A report by the Digital India Foundation (DIF) identifies money laundering as a significant threat. It poses risks to the integrity and long-term success of the Indian online gaming sector. It recommends that the government establish a whitelist of compliant gaming companies. This ensures that payment gateways and Internet Service Providers serve only the listed operators.
The report titled “Combating Money Laundering in the Online Gaming Ecosystem” states that the use of international online betting sites for money laundering and terror financing has become a key trend in cybercrime. It suggests establishing a dedicated task force to crack down on illegal operators. The report also recommends implementing stringent Know Your Customer (KYC) practices and taking action against misleading advertisements.
DIF is a not-for-profit think-tank. It released the report last October 24, Thursday. It is based on a review of related literature, discussions with experts and stakeholders. The contributors included former high-ranking government officials, scientists, academicians, as well as experts from gaming, public policy, cybersecurity, investigations and artificial intelligence fields.
The report states that the Indian RMG or real money gaming sector has become a key player in the global market with a compounded annual growth rate of 28% from FY20 to FY23. Analysts project that its revenue will reach $7.5 billion within the next five years.
However, the report’s extensive research and consultations have shown that several challenges threaten the sector. These include issues related to financial integrity, cybersecurity, and user protection, all of which can impede progress. The illegal betting market in India attracts over $100 billion in deposits annually, underscoring the severity of these challenges.
The report raises concerns about the possible misuse of in-game assets and cryptocurrencies. It also highlights the operation of illegal offshore online betting platforms.
