IPL 2025 puts UPI in crisis: How lakhs of crores of betting money could be behind recent outages?

The Indian Premier League (IPL) 2025 draws in millions of viewers every day. From high-octane run scores to chases, the tournament remains an extremely popular event for Indian cricket fans. However, a parallel surge in online betting and fantasy gaming this IPL season is likely exerting unprecedented pressure on India's digital payment infrastructure.

In a report from Bloomberg, experts cited that lakhs of crores of rupees are flowing through betting and fantasy sports apps, many of which are in UPI transactions.

The National Payments Corporation of India (NPCI), which oversees UPI, reports that the system now handles approximately USD 3 trillion annually, accounting for nearly half of all real-time digital transactions globally. However, the IPL season has amplified transaction volumes, particularly during matches, leading to significant strain on the system.

UPI Outages: A Nation Disrupted

Recent weeks have witnessed multiple UPI outages, leaving users unable to complete transactions. In recent days, a major disruption affected platforms like Google Pay and Paytm, with users reporting persistent failures even after official statements declared the issue resolved.

Downdetector data indicated that 83% of users faced transaction failures during peak outage periods. In major cities, these outages disrupted business activities, with merchants and customers alike facing transaction failures and delays.

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The Role of Fantasy and Betting Apps

With millions of users engaging in real-time wagers and fantasy contests linked to match outcomes, each game night sees a dramatic spike in micro-transactions routed through UPI. 

Most of these transactions, while low in individual value, accumulate to enormous daily volumes, creating bottlenecks in the payments infrastructure.

The core issue lies in the rapid-fire nature of betting transactions. Unlike conventional purchases, betting activities often involve high-frequency, low-latency fund transfers, particularly around events like tosses, wickets, or milestones.

The backend systems of many apps execute batch settlements and instant wallet top-ups, all depending on UPI APIs. This leads to transaction pile-ups during match hours, particularly in the evening peak slots when most IPL games are played.

Furthermore, many platforms use a complex network of intermediary accounts and wallets, some even offshore, to process these payments, increasing the risk of misuse and system overload. Even legitimate apps using rupee-denominated wallets are contributing to this surge due to a massive spike in the user base during IPL.

Despite the scale of the issue, regulatory clarity remains elusive. The Reserve Bank of India has flagged the stress caused by transactional surges, but enforcement mechanisms against digital overloads linked to betting remain limited.

Regulatory Challenges and the Road Ahead

The Reserve Bank of India (RBI) has expressed concerns over the resilience of digital payment systems amid increasing transaction volumes.

Meanwhile, banks are under pressure to upgrade their IT infrastructure to handle the surge, but the rapid growth of betting-related transactions presents ongoing challenges.

As the IPL season progresses, the intersection of sports, digital payments, and online betting continues to test the limits of India's financial infrastructure.