With India’s Online Gambling Industry’ Vulnerable’ to Fraud, How Can Players Stay Safe at Online Casinos?

While online casinos and betting are growing in popularity as pastimes right across Indian society, there is concern that the industry is not adequately equipped to deal with potential online fraud. India and gambling are paradoxes in more ways than one. Despite being one of the largest markets in the world with a projected revenue of $2.9 billion, and while only a tiny proportion of the population is estimated to participate at the moment, the industry is set for growth. It is estimated it could employ over 2.5 million people by the end of next year.

Maybe it is because it is currently regarded as a niche entertainment that more has not been done to ensure financial safeguards are in place, or maybe it is because, despite being so enormous in real terms, it has not received adequate scrutiny and is an easy target for fraudsters. Unlike the more established film and tv industries, iGaming is still in its infancy.

In a recent report, “Combating Money Laundering in the Online Gaming Ecosystem”, the Digital India Foundation (DIF) warned of fraud, money laundering and terrorism financing in the country’s online gaming industry. The question is how players can keep themselves safe and navigate safely online. Players want to have fun, but they need to do so without taking any unnecessary risks. There is no doubt that plenty of sites out there do not meet standards expected elsewhere in the world. Sadly, many have been created to defraud unwitting players or as fronts for criminal enterprises.

With legal real-money gaming having an estimated 90 million players a day, the market grew by 25% between 2020 and 2023. The market is seen as one of real growth and opportunities for international operators. However, the report claimed there were “vulnerabilities within India’s online gaming ecosystem… (which)pose significant challenges to financial integrity” and make it of particular interest to criminals looking to exploit the system.

Illegal operators are openly using trickery to lure people to their sites, and despite ongoing regulatory efforts, the scam operators are using VPNs, mirror sites, geo-blockers and other workarounds. Digital India Foundation’s co-founder, Arvind Gupta, has expressed concern about an explosion of illegal online gambling sites.

Fortunately, help is at hand. There are experts out there who have decades of experience in sorting out the wheat from the chaff when it comes to recommending where people should place their bets. iGamers worldwide use trusted review sites – even in markets with fewer potential problems and very tight regulation. Independent reviewers look through hundreds of sites to find the best online casinos in India and help players avoid pitfalls.

The scammers are incredibly sophisticated and use all kinds of tricks to mislead unwitting players. They set up clone sites of reputable businesses, replicate branding and make disproportionate promises. A good rule of thumb guide is that if the odds or size of the jackpot look too good to be true then they almost certainly are too good to be true.

Expert reviewers always advise players to check out other player reviews before signing up for anything. They also advise iGamers to double-check simple security issues, such as ensuring the site is securely hosted (HTTPS and not just HTTP) and that the online sites are partnered with trusted payment providers and reputable gaming software companies. If anything does not feel right, walk away.

Some sites are essentially scam sites, and others are just a bit dodgy. For example, they take forever to pay out or do not have anyone to contact if something goes wrong. The advice is to try out customer services before setting up an account. See how quickly they respond to queries. However, be aware that sites might be very helpful to get a player to register but not easy to get in touch with should the player encounter a problem later on.

According to the report, both operators and customers are potentially at risk from money laundering sites. The use of cash and cryptocurrencies for deposits and payments can easily be used to hide ill-gotten gains. Virtual assets and cash can make money earned through nefarious means appear legitimate. This means that a player might accidentally stumble across a site that was never meant to be a genuine online casino but was simply a front to ‘wash money’. Trusted reviewers can spot sites like these sites quickly and warn people off. However, it is not always so easy for a relatively inexperienced player.

The scam sites are very sophisticated. The report claims that

“The enhanced ability to transfer and convert gaming assets into fiat currency or crypto assets has resulted in a rise in money laundering and fraud.”

While they are there to ensure that players are kept safe, the DIF is calling on the government for coordinated, national action to counteract and prevent cyber fraud. It is calling for:

A dedicated task to combat illegal iGaming

A ‘whitelist’ of approved domestic and offshore sites and operators.

Government commitment to identify and block illicit sites

A public awareness campaign to warn players of the presence of potentially fraudulent operators.

It is not just the DIF who are sounding the alarm. In July, a report from Rashtriya Raksha University’s Security and Scientific Technical Research Association (SASTRA) recommended compiling a list of iGaming sites compliant with Indian law. They said that illegal sites exposed India’s internet users (known as digital nagriks) to cybersecurity attacks and potentially unsafe online environments.

SASTRA’s report said that illegal sites were an emerging threat to India’s national security and also confirmed that they were being used as channels for terrorist financing and money laundering. They went on to report that the take from illegal online betting far outstrips that from legal sites. The New Delhi Business Standard reported SASTRA as saying,

“These rogue players siphon money out of our economy, leaving a trail of financial instability, thereby fuelling criminal activity.”

With over 400 home-grown start-ups employing directly and indirectly around 100,000 people, it has been noted that the online gaming sector is vital to India’s future and needs additional safeguards to be introduced.

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