Facebook ads fueling Illegal Gambling in India

A report by the All India Gaming Federation has revealed the extent to 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 implemented to halt the black market, specifically pinpointing website blocking measures as not having the desired effect.

This issue partially stems from illegal operators utilizing mirroring websites, which enable users to circumvent blocking regulatory takedowns and blocking protocols.

Central to this problem is the usage of new UPI accounts aimed at evading detection from website blocking strategies.

The report cited RBI data from July 2024, which states that mules funnel around $300 million 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 methods for the illicit market to evade regulatory and financial frameworks—an evasion they rely on to remain sustainable.

Furthermore, there is evidence suggesting that using blocking as the sole strategy to cripple the black market is simply ineffective. The report cited Norway, the UK, Denmark, Belgium, and the United States as markets that highlight this issue.

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

Regarding traffic drivers to the illicit market, the report noted the significant impact of social media and influencer marketing, calling for stricter advertising policies to be enforced.

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

The report particularly critiqued the Facebook advertising policy, which has seen significant growth recently.

To combat these issues, the report urged 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 to ensure direct paid advertisements are adequately moderated.

Additionally, it emphasized that influencers promoting illegal gambling operations should be targeted more intensively and banned immediately from platforms.

The report further called on the government to create a regularly updated blacklist and whitelist of gambling operators to improve how 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 can offer consumers better guidance, enhance consumer protection, and promote responsible gaming practices, clearly differentiating legitimate platforms from illegal platforms.”