Taming the Wild West: Addressing Money Laundering in India's Gaming Boom

The Indian online gaming sector faces challenges from money laundering that threaten its growth and the broader digital economy. A report by the Digital India Foundation outlines necessary measures such as forming a task force, whitelisting legal operators, and enhancing financial integrity. Despite rapid growth, regulatory oversight remains weak, risking future expansion.

The Indian online gaming sector is under scrutiny as a new report highlights the pressing need to address money laundering issues threatening its growth and the country's digital economy. The Digital India Foundation outlined urgent measures, urging the creation of a task force to deal with illegal operators and enforce stronger oversight to ensure financial integrity.

The sector, which has seen a Compound Annual Growth Rate of 28% from FY20 to FY23, is poised to achieve a revenue of USD 7.5 billion in the next five years. Despite this success, challenges such as cybersecurity, user protection, and financial integrity pose significant obstacles, the report highlights.

The illegal betting market in India attracts over USD 100 billion in deposits annually, exacerbating the severity of the money laundering problem. The report suggests implementing AI-driven detection and building strong investigative teams to combat illicit activities. It also emphasizes the lack of regulation and enforcement, pointing out that the sector's vulnerability could hinder its future potential.

(With inputs from agencies.)