How Illegal Betting Websites Still Operate in India (2026) — a Gamblinghood Brief

Introduction

Even though betting remains largely restricted or illegal in most parts of India, thousands of online betting websites are still active in 2026. These platforms, often disguised as international gaming portals, lure Indian players with promises of easy money, instant withdrawals, and huge bonuses.

According to Gamblinghood’s 2026 analysis, the Indian underground betting economy has grown nearly 30% year-over-year, fueled by crypto adoption, Telegram networks, and weak enforcement coordination between states.

But how do these illegal websites continue to operate so openly? The answer lies in advanced digital loopholes, foreign hosting, and a deep understanding of how to bypass Indian laws.

Offshore Servers: The Core of the Operation

Most illegal betting platforms operate from servers hosted outside India — mainly in jurisdictions like Curaçao, Cyprus, or Eastern Europe. By setting up domains offshore, these operators fall outside the direct legal control of Indian authorities.

Even if a site is banned domestically, it can easily launch mirror domains with new URLs within hours. This endless game of “domain whack-a-mole” keeps illegal betting platforms alive.

Gamblinghood found that some of these operators run over 500 mirror links simultaneously, redirecting users automatically if one domain is blocked.

VPNs and Proxy Networks

VPNs have become the primary tool that allows Indian users to access banned gambling sites. In 2026, VPN technology is faster, cheaper, and easily accessible.

Illegal betting operators actively encourage users to install free VPN apps and even provide step-by-step guides on how to bypass regional restrictions. Some sites even include built-in proxy layers so users don’t need separate VPN software at all.

This seamless circumvention makes it nearly impossible for regulators or ISPs to track user activity or block websites effectively.

Payment Loopholes and Crypto Transactions

Perhaps the biggest enabler of illegal gambling in India today is cryptocurrency. With the rise of stablecoins like USDT and digital wallets that require minimal identity verification, online casinos can process deposits and withdrawals instantly.

Illegal websites often use these methods:

• Accepting deposits in Bitcoin, Ethereum, or stablecoins.

• Using offshore payment gateways that mimic e-commerce portals.

• Laundering winnings through prepaid cards or voucher-based wallets.

Some platforms even accept UPI transfers disguised as “service payments” to random Indian accounts — part of a massive mule network run by intermediaries who earn commissions for facilitating illegal transactions.

Gamblinghood’s field analysis found that several Telegram betting groups manage hundreds of such mule accounts, rotating them weekly to avoid detection.

Fake KYC and Identity Laundering

Legal platforms in India require strict KYC (Know Your Customer) verification. Illegal websites bypass this by using forged or stolen ID documents. Some offer “quick KYC approval” in under five minutes — an obvious red flag.

In 2026, AI-based fake ID generation tools make it easy to create realistic PAN or Aadhaar scans, which illegal operators use to onboard players quickly.

These lax verification systems not only violate law but also expose players to serious risks like identity theft and money laundering investigations.

Social Media Recruitment and Telegram Groups

Illegal betting operators heavily depend on private messaging apps and influencers to attract players. Telegram, WhatsApp, and Instagram are filled with groups promising “fixed matches” and “sure wins.”

Promoters receive commissions for every new player they bring in, creating a vast affiliate web of micro-influencers. Many groups also promote special bonus codes and jackpot contests to keep players hooked.

By 2026, more than 70% of illegal betting traffic in India originates from Telegram channels, according to Gamblinghood data.

Weak Enforcement and Legal Gaps

The Indian government has increased raids, payment bans, and domain block orders since 2024, but enforcement still lags behind the operators’ adaptability.

The primary reasons include:

• Fragmented laws across states — gambling legality varies regionally.

• Lack of coordination between telecom, banking, and cybercrime units.

• Slow takedown process for foreign-hosted domains.

• Poor real-time monitoring of payment patterns.

Even when authorities block a platform, it quickly reappears under a new brand name. Players rarely face penalties, which further encourages demand.

Gamblinghood’s 2026 enforcement study reveals that 80% of banned betting sites reappear within two weeks.

The Crypto Shield

Crypto payments have become the invisible backbone of India’s illegal betting economy. They provide speed, anonymity, and global accessibility — exactly what regulators struggle to control.

Operators now use decentralized wallets and blockchain mixers to hide transaction trails. Some even integrate in-wallet games that allow betting directly from crypto balances without ever touching fiat money.

This “crypto shield” has made it extremely difficult for agencies to trace funds or prove jurisdiction.

How Players Get Trapped

Illegal platforms offer tempting bonuses and “100% guaranteed wins” to attract new players. But once inside, users face serious risks:

• Rigged algorithms that ensure long-term losses.

• Frozen withdrawals once large winnings occur.

• Identity theft through fake KYC processes.

• Legal risk if caught transacting with banned entities.

Gamblinghood’s user complaints section has documented over 6,000 such scam incidents in 2026 alone, many tied to offshore platforms using Telegram as their main recruitment hub.

Government Crackdown Efforts

The Ministry of Electronics and Information Technology (MeitY) and the Enforcement Directorate (ED) have ramped up efforts by freezing suspicious bank accounts and blocking illegal URLs.

However, without global cooperation, the root problem persists. Operators simply shift servers, launch new payment routes, and continue targeting Indian users under different names.

Gamblinghood projects that only 20% of illegal platforms face long-term disruption, while the remaining 80% adapt and return.

What Gamblinghood Recommends

To effectively curb illegal betting in India, Gamblinghood suggests:

1. Collaborative Regulation — a unified national gambling policy to replace fragmented state laws.

2. Crypto Monitoring Systems — use AI tools to trace blockchain-based gambling payments.

3. ISP-Level Firewalls — proactive blocking of mirror domains and proxy servers.

4. Public Awareness Campaigns — educating users about the dangers of illegal betting and promoting safe, regulated alternatives.

5. Faster Legal Channels — allowing agencies to freeze funds instantly and penalize promoters quickly.

Conclusion

Despite India’s strong anti-betting laws, illegal gambling websites continue to thrive in 2026 through innovation, anonymity, and exploitation of legal loopholes. These underground networks evolve faster than enforcement can react — making them one of the most persistent threats to the Indian digital economy.

The only way forward is through a balance of technology, regulation, and awareness. Gamblinghood emphasizes that players should always choose licensed platforms and avoid any site offering unrealistic returns or bypassing KYC.

In a world where digital money moves faster than the law, responsible gambling and awareness remain the strongest defenses.