforms also bypass consumer protection measures by requiring little to no documentation, making it easier for minors and vulnerable individuals to participate. The report notes that aggressive marketing, including surrogate advertising and extensive use of private messaging and outdoor campaigns, further amplifies the reach of these sites.
"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.
The allure of illegal gambling platforms stems from their ease of access and the intense, high-risk environments they create. Sites like Stake and 1xBet employ advanced psychological strategies in their design and enable riskier forms of betting, heightening the sense of excitement for users. These adrenaline-charged settings are especially appealing to young people who seek thrills and those prone to impulsive behaviour, which significantly raises their chances of experiencing gambling-related problems.
Further, illegal gambling operators continue to facilitate the movement of funds by employing rapidly evolving tactics and exploiting loopholes and vulnerabilities in India's payment infrastructure. Such tactics include extensive use of the United Payments Interface (UPI) system, mule accounts, and mobile APKs.
Ministry of Finance on March 22, 2025, revealed intensified enforcement against offshore online entities, with nearly 700 under investigation. So far, 357 illegal or non-compliant websites/URLs have been blocked and almost 2,000 bank accounts, apart from other robust initiatives.
These platforms, unburdened by the 28 per cent GST and TDS deductions that legitimate operators must levy, lure users with more attractive payouts and instant-gratification games banned on regulated sites, reveals a report.
The report estimates that annual deposits are nearing USD 100 billion in these illegal platforms.
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.
Unlike slower, skill-based games permitted on licensed platforms, illegal sites feature fast-paced betting products that enable multiple wagers within minutes -- an approach that research links to higher rates of addictive behaviour and financial loss among users.
These platforms also bypass consumer protection measures by requiring little to no documentation, making it easier for minors and vulnerable individuals to participate. The report notes that aggressive marketing, including surrogate advertising and extensive use of private messaging and outdoor campaigns, further amplifies the reach of these sites.
"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.
The allure of illegal gambling platforms stems from their ease of access and the intense, high-risk environments they create. Sites like Stake and 1xBet employ advanced psychological strategies in their design and enable riskier forms of betting, heightening the sense of excitement for users. These adrenaline-charged settings are especially appealing to young people who seek thrills and those prone to impulsive behaviour, which significantly raises their chances of experiencing gambling-related problems.
Further, illegal gambling operators continue to facilitate the movement of funds by employing rapidly evolving tactics and exploiting loopholes and vulnerabilities in India's payment infrastructure. Such tactics include extensive use of the United Payments Interface (UPI) system, mule accounts, and mobile APKs.
Ministry of Finance on March 22, 2025, revealed intensified enforcement against offshore online entities, with nearly 700 under investigation. So far, 357 illegal or non-compliant websites/URLs have been blocked and almost 2,000 bank accounts, apart from other robust initiatives.