ASCI Flags Surge in Foreign Betting Ads; 318 Influencers Under Watch
Gambling In India: Illegal foreign betting platforms have grown rapidly in India in the recent past. Betting in this tax-free business was at its peak during the 2024 IPL season. 1.63 billion visits were made to four operators.
With the introduction of the new GST regime for legal skill games in October 2023, illegal foreign online betting platforms have grown at a very fast rate in India. Domestic operators are registered and adhere to laws such as GST and TDS. Foreign entities do not fall under the tax net. Foreign companies entice customers to play GST-free and tax-free games.
Stats indicate that 1.63 billion visits were made to four significant offshore operators (Parimatch, Stake, 1xbet, Battery Bet) in October-December 2024. Parimatch alone had 1.2 billion visits. It doesn't count APK downloads, use of VPN and mirror sites, indicating the number could be even larger. Google search trends for illegal betting apps (Dafabet, 1Xbet, Parimatch, 4Robet, Khelo24Bet) have rapidly increased since October 2023.
It peaked around the 2024 IPL season, indicating aggressive customer acquisition.
Estimates put the amount of illegal gambling in India at over $100 billion per annum. It is growing at a rate of 30% annually. At a 28% GST rate, this means a potential tax loss of over Rs 2.3 lakh crore per annum to the government. According to the RBI, an amount of Rs 2,500 crore is being sent through bogus accounts every month.
According to the Advertising Standards Council of India's 2024-25 report, 3,081 cases of foreign betting and gambling advertisements were reported, which shows a 24% increase compared to the previous year. 318 influencers who actively promote the platforms were identified.
The Directorate General of GST Intelligence has identified 658 offshore entities as unregistered or non-compliant entities. The government had told the Rajya Sabha some time ago that no foreign gambling company has been registered so far under the new GST law. According to a survey by Prahar, 87% of the 2,761 people in Hyderabad admitted that they play on foreign betting/casino platforms daily. 89% said it is quite easy for them to access them using VPNs, Telegram links, APKs or agents. The ban has curbed domestic skill gaming, but has given more momentum to foreign betting operators.
