Urgent need for collective action against illegal online gaming

• Coordinated approach is vital to curb money laundering, prevent tax evasion, and protect vulnerable individuals from the harmful effects of illegal online gambling.
• Financial institutions must be empowered to block transactions destined for blacklisted websites, effectively cutting off their funding sources.

The burgeoning illegal online gaming sector in India poses a significant threat, demanding immediate and coordinated action.

 A recent report by the Digital India Foundation underscores the alarming scale of this industry, exceeding $100 billion annually and growing at a rapid 30 per cent per year.

This necessitates a concerted effort by the Indian government and major technology companies like Google and Meta to dismantle the sophisticated network enabling these illegal operations. The current fragmented approach is demonstrably insufficient, demanding a shift towards a comprehensive, ecosystem-based strategy.

Multi-pronged approach is crucial

The report highlights that illegal operators thrive through a network of enablers, including digital advertising and marketing channels, payment systems, and software providers.

Critically, platforms like Google and Meta inadvertently contribute to this ecosystem through advertising revenue generated from these illegal sites.

While these companies may not directly engage in illegal activities, their revenue models indirectly incentivise the proliferation of these platforms, making them complicit in the ongoing damage. This underscores the ethical imperative for these tech giants to actively collaborate with Indian regulators in combating this illicit industry.

A multi-pronged approach is crucial for effective disruption. Website blocking alone is insufficient, as these operators circumvent regulations by utilising multiple mirror websites. Drawing lessons from international jurisdictions like Norway, the UK, and the US, India must implement a combination of strategies.

These include stricter marketing restrictions, payment blocking, and the implementation of whitelist/blacklist mechanisms. Financial institutions must be empowered to block transactions destined for blacklisted websites, effectively cutting off their funding sources.

Need to raise awareness

Furthermore, a “whitelist” of compliant, tax-paying gaming companies should be established to provide legitimacy and encourage responsible gaming practices.

The role of influencers in promoting these illegal platforms also requires immediate attention. The report highlights that influencers are often unknowingly promoting these sites, leading to significant user acquisition.

Increased awareness and education initiatives aimed at influencers are necessary to highlight the potential harm and legal ramifications associated with promoting illegal gambling platforms.

Ultimately, a collaborative effort between the government and big tech is essential. The government must provide the necessary regulatory framework and enforcement mechanisms, while tech companies must actively monitor and remove illegal advertising, restrict access to illicit platforms, and cooperate in investigations.

This coordinated approach is vital to curb money laundering, prevent tax evasion, and protect vulnerable individuals from the harmful effects of illegal online gambling.

_{Images are for reference only.Images and contents gathered automatic from google or 3rd party sources.All rights on the images and contents are with their legal original owners.}