Money laundering big threat to online gaming & digital economy: Report

New Delhi, PTI: The fastgrowing Indian online gaming sector is facing a significant threat from money laundering, necessitating urgent steps to ensure its sustained success and protect the country's robust digital economy, a report said on Thursday. The essential measures outlined in a report by the Digital India Foundation include forming a dedicated task force for illegal operators, creating a whitelist of legal operators, combating misleading advertisements, and incorporating principles of financial integrity and international cooperation.

Other critical measures include public awareness and providing education to help users make informed decisions and avoid platforms that engage in deceptive practices. A comprehensive assessment of in-game assets, financial institutions should deploy AI/ML-driven detection models, build strong investigative teams, implement robust programmes and take decisive actions to combat money mules, it said. The Indian Real Money Gaming (RMG) sector has become a key player in the global market with a Compound Annual Growth Rate (CAGR) of 28% from FY20 to FY23.