illegal Online betting and gambling companies act as ‘mediums’ for money laundering and terrorism financing. This conclusion has been drawn in a report by the Security and Scientific Technical Research Association of the National Defense University. The report said that the IT Rules 2021 differentiate between ‘online real money gaming’ and illegal betting and gambling practices. However, the report also suggests that a registration mechanism is needed to whitelist legitimate online gaming platforms that comply with Indian law.
Danger of cyber attack also
The Association for Security and Scientific Technical Research (SASTRA) report said that illegal online gambling and betting increases the vulnerability of Indian citizens to cyber security attacks and an unsafe online environment. They have also emerged as a threat to India’s national security as illegal online betting and gambling websites serve as “channels” for money laundering and terrorism financing,” it said, adding that the current legal and regulatory The framework does not adequately differentiate between licit and illegal activities, resulting in illicit platforms often facilitating additional illicit activities, including money laundering.
No official estimate of revenue
The report says there is no official estimate of the size of the betting and gambling market in India or the revenue generated from these activities. However, a 2017 report by the International Center for Sports Security estimated that the illegal betting and gambling market in India was worth around US$150 billion or approximately Rs 10 lakh crore. The report recommends the government to implement IT Rules 2021 for online gaming intermediaries to create a distinction in the law between legitimate online gaming and betting and gambling. The Ministry of Electronics and IT has prepared guidelines to regulate online gaming, but they have not been implemented yet. The report also cited the 59th report of the Parliamentary Standing Committee on Finance which said that illegal gambling apps pose a security threat.
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