While we may always want to ensure our physical safety, the need to pay serious attention to our online security has become very apparent. And this is true not just in the Indian gaming ecosystem but also in other sectors. You don’t want to imagine yourself spending up to $4.88 billion, which IBM claims businesses will need to recover from cyberattacks.

And now that the Indian gaming industry is really growing, threat actors are drawn to the sector more because of the increased volumes of customer data. You may actually be surprised to discover that legal real-money gaming alone accounts for a daily player base of about 90 million. With such factors in mind, you can agree that online safety is not something to ignore. Continue reading to understand more reasons why this is so.

Why is online security important?

Do you actually know that just recently, in 2021, a report noted that more than three-quarters of Indian gamers encountered online attacks? So, seeing many game providers, even the newest online casinos, pay critical attention to their players’ safety should not surprise you at all. In fact, this can be a great way to appeal to new players and even retain them.

Remember, acquiring new players has never been as challenging as it is today. Some experts claim that you might spend at least five times more on getting new players than keeping existing ones. But thankfully, taking advantage of strategies like implementing strict online security measures can really add to your competitiveness.

Believe it or not, a study by Dark Reading notes that about 89% of gamers expect game developers and providers to give cybersecurity more attention. Imagine the number of players that you may lose by ignoring online safety. On the flip side, this statistic shows that companies that clearly adopt strict security measures have a great opportunity to appeal to larger audiences.

And as we noted earlier, the number of Indian online gamers is likely to increase in the coming days. With features like the ₹100 free casino on sign up dominating the market, providers are expected to keep innovating new ways of attracting and retaining players. But, unfortunately, the more the numbers, the more attractive the sector becomes to criminals. That is why you can’t afford to ignore this subject of online safety as a game provider.

A few examples of security issues

In its 2024 report, the Digital India Foundation (DIF) highlighted the need to address fraud, terrorism financing and money laundering in this sector. According to the institution, gaming companies need to improve their oversight and adopt more robust KYC practices, among other things.

Very much so, but there are illegal betting websites that have nowadays developed ingenious ways of getting around all these restrictions using geo-blockers, mirror sites, and VPNs. They would really also fool people with fake branding and unrealistic promises, only to lure them into their traps.

The report further noted an increased use of crypto to facilitate money laundering. Remember, crypto is decentralized, which means there’s no centralized authority to monitor or control transactions. As if that were not enough, the ability to transact and convert in-game assets into real-world value contributes significantly to the rising levels of money laundering and fraud.

In another scenario, the report of the Security and Scientific Technical Research Association (SASTRA) in Rashtriya Raksha University confirmed that illegal sites and unsafe online environments threaten India’s national security. This is by far not everything- can you even begin to grasp the level countries lose to as much as $100 billion a year in illegal betting? If statistics should ever raise your eyebrows, then it must have been for a country like India, which employs close to 100,000 in the gaming sector.

The Government has not been left behind

Well, just because rising online threats have affected India’s gaming sector does not mean that the government has done nothing to remedy the situation. The Prevention of Gambling Act of 1867 restricted all activities relating to gambling; over the years, different states have amended this act and followed up with their own individual acts.

About two years ago, Tamil Nadu established the Tamil Nadu Prohibition of Online Gambling and Regulation of Online Games Act, 2022, which helped define games of chance and restricted them as well. Alongside the act was an Online Game Authority to ensure its implementation.

Just a few years before the Nadu Act, the Sikkim Online Gaming Act of 2008 was amended in 2018, requiring every player to verify their identity using photographs. Other more recent developments included the 2023 updates of IT rules by the Ministry of Electronics and Information Technology, where gaming platforms would be regarded as intermediaries.

While these efforts go a long way to protect users, more needs to be done. Some experts recommend the following:

  • The government should establish a task force dedicated to addressing the challenges of illegal igaming
  • The government to provide a white list of all approved game providers – both local and international
  • The government should increase efforts to detect and block illegitimate providers
  • More user education campaigns about fraudulent activities

Indeed, online security cannot be disregarded. It impacts almost everyone - individual players, game providers or even the government itself. And it is no different in India. With predictions of a spurt in cyber-attacks in the coming days, it is becoming increasingly clear how these stakeholders need to come together for safe online practices.