A recent report warns that overly strict gambling regulations across Asia could be doing more harm than good. According to From Regulation to Risk: Illegal Markets and the Inadvertent Growth of Gambling Harm by Over Regulation of Legal Markets, authored by Martin Purbrick, chairperson of the IFHA Council on Anti-Illegal Betting and Related Crime, tightening the screws on licensed operators is inadvertently pushing bettors toward unregulated markets dominated by organised crime. The solution, Purbrick argues, isn’t harsher rules—it’s creating effective, balanced, and credible legal frameworks that give players safe, regulated alternatives such as an Anjouan Gambling License.
The Dangers of the Underground Market
The Covid-19 pandemic accelerated the rise of illicit gambling. With casinos shuttered and sporting events suspended, millions turned to online betting platforms. Licensed operators were often constrained by strict regulatory limits, while illegal platforms adapted with speed, offering wider product menus free from oversight or consumer protections. The result? Faster growth for illegal betting than for licensed markets, with vulnerable groups—minors, high spenders, and those at risk of gambling disorder—bearing the brunt of the harm.
Asia’s Illegal Betting Boom
The report highlights how restrictive legal frameworks in Asia’s most populous countries have allowed unregulated platforms to flourish:
- India: With betting on cricket largely outlawed, illegal gambling deposits are estimated at nearly $100 billion annually.
- China: Despite nearly $99 billion in state-run lottery sales, addiction rates of 2.5–4% point to an immense underground market.
- Indonesia: A 2024 government task force found that 3.7 million citizens wagered more than $20 billion illegally.
- Bangladesh and Pakistan: Despite bans and website blocks, homegrown platforms continue to thrive, leading experts to warn of a “silent epidemic.”
The conclusion is stark: in countries where legal options are severely restricted or heavily overtaxed, illegal markets dominate—and consumer harm rises.
Sports Betting Versus Online Casinos
Purbrick’s analysis also distinguishes between gambling types. Sports betting and horse racing, being slower-paced and often skill-based, carry far less risk of addiction than fast, repetitive formats like online slots or roulette. Research from Sweden, Australia, and Finland confirms that electronic gambling machines pose the highest danger. The report recommends differentiated tax structures: lower levies for sports betting and racing, higher for online casino games. Over-taxation across the board, it warns, only drives players to illicit sites while cutting government revenues.
The Case for Balanced Regulation
Governments do have a responsibility to mitigate gambling harm. But poorly calibrated rules can be counterproductive. As Purbrick notes, “An effective legal betting market is critical. If consumer demand is not satisfied, people will inevitably turn to illegal markets where the risk of harm is far greater.” The call is for a balanced approach—one that allows legal operators to remain competitive while embedding responsible gaming protections.
Licensing as the Solution
The lesson for entrepreneurs and regulators alike is clear: when markets are regulated effectively, consumer demand is satisfied, tax revenues grow, and player protection improves. Licensing frameworks such as the Anjouan Gambling License exemplify this balance. They offer a streamlined, cost-effective route for operators to launch online casinos, sportsbooks, and esports platforms while meeting compliance requirements and safeguarding players. Unlike restrictive regimes that inadvertently push punters into the shadows, a trusted licence provides the legitimacy and credibility to compete globally—without sacrificing consumer safety.
Summary
Over-regulation may appear protective, but in practice it hands control to unregulated operators who exploit vulnerable consumers. Balanced frameworks—backed by credible licensing—offer the safer, smarter alternative. For businesses aiming to enter this lucrative industry, and for regulators striving to protect citizens, the path forward is the same: build accessible, well-regulated markets that keep betting safe, legal, and transparent. That begins with the right licence, and for many, the Anjouan Gambling License provides exactly that.