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The state of Tamil Nadu has finally clarified its stance, with the government introducing esports and free-to-play games such as Battlegrounds Mobile India (BGMI), FIFA, e-cricket, basketball, and online chess as part of the Chief Minister’s Trophy, scheduled for October 18. This initiative once again indicates challenging times ahead for Real Money Gaming (RMG) operators in the state.

N. Muruganandam, Chief Secretary of the Tamil Nadu government, had hinted at banning certain games and noted that online gaming addiction among children has grown, leading to harmful effects. Including esports in the CM's trophy clearly showcases Tamil Nadu government's plan to restrict pay to play games in the state. 

Storyboard18 was the first to report that the Tamil Nadu government is considering an Australia-like gaming policy, which would age-restrict social media and gaming platforms.

A spokesperson from Skyesports stated, “We are glad to have collaborated with the Tamil Nadu government to promote esports and free to play video games. We will begin calling for registrations next week. This will be free-to-play for all participants. The CM’s trophy is considered one of the premier state events in Tamil Nadu.”

With this initiative, the government has clearly sent a strong message that free-to-play video games are not viewed as a major threat. Gambling and betting platforms are already banned in the state, and the government now plans to impose restrictions on RMG operators. Failure to adhere to these restrictions will lead to the banning of websites and apps.

An RMG operator that Storyboard18 spoke to said, “It is now clear that the Tamil Nadu government will focus on RMG operators. We have taken a strong stand before, and we will seek legal recourse if any government policy is unconstitutional. It’s more of a wait-and-watch situation for us now.”

Recently, the Tamil Nadu Online Gaming Authority (TNOGA) also took a firm stance against gambling firms, initiating legal action against over 12 YouTubers, Instagram influencers, and a private firm for promoting online betting and gambling. If convicted under the Tamil Nadu Online Gaming Act, they could face fines ranging from five to ten lakh rupees and up to three years in prison.

Moreover, Tamil Nadu is set to introduce new regulations for online gaming, which may include daily time and spending limits. The Tamil Nadu Online Gaming Authority, established last year, has recommended that online gaming be banned between midnight and 5 a.m., with a daily play limit of four hours and each session restricted to two hours.

Under the proposed rules, players may be limited to spending no more than Rs 5,000 per day and Rs 20,000 per month on gaming platforms. Additionally, mandatory Aadhaar verification is expected to be introduced for all registrations on these platforms.

It’s important to note that in November 2023, the Madras High Court struck down the law banning online money games like rummy and poker in the state, declaring the law "unconstitutional."

A bench comprising Chief Justice S.V. Gangapurwala and Justice P.D. Audikesavalu stated that while the state government has the authority to create rules to limit the time spent on online games or to set age restrictions for both games of chance and skill, it can only ban games of chance, not games of skill.

The court further clarified that the Act could not be used to ban skill-based games like rummy and poker.

Esports get the green light, but RMG faces red flags in Tamil Nadu

With the festive season approaching, illegal betting and gambling platforms are aggressively advertising in India to acquire users. Despite the ban on advertisements of gambling and betting companies, B4U Music, one of India's leading music channels, aired advertisements of the betting and gambling company, Melbet.

On October 3, 2022, the Ministry of Information and Broadcasting issued an advisory to private satellite TV channels stating, “Betting and gambling are illegal activities in most parts of India. As per Paragraph 9 of the Guidelines for Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements 2022, under the Consumer Protection Act, 2019, since betting and gambling are illegal, advertisements for online offshore betting and gambling platforms are also illegal.”

The advisory further clarified, “In this context, it is important to note that according to the Advertising Code under the Cable TV Network Regulation Act, 1995, ads for betting platforms, being illegal activities, cannot be aired on TV channels.”

The Advertisement Standards Council of India (ASCI) has declined to comment on the issue.

Storyboard18 also reached out to B4U Television Network India Limited for a statement. The story will be updated with the company's response. 

A spokesperson from a real-money gaming company stated, “Despite advisories issued by the Ministry of Information and Broadcasting (MIB) and other government bodies banning the advertisement of betting and gambling companies, popular TV channels like B4U Music are violating the law by airing ads of notorious betting firms.”

The spokesperson added, “Melbet is one of the notorious platforms involved in money laundering and tax evasion in our country. The government should take stringent action to curb such activities.”

The All India Gaming Federation (AIGF) has now decided to escalate the issue to the government. Roland Landers, CEO of AIGF, said, “We have advocated against offshore gambling platforms since our inception and have always maintained a zero-tolerance policy toward any activity promoting illegal gambling or betting. We are committed to supporting the government and law enforcement agencies in enforcing these prohibitions.”

Landers continued, “We have an active compliance and monitoring system. By working closely with our members, industry partners, and other stakeholders, we track trends and regularly report instances of illegal activities, including ads from unregulated platforms. While we do not have direct regulatory authority over broadcasters, we actively engage with stakeholders to ensure compliance with advertising laws and guidelines.”

In March 2024, the Central Consumer Protection Authority (CCPA), under the Ministry of Consumer Affairs, issued a strict advisory banning the advertising, promotion, and endorsement of such illegal activities, including betting and gambling disguised as gaming.

Under the Consumer Protection Act of 2019, the CCPA prohibits the endorsement of illegal activities such as betting and gambling.

According to the 2021 Global Report on Corruption in Sport from the United Nations Office on Drugs and Crime (UNODC), the size of the illegal market for betting and gambling is estimated to be around $350 billion and $1.7 trillion, respectively.

Think Change Forum (TCF), an independent think tank, had released a report titled “State of the Betting and Gambling Industry in India.” According to the report, the offshore sports betting market receives an estimated $100 billion annually in deposits from India and has been growing at 20 percent per year in the last three years post-pandemic.

EXCLUSIVE: B4U to face music for airing illegal betting and gambling platform’s ads

The Real Money Gaming (RMG) operators have submitted data of over 540 illegal betting and gambling firms to Directorate General of GST Intelligence (DGGI) for operating in India. Recently, the DGGI in its report said that real-money online gaming companies are the largest tax evaders amounting to Rs 82,000 crore. 

According to DGGI, real money online gaming companies constituted 41 percent of the total Rs 2 lakh crore evasion uncovered this year. In its report, the DGGI mentioned that offshore companies include various online casinos based in tax havens like Malta, Cyprus, Curacao, and the British Virgin Islands remain uncooperative and seem to intentionally avoid tax compliance. While other entities are difficult to trace, as they operate through VPNs or cloud-based platforms. 

The RMG operators submitted list of over 540 illegal websites and apps since the implementation of 28 percent tax regime from October 1, 2023 till date. The notorious illegal offshore betting and gambling companies change their domain names and resume their business operations in India. The DGGI is now collaborating with foreign governments to block websites and apps operating from the foreign soil. 

A senior official from RMG industry on condition of anonymity said, “We keep tracking on activities of illegal betting and gambling websites and applications. Recently, we found that a new group of users including minors was part of a Telegram group placing bets on an illegal offshore betting website. We have reported the same to the DGGI and the group now has been shut.” 

The official said, “We collect IPs and links which are submitted to DGGI. They later send it to MeitY to block the domains. In certain cases we have also baited these illegal operators to communicate with us. They openly claim that we do not charge any GST or taxes on placing bets.” 

Centre blocked a total of 581 apps in December last year- 174 of which were betting and gambling apps, and 87 were loan lending apps. Some of the apps that were banned included Mahadev, Parimatch, Fairplay, 1XBET, Lotus365, Dafabet and Betwaysatt.

It is to be noted that the offshore sports betting market receives an estimated $100 billion annually in deposits from India and has been growing at 20 percent per year in the last three years post-pandemic, according to a Think Change Forum (TCF) report.

Despite best enforcement efforts, the illegal offshore betting industry (under the new GST regime) will continue to grow at 20 percent at the least, leading to a tax loss figure of Rs 6,72,205 crore by 2026, the report noted.


RMG players submit list of 540 illegal betting and gambling firms with DGGI

Illegal betting and gambling apps operating in India are now live streaming major sports events on their websites and apps. Some notorious betting apps, such as 1xbet, Reddy Anna, Khelo Yar, 96win, and Sat Sport, among others, allow users to watch live sports content while placing bets on their platforms. It's worth noting that multiple betting operators are offering the option to place bets on the ongoing Paris Olympics events.

Illegal betting and gambling apps divert viewers away from legitimate content platforms affecting their subscription models and advertising revenue. Recently, Disney Star India successfully dismantled a network of illegal streaming websites airing ICC T20 World Cup matches. The media conglomerate’s anti-piracy efforts led to the shutdown of platforms like magicwin.games and magicwin.com. The suspects were identified, and one of the accused was arrested in Ahmedabad. He was found receiving match feeds from a cable operator in Pakistan.

Explaining the notorious ways illegal betting apps pirate live sports content, Ritesh Bhatia, Founder of V4WEB Cybersecurity, a cybercrime investigations company, said, “Illegal streaming operations are increasingly sophisticated, employing a range of technical methods to steal content. A primary tactic is web scraping, using tools like Scrapy or Selenium to automatically extract live streams from legitimate platforms. Web pirates then embed these streams on their illicit platforms, effectively rebroadcasting copyrighted content without permission.

Bhatia further said, “Beyond scraping, these criminals also exploit vulnerabilities, intercept network data, and create botnets to distribute stolen content. Additionally, they set up their own streaming servers and leverage peer-to-peer networks to bypass traditional distribution channels.”

According to a 2024 report by Dataprot, India ranked third (9.5 billion) in terms of visits to pirate sites, The United States topped the list with 17.3 billion visits and Russia with 14.4 billion visits. The online piracy statistics show that over 50 percent of these recorded visits went to streaming sites. 

Suggesting measures to curb content piracy, Bhatia said, “To combat this, broadcasters and streaming platforms must implement a multifaceted approach. This includes fortifying digital rights management systems, employing advanced anti-scraping technologies, and developing robust content identification and tracking mechanisms. Furthermore, fostering collaboration with technology companies to refine detection algorithms and improve content protection is essential.”

With the ongoing Paris Olympics 2024, multiple illegal betting apps and websites are offering users the ability to place bets along with live streaming. In India, Viacom18 Sports has the broadcasting and streaming rights for the Paris Olympics 2024. Sports18 Network will broadcast the content on TV while JioCinema will stream live content for free. 

Viacom18, owning exclusive media rights for IPL events, faced infringement issues from rogue websites broadcasting the IPL matches illegally. In March 2024, Delhi HC passed a landmark judgment concerning the broadcast of the Indian Premier League (IPL), the Delhi High Court underscored the critical need for ‘Dynamic+’ injunctions as a robust legal response to combat digital piracy.

The ruling came in the favor of Viacom 18 Media Private Limited ordering immediate blocking measures by ISPs, DoT, and MeitY. The Court had allowed Viacom18 to dynamically add and block new rogue websites found infringing during the IPL event.

When asked if Viacom18 Sports is tackling the issue of content pilferage, Siddharth Sharma, Content Head of Viacom18 Sports, said, “We are mindful and cognizant, and there is an active strategy at work where we have partners who are constantly tracking how to prevent this pilferage, and whenever it happens, there is immediate action that we take.”

Sharma further said, “We have to look after our own assets and protect our investments. But also to ensure that the fans have the best experience, which is why we offer everything free and nothing is behind a paywall. The access barrier is being removed, and the audience can enjoy sports content. We also ensure that we look after our international syndication partners, so we always have the best in the world as partners with us who constantly track and strike out these nodes which indulge in content pilferage.”

In 2022, the Delhi High Court directed the Department of Technology (DOT) and the Ministry of Electronics and Information Technology (MEITY) to issue blocking orders against Pikashow, the rogue piracy app. Disney Star had earlier filed an FIR against TamilBlasters, Tamilrockers, and the PikaShow TV app for leaking television (TV), Over-The-Top (OTT), and film content on their platforms. According to the FIR filed, these platforms generated cumulative traffic of nearly 62 million. Moreover, PikaShow also streamed content from linear TV channels such as Star Plus, Star Gold, Star World, and Star Sports.

A senior industry leader from the broadcasting industry said, “Earlier, the media and entertainment industry was suffering huge losses because of pirated films. Now we are also witnessing increase in piracy of OTT content, TV shows, and sports content. Illegal betting apps are streaming live sports content on their websites and apps. Apps like PikaShow continue to offer live sports content.”

He further said, “These pirated content apps and websites are sponsored by betting apps such as 1xBet and others as they run their advertisements throughout their content. The industry needs a robust mechanism to tackle incidents of blatant piracy. The inability to stop such acts is a failure on the part of media houses and the government.”

Disney Star, Times Internet, and Cricbuzz are members of the International Broadcaster Coalition Against Piracy (IBCAP). IBCAP focuses on illegal websites and Set-Top Box (STB) services broadcasting members' sports media rights. IBCAP is responsible for an industry-leading deterrent effect on cricket piracy this past year.

Star Sports declined to comment on the issue of their content being pilfered via illegal betting and streaming websites and apps.

According to IBCAP, during IPL 2023, it disrupted nearly 9,000 streams over the course of the tournament, including more than 3.6 million views were disrupted on Facebook Live streams worldwide. During the Cricket World Cup tournament, the IBCAP lab removed more than 17,000 streams and disrupted more than 9.5 million views on Facebook Live streams worldwide.

The increasing menace of illegal betting apps streaming live sports in India not only affects broadcasters but also the entire sports industry as an ecosystem. It requires united efforts from multiple organizations globally to tackle content pilferage across multiple formats and genres. 

Illegal betting apps now a threat to sports broadcasters and live streaming platforms

Illegal gambling and betting apps have now adopted new modus operandi to acquire Indian users. These offshore gambling apps are enticing Indians by providing free pornographic content in exchange for downloading their illicit APK apps for smartphone users. Using chat messengers as a medium, these operators lure users to download the apps, allowing them to gamble and watch pornographic content simultaneously.

According to the 2021 Global Report on Corruption in Sport from the United Nations Office on Drugs and Crime (UNODC), the size of the illegal market for betting and gambling is estimated to be around $350 billion and $1.7 trillion, respectively.

Think Change Forum (TCF), an independent think tank, had released a report titled “State of the Betting and Gambling Industry in India.” According to the report, the offshore sports betting market receives an estimated $100 billion annually in deposits from India and has been growing at 20 percent per year in the last three years post-pandemic.

The report further observes that under the new GST regime, despite best enforcement efforts, the illegal offshore betting industry will continue to grow at 20% at the least, leading to a tax loss figure of Rs 6,72,205 crore by 2026.

Porn as freebie

Ritesh Bhatia, Founder of V4WEB Cybersecurity, a cybercrime investigations company, said, “Today betting apps are using unethical ways of luring Indians via pornographic content. Multiple groups on apps such as Telegram are used as a medium to provide free pornographic content to users. In return, users have to download APKs of illegal betting and gambling apps."

He further said, “The person gets to watch free porn and later starts betting on such illegal apps. The victim takes the bait of winning for a certain period and gambles more money, ending up losing every penny later.”

A report by Esya Centre titled “Offshore Online Betting and Gambling in India” highlights the accessibility of such illicit apps. Researchers behind the report initiated contact through the provided number on the website to gauge the ease of availing the service. The operator of VIP-Bet’s WhatsApp business account offered a monthly plan for 150 euros, promising inclusion in a Telegram group for betting after payment.

Bhatia says, “Money has been laundered in multiple digital formats and is being deposited in Indian bank accounts, which is then being laundered across the border. The government should implement stricter laws, and intermediaries such as messenger apps, banks, and digital payment apps must be vigilant and take proactive measures to stop such activities.”

According to the same report’s findings, Indian consumers have reportedly suffered significant losses due to similar operations. The risks are further exacerbated for minors, as many websites fail to conduct essential KYC or age verification checks. This lax approach enables minors to easily access these platforms, exposing them to inappropriate content and enticing them into unlawful activities.

Illegal betting is 10x bigger than RMG

Elaborating on the unethical operations of illegal betting apps in India, Siddharth Sharma, SVP of Business Strategy at Head Digital Works (A23), said, “Rogue operators siphon money out of our economy, leading to financial instability and fueling criminal activity. Moreover, their existence poses a risk to national security, as they act as channels for money laundering and terrorist financing.”

Sharma further said, “There’s no calculation or direct measurable effect that illegal betting apps have on our business. However, assuming they do not pay GST or deduct TDS, the illegal betting industry is easily ten times the size of the legitimate Real Money Gaming (RMG) sector in the country at the moment. Apart from revenue impact, the unethical and false marketing tactics used by these offshore players have a problematic effect on users in India.”

When asked if A23 has raised this issues with the government, Sharma said, “As a business and part of gaming federations like EGF and AIGF, we have actively engaged with relevant government bodies to address these persistent challenges. Measures such as a central regulatory framework to keep track of tax dues and compliance by all online gaming platforms, and the formation of a statutory regulatory body like SEBI for the online gaming sector to monitor financial practices and enable responsible gaming restrictions across applications, have been suggested to the involved stakeholders.”

Need government intervention

Roland Landers, CEO of the All India Gaming Federation, said, “Despite the ban, illegal apps continue to operate by constantly changing domain names. Regular tracking of these illegal websites clearly shows that they often resurface. These operators use aggressive tactics to mask their identities and frequently alter their operational details to evade detection. These apps do not pay TDS or GST to the government and divert users from legitimate Indian platforms.”

Landers further said, “The government should strengthen enforcement, establish a regulatory framework, spread consumer awareness, and include stakeholders to counter such issues.”

It should be noted that the growth of illegal betting apps in India poses severe financial and security risks. There is an urgent need for implementation of robust regulatory framework and vigilant monitoring to crackdown on illegal gambling and betting companies operating in India to safeguard the nation's economic and security interests.

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