Authorities arrested supporters of Bachchu Kadu, an independent legislative assembly member, on Wednesday, July 10. They were protesting against online gaming and online gambling. Kadu is the leader of the Prahar Janshakti party. He and his supporters gathered near the Mahatma Gandhi statue at the state secretariat building. They carried placards and banners to call for a prohibition on online gaming and gambling.
A report by The Security and Scientific Technical Research Association at Rashtriya Raksha University highlighted significant issues. It stated that illegal online betting and gambling companies act as channels for money laundering and terrorist financing.
The IT Rules 2021 differentiate permissible online real money gaming from illegal betting and gambling practices. However, the report suggested the need for a registration mechanism. This mechanism would whitelist legitimate online real money gaming platforms that operate in compliance with Indian laws.
The Security and Scientific Technical Research Association (SASTRA) report highlighted several concerns. It stated that illegal online gambling and betting applications expose Indian digital citizens to significant security risks. These risks include cybersecurity attacks and unsafe online environments. Additionally, these illegal platforms have emerged as a threat to India’s national security. They act as channels for money laundering and terrorist financing.
It said that the current legal and regulatory framework doesn’t sufficiently distinguish between legitimate and illegitimate activities. As a result, illegal platforms regularly facilitate additional illegal activities. This includes money laundering.
The report said there is no official estimate on the size of the betting and gambling market in India. It also mentioned that there is no official data on the revenue generated by these activities. However, a 2017 International Center for Sports Security report provided an estimate. It valued the illegal betting and gambling market in India at USD 150 billion. This is nearly Rs 10 lakh crore.
The report said these rogue players siphon money out of the economy. This leaves a trail of financial instability and fuels criminal activity.
