Online gambling ‘no different from drugs’: Sikkim launches statewide crackdown

Sikkim authorities have launched a major crackdown on illegal online gaming networks after discovering that over 900 fraudulent websites were targeting residents across the state and beyond, with one frozen bank account alone containing Rs 32 crore in suspected gambling proceeds.

A joint operation between the Sikkim Police and the Directorate of State Lotteries has revealed the massive scale of illegal gambling operations that have been preying on vulnerable users through sophisticated online platforms. The investigation began following a complaint filed in July by Principal Director of Lotteries Pawan Awasthy, leading to the registration of Case No. 3 of 2025 under organised crime, cheating, and IT Act provisions.

DIG of Gangtok Range Tenzing Loden Lepcha revealed that investigators initially identified 72-74 illegal gaming websites operating through social media intermediaries like Facebook and YouTube. These platforms hosted highly objectionable content and lured users into making banking transactions with promises of massive returns.

"Online gambling is becoming an addiction. Families are suffering. We are treating this as seriously as drug abuse, and we will continue to act strongly against it," said DIG Lepcha during the press conference.

The investigation uncovered a complex web of operations where gambling sites registered domains abroad through companies like NameCheap and GoDaddy, then hosted their servers on platforms such as Amazon Web Services to evade direct enforcement action. When users accessed these platforms, they were prompted to deposit money through banking transactions, creating a trail that investigators could follow.

Police successfully blocked over 90 websites, including popular platforms such as "Khelo Bet," "Khelo 24 Bet," and "Khelo Match." However, the crackdown revealed the hydra-like nature of these operations – while 90 sites were shut down, approximately 900 new ones emerged almost immediately with slightly modified names.

This cat-and-mouse game forced authorities to shift their strategy from blocking websites to monitoring the financial infrastructure supporting these operations. By tracking money trails and freezing bank accounts linked to gambling activities, police achieved more significant results in disrupting the networks.

The human cost of these illegal operations extends far beyond financial losses. DIG Lepcha compared the addiction potential of online gambling to substance abuse, noting that "families are being ruined, people are getting addicted. This addiction is no different from drugs."

The investigation has uncovered cases where victims lost substantial sums, with one reported incident involving four individuals who each invested ₹8-9 lakh, contributing to total losses running into crores. Officials suspect the actual figures could be much higher as more victims come forward to report their losses.

These gambling networks have also served as gateways to more sophisticated financial crimes, pulling victims into cryptocurrency-based scams and multi-level marketing schemes that promise high returns but ultimately lead to devastating losses.

Sikkim has emerged as a leader among Indian states in tackling this growing menace. The state government and police have escalated their concerns to the Ministry of Home Affairs, which has acknowledged the seriousness of the issue and pledged support for the crackdown efforts.

Principal Director Pawan Awasthy emphasised that protecting Sikkim residents from financial exploitation remains the department's primary concern. He noted that these illegal gambling networks operate across India, warning that "unless strict measures are taken, more families will fall into debt and distress."

The authorities have implemented multi-layered enforcement strategies, including IP-level restrictions in Sikkim and parts of Bengal, along with GPS-based blocks to prevent access to betting applications in specific regions. When gambling-linked bank accounts were frozen, users began receiving notifications that these websites were not permitted in their regions.

The ongoing investigation continues to leverage banking trails and Know Your Customer (KYC) details to identify and take action against the masterminds behind these rackets. While the rapid reappearance of blocked websites remains a persistent challenge, the strategy of freezing bank accounts containing gambling proceeds has demonstrated measurable success in disrupting operations.

Sikkim's proactive approach has encouraged other states to examine similar cases within their jurisdictions, potentially leading to a coordinated national response to the illegal online gambling crisis that threatens families across India.