By Tejas Sanjay Dongare

With the start of the pandemic in 2020, India’s digital leisure space has changed dramatically. As lockdowns limited physical mobility, the Indians increasingly shifted towards the virtual space—not only for work or studies, but even for leisure activities. Among the many industries experiencing exponential growth, online gaming led the pack. No longer considered a pastime of the youth generation, it has gained popularity among a much broader demographic and has established itself as a mainstream entertainment center in the country.

The Rise of Online Gaming in India

Spurred by affordable smartphones, high-speed broadband internet, and increasing digital literacy, online gaming in India has grown at a CAGR of over 28% between 2020 and 2023. India had over 420 million online gamers as of the end of 2023 and is expected to cross the barrier of 500 million by 2025. Mobile gaming is particularly dominant in this category, with comfortably over 90% of users choosing mobile devices for gaming purposes.

This rapid expansion has allowed the online gaming sector to overtake India’s filmed entertainment industry on a revenue basis, suggesting Indians are redefining the way they watch content and spend their leisure time. From casual to competitive e-sport and real money gaming, the sector now spans across a broad spectrum of formats and experiences.

The Dark Underbelly: Offshore Illicit Gambling Platforms

But as the legitimate gaming industry keeps growing, an illicit parallel industry has also been developing side by side—offshore illegal gambling websites. These operators, typically based in jurisdictions with poor regulatory control, prey on Indian consumers using unethical marketing techniques, deceptive advertisements and dark patterns.

Though India’s lawful online gaming market is already over ₹22,000 crore in size, estimates have indicated that illegal offshore sites take out an equivalent, if not greater, amount of money annually. These sites thrive due to taking advantage of loopholes in the regulation, specifically the complex tug-of-war between central and state powers over the jurisdiction of Indian online gaming legislation.

Adding to the problem is the fact that most of these illicit operators engage in predatory tactics, such as extending undocumented loans, making false promises in endorsements, and enticing users with “easy money” scams. In addition to drawing users into a cycle of debt, this poses grave national security issues, as such sites have been linked to money laundering, terrorist financing, and tax evasion.

Red Flags and Public Vigilance

Identification and avoiding such illegal websites is the first step towards online safety. The masses must be sensitized to identify credible gaming websites—those which have licenses, Indian law compliance, and clear financial and data protection policies.

Several cybersecurity incidents on illicit gambling platforms prove the scale of danger. For example, certain offshore operators were involved in cyber attacks on Maharashtra government portals, while others have facilitated predatory lending that has led to harassment and suicides. Lack of regulation also causes massive tax loss to the government.

Solutions: Collaboration for a Safer Digital Ecosystem

Collective governance is the answer. Government, accompanied by legal gaming websites, will have to:

  • Educate players through online campaigns of digital literacy.
  • Whitelist or license websites that meet regulatory standards and instill responsible gaming habits in the players.
  • Educate and sensitize police and other law enforcement departments about cyber laws, common cybersecurity threats and how to deal with them.
  • Delegate a centralized governing body that incorporates consistency and ease in the rules and provides checks and balances with a guarantee that good gaming practice is adhered to.

Legitimate gambling websites are already moving proactively in these directions:

  • Making investments in machine learning and AI software to detect illegal activity and cybersecurity risks.
  • Giving the customer a personalized gaming experience while keeping privacy standards intact.
  • Granting substantial budgets for building and sustaining cybersecurity frameworks.
  • Achieving full compliance with existing as well as emerging government regulations.

A Progressive Path Forward

India is poised at a juncture in its digital transformation. The online gaming revolution holds enormous potential—not just as an economic force, but also as a driver of innovation, employment, and engagement among young people. But for this potential to be fully realized, digital public safety must be given high priority.

With the synergy of activities of the government and industry stakeholders, India can establish a secure, transparent, and booming gaming ecosystem. It would not only protect citizens from the ills of illegal foreign sites but also establish a globally competitive, responsible gaming sector upon the pillars of integrity and trust.

The author is Facilitator- Professional Skill Development, OP Jindal Global University. (Views expressed are the author’s own and not necessarily those of financialexpress.com)