Illegal betting, gambling exceed $100B/year, to peak during IPL
What's the story
The next Indian Premier League (IPL) season is expected to spark a massive surge in illegal betting and gambling activities across India.
According to a report by Digital India Foundation, these illegal activities are currently worth over $100 billion per year, growing at an alarming rate of 30% per year.
The report also noted that four major betting platforms—Parimatch, Stake, 1xBet, and Battery Bet—received a whopping 1.6 billion visits in just three months between October and December 2024.
Online influence
Social media platforms drive traffic to betting sites
The report further reveals that social media platforms like Facebook and Telegram were responsible for driving a major chunk of the traffic to these betting sites.
Specifically, they accounted for 42.8 million visits during the same three-month period.
Speaking to CNBC-TV, Arvind Gupta, founder of Digital India Foundation, said this traffic is largely generated through direct paid ads from Facebook Ad Network and other promotional activities on social media.
Marketing strategies
Illegal betting apps use SEO and social media for promotion
The report emphasizes that illegal betting app operators are using a range of tactics to promote their platforms.
This includes search engine optimization (SEO) tactics to make sure their sites show up in searches like "best IPL betting site" or "online casino without KYC."
Influencers with large followings are also promoting gambling advertisements.
Social media's role
The role of social media in illegal betting
Gupta further stressed on social media's role in enabling these illegal activities.
He revealed that many of these illegal betting apps could be used for money laundering or funding illegal activities, even overseas election financing.
Gupta also noted that many Indian citizens are scammed on these platforms due to the high number of mule accounts, making it difficult to trace where the betting proceeds go.
Advertising concerns
Meta's involvement in illegal betting ads
The report also highlights Meta's role in this. It says that until recently, Meta hosted 1,040 ads related to betting and gambling on its platforms Facebook, Instagram, and Messenger.
Gupta stressed the need for the government to work with social media companies for a holistic approach beyond just blocking websites.
The report recommends holding social media companies accountable for advertising such illegal platforms and banning payments for these ads.