Betting on the Lok Sabha Elections of 2024 reaches a record high

Undertaking an in-depth investigation, mFilterit, an organisation specialising in Open Source Intelligence and Digital Fraud Detection, discovered a complex network of offshore online gaming and betting platforms that are abusing India's payment systems to carry out illegal activities in connection with the ongoing Lok Sabha Elections. These foreign-registered platforms are not only violating Indian laws and tax rules, but they may also have an impact on democratic processes by offering bets relating to elections. Bets can be placed on seat-wise, state-wise, or party-wise results, with sums ranging from as little as Rs. 100 to as much as Rs. 10 lakh.

At the heart of this operation is the misuse of India’s Unified Payments Interface (UPI), a system widely acclaimed for its ease of use and broad adoption across Bharat. According to mFilterit’s report, these offshore sites cleverly manipulate UPI to route large sums of money via proxy or mule bank accounts, effectively masking the origins of these funds and complicating efforts to trace their origins.

Further complicating the financial trail, the report delineates how money collected via UPI is laundered through traditional and modern illicit methods. Hawala, an informal money transfer system beyond the reach of regulatory frameworks, features prominently in these operations along with cryptocurrencies, which add another layer of anonymity to the transactions.

Of particular concern is the expansion of these betting activities to include the outcomes of the ongoing Lok Sabha Elections. By offering odds on various political eventualities, these sites not only engage in illegal gambling but also pose a risk to the integrity of India’s electoral process. The potential influence on voter behavior and election outcomes through such platforms cannot be underestimated.