96% users engage in real money gaming in Telangana despite knowing it's illegal: Study

Hyderabad: A first-of-its-kind study survey on consumers indulging in real money games in Telangana had shown 96 per cent of users know real money gaming is illegal in the state, yet still participate in online sports betting and casino betting, with 87 per cent playing daily.

Making quick money (97 per cent) followed by entertainment (61 per cent), are the major motivators for betting. In 2017, Telangana became the first Indian state to ban all forms of online real money gaming including games of skill like rummy, fantasy sports, poker as well as online gambling and betting. The ban was enforced via amendments to the Telangana Gaming Act. Punishment includes fines and jail time, even for first-time offenders.

A new report from Delhi-based civil society group Public Response Against Helplessness and Action for Redressal (PRAHAR) has uncovered the persistent rise of offshore online sports betting and casino platforms in Telangana despite a sweeping state-wide ban on all kinds of online real-money platforms.

The study revealed how sports betting and casino operators, most of them foreign offshore entities, continue to engage users directly through aggressive digital marketing, celebrity endorsements, and encrypted platforms, circumventing enforcement and raising critical threats to digital sovereignty and public safety.

The study titled Click. Bet. Repeat: Consumer Survey on Forces Driving Online Betting and Gambling in Telangana, is based on a comprehensive field study of 2,671 respondents who indulge in real money gaming.

It uncovered how foreign betting operators target Indian users through online ads, YouTube videos, Telegram groups, and meme pages, often using local influencers to add legitimacy. What was hailed as a bold move has, in reality, created the perfect storm for offshore sports betting and casino to thrive unchecked. The study further revealed that 89 per cent report that they are able to do online sports betting and casino betting with almost no restrictions despite the ban. Platforms of choice, named by 92 per cent of players, are offshore sports betting and casino platforms, signifying that the ban has only curtailed domestic real-money games in Telangana. The most popular ways offshore sports betting and casino betting platforms recruit customers are social media (59 per cent) and direct marketing through SMS, WhatsApp, and calls (35 per cent).

“Telangana led the way in 2017 with a blanket ban on all online real-money plays skill or chance without even drawing a line between legal and illegal play. What was hailed as a bold move has, in reality, created the perfect storm for offshore sports betting and casino to thrive unchecked. Eight years on, the evidence is undeniable that the ban has failed. Instead of protecting citizens, it has driven domestic operators out and handed the market on a silver platter to offshore betting syndicates. This has left users more vulnerable than ever. The newly formed SIT has its work cut out—but let’s be clear: more bans and crackdowns won’t solve what is now a deep-rooted menace undermining national security,” said PRAHAR President & National Convenor, Abhay Raj Mishra.

For the study PRAHAR teams gathered preliminary insights through unstructured discussions to help build a structured questionnaire.

The study had also shown that educated people who are either graduates or postgraduates represent 50 per cent of the group, with only 8 per cent being winning stories that fuel perception of success. 86.7 per cent of users said their decision to join was influenced by hearing about huge wins by others, reinforcing a belief that “if they can win, so can I”. Interestingly women at 22 per cent are not insignificant participants.