Betting Apps Exposed: From Easy Money Trap to India’s Silent Killer

Dark Crime Diaries | Investigative Crime Report | August 2025

In September 2023, The Hindu reported the case of a 20-year-old engineering student from Andhra Pradesh who died by suicide after suffering heavy losses on a betting app.

According to police investigations and media reports, many such apps lured users through Telegram groups, starting with small bets of just ₹500 that soon spiraled into heavy losses. To keep playing, students often borrowed from friends, took instant loans, and submitted Aadhaar or PAN details for KYC documents that were later misused by scammers for blackmail in several cases.

The young man’s death shocked his community, but it was not an isolated tragedy. Across India, hundreds of students and professionals have been caught in the same cycle: harmless-looking bets leading to financial ruin, addiction, and, in too many cases, death.

We chose to cover this story because what looked like harmless online games turned out to be a vast criminal network operating inside every home with a smartphone.

How the Addiction Was Engineered

Betting apps weren’t just games; they were psychological traps designed for addiction.

At first, users almost always won. Algorithms ensured that the first few bets doubled or tripled the amount. This created excitement, a sense of “luck,” and most importantly, trust.

Soon after, the losses began. Push notifications constantly reminded users:

• “Your lucky chance is here!”
• “Deposit now for a bonus.”
• “Don’t miss today’s jackpot!”

For many, the addiction felt impossible to stop. Apps were linked with instant loan providers, which meant even when users ran out of money, they could borrow within minutes. What seemed like a harmless game quickly became a financial trap.

Counselors in Hyderabad and Bengaluru say calls to suicide prevention helplines have risen sharply. According to multiple media reports and helpline data, many of these calls come from teenagers and young men trapped in betting debts. In several cases, callers admitted losing between ₹50,000 and ₹2 lakh, and spoke of feeling their life was over.

The Criminal Syndicate Behind the Apps

Behind these apps was not just clever software; it was a well-organized criminal empire.

The biggest name was the Mahadev Online Book, run from Dubai by Sourabh Chandrakar and Ravi Uppal. From 2021 to 2024, it became India’s largest illegal betting network.

• The Enforcement Directorate found over ₹6,000 crore laundered through fake bank accounts and hawala operators.
• Thousands of small-town “agents” collected cash every day, distributing it into multiple accounts.
• Chandrakar’s wedding in Dubai in 2023 was so lavish, costing nearly ₹200 crore, that Bollywood stars performed, flown in on private jets.
• Political and police protection was bought with crores in bribes.

An ED official described the Mahadev syndicate as “a parallel banking system through hawala and shell accounts.”

The Human Cost: Families Shattered

Statistics tell only part of the story. The human cost is far greater.

Media reports across states show the devastating impact of betting apps on young lives:

• Andhra Pradesh, 2023 – The Hindu reported the suicide of a 20-year-old engineering student who suffered heavy losses on a betting app.
• Karnataka, 2024 – The Indian Express documented cases in Bengaluru where young software engineers ended their lives after debts mounted beyond recovery.
• Telangana, 2024 – Hindustan Times highlighted families pushed into financial ruin after children lost savings on fantasy cricket platforms.

Between 2023 and 2025, official police data shows Karnataka alone reported 32 suicides directly linked to betting debts. Telangana and Andhra Pradesh reported dozens more. Experts believe the true toll is higher, as many cases go unreported due to stigma and fear.

The Silence Before the Storm

For years, despite mounting deaths, little was done. Betting companies exploited loopholes, calling themselves “games of skill” instead of gambling. They used celebrity endorsements, famous cricketers, and Bollywood stars to make apps look respectable.

Families of victims felt abandoned. A mother from Vijayawada, who lost her son, said:
“I begged the police to act. They told me it was legal gaming. By the time action came, my son was gone.”

This silence only emboldened the syndicates.

The Government Strikes Back

By August 2025, the betting app crisis had reached a breaking point. On August 21, 2025, Parliament passed the Promotion and Regulation of Online Gaming Bill, 2025, India’s most sweeping crackdown on money-based online gaming to date.

Union IT & Communications Minister Ashwini Vaishnaw told the Lok Sabha:

“This is not just a matter of gaming. It is about protecting our youth, preventing financial ruin, and stopping the misuse of these platforms for money laundering and even threats to national security.”

For the first time, the government officially classified betting apps as a “social crisis”, echoing what families, counselors, and investigators had been warning for years.

The new law introduces some of the toughest measures India has ever taken against digital crime:

• Total ban on real-money betting and gambling apps.
• UPI and banking blocks, cutting off their financial lifelines.
• Ban on advertisements and celebrity endorsements, ending the glamourization of gambling.
• Central regulator, tasked with drawing a strict line between safe e-sports and harmful betting.
• Strict penalties: up to 3 years in jail and fines of ₹1 crore for violators.

The government argued that the crackdown was essential to protect families and prevent black money from flowing through syndicates like the Mahadev network.

But the move also shook India’s booming gaming industry. Fantasy sports platforms like Dream11 (valued at $8 billion) and Mobile Premier League (MPL) ($2.5 billion) suddenly found their business models under threat. Industry bodies warned of massive job losses, investor panic, and a chilling effect on India’s $3.6 billion gaming sector.

Still, for grieving families and cybercrime investigators, the message was clear: the state had finally acknowledged the scale of the problem, and action had begun.

But Crime Never Sleeps

Even as the ban came into force, criminals adapted.

• Apps reappeared as pirated APKs on Telegram and Discord, harder to trace.
• Some disguised themselves as “quiz” or “learning” apps.
• Payments shifted to cryptocurrency and offshore wallets.
• Many apps secretly carried spyware, stealing UPI PINs, contacts, and personal data.

“Illegal online betting firms act as channels for money laundering and terrorist financing.” – SASTRA (Security and Scientific Technical Research Association) report, quoted in Business Standard.

What Families Need to Know

The fight is not only legal, it is also social. Experts say families and youth must stay alert:

• Never trust apps promising “easy money.”
• Do not download unknown APKs from Telegram or WhatsApp.
• Never share Aadhaar/PAN with shady apps.
• Report apps at cybercrime.gov.in.
• If trapped, reach out helplines and counselors exist. Silence only deepens the danger, but support can save lives.

The Bigger Picture

The betting app crackdown is about more than gambling. It is about saving lives, protecting India’s economy, and breaking criminal syndicates. For years, these apps thrived on human weakness, on dreams of quick money, on fear of missing out, and on the shame of losing.

The government has finally drawn a line. Amit Shah’s strong words and the new law show a clear message: the state will not allow India’s youth to be consumed by gambling mafias.

“Cybercrime fraudsters involved in investment scams are laundering illicit money through online gambling platforms to evade police detection… fraudsters transfer scam proceeds to winners on gambling apps as a way to obscure the money trail.” The New Indian Express

For every parent who lost a child, for every student who never got a second chance, that war is deeply personal.

Sources

• Enforcement Directorate charge sheets on Mahadev Online Book (2023–25)
• Press Information Bureau (PIB) releases, August 2025
• Home Minister Amit Shah’s Parliament statement, August 6, 2025
• Police data from Karnataka, Telangana & Andhra Pradesh (2023–25)
• Media reports: The Hindu, Indian Express, Hindustan Times
• Counselor and victim family interviews (compiled 2024–25)
• This report is based on publicly available charge sheets, press statements, media coverage, and interviews compiled between 2023–25.