Why in news
A report by the Digital India Foundation (DIF) highlights money laundering as a major threat to India's online gaming sector.
It recommends government actions to improve the integrity and success of this industry.
Key Points of the Report
The Indian real money gaming sector has seen rapid growth, with revenue expected to reach $7.5 billion in five years.
Money laundering and cybercrime through international betting sites are significant concerns.
The report calls for a whitelist of compliant gaming companies and stricter regulations.
Challenges to Sector
Major challenges include financial integrity, cybersecurity, and user protection.
The illegal betting market in India attracts over $100 billion annually.
Many illegal platforms operate using VPNs and mirror sites, complicating enforcement efforts.
Risk-mitigation Steps
Establish a dedicated taskforce to recommend policy measures.
Create a whitelist of legal online gaming operators, ensuring payment gateways only serve these companies.
Collaborate with banks to block transactions to illegal operators and conduct public awareness campaigns.
Propose a regulatory authority to clarify legal vs. illegal gaming activities and enforce financial integrity principles.
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