The illegal betting market in India is flourishing, with a shocking annual deposit volume estimated at a staggering $100 billion, according to a recent report by the Centre for Knowledge Sovereignty (CKS). This figure, coupled with a projected 30% growth rate, paints a concerning picture of an unregulated industry posing significant threats.
The report emphasizes several risks associated with illegal betting:
The report, titled "Illegal Gambling and Betting in India: Risks, Challenges, and Responses," delves into the critical risks associated with this unregulated market. Offshore gaming, betting, and gambling apps raise major concerns for national security, data sovereignty, and financial integrity.
Lt General Vinod G. Khandare and Vinit Goenka, authors of the white paper, highlight the link between illicit betting activities and foreign entities. This connection raises serious security concerns, including potential espionage, data breaches, and money laundering.
The report sheds light on the detrimental impact of illegal gambling on India's financial ecosystem. Suspicious transactions and cryptocurrency dealings associated with these activities not only compromise financial stability but also lead to a significant loss of potential tax revenue for the country.
The white paper emphasizes a critical concern – data protection. Illegal platforms often collect sensitive user information without adequate safeguards, leaving users vulnerable to data theft and cybercrimes. This problem is exacerbated by the lack of robust consumer protection mechanisms and the sophisticated cyber technologies employed by illicit operators.
Vinit Goenka, Founder Secretary of CKS, emphasizes the urgency of addressing this issue: "The unchecked growth of illegal gambling poses a severe threat to India's national security and economic integrity. It is imperative that we take proactive measures to regulate and control these activities."
Goenka proposes a multi-pronged approach, including stricter regulations on gambling advertisements, public awareness campaigns, and collaborative efforts between government agencies, financial institutions, and technology providers.
The Centre for Knowledge Sovereignty (CKS) report also acknowledges the potential of legalizing and regulating online skill-based gaming. This could provide a safe and legitimate alternative for gamers, while ensuring consumer protection and generating tax revenue for the economy.
The findings of the CKS report highlight the critical need for proactive policy frameworks to combat illegal gambling effectively. By implementing comprehensive regulations, India can safeguard its citizens and economic interests from the pervasive risks associated with illicit betting and gambling activities.