Illegal online money gaming platforms face heat: 357 sites blocked, 700 under investigation

New Delhi: The Indian government has blocked 357 websites/URLs of illegal/non-compliant offshore online money gaming platforms, while an additional 700 such platforms are currently under investigation. These actions form part of an intensified crackdown by the Directorate General of Goods and Services Tax Intelligence (DGGI) against tax evasion in the online money gaming industry, which includes both domestic and foreign operators.

“It has been noticed that these entities are evading GST by failing to register, concealing taxable pay-ins, and bypassing tax obligations. So far, 357 websites/URLs of illegal/non-compliant offshore online money gaming entities have been blocked by the DGGI, in coordination with Ministry of Electronics and Information Technology (MeitY), under Section 69 of IT Act, 2000,” the Ministry of Finance said in a statement.

Around 700 offshore entities engaged in providing online money gaming, betting, and gambling services are currently under investigation by the DGGI.

Under the GST law, ‘Online Money Gaming’, being actionable claim, is classified as a supply of ‘Goods’ and is subject to a 28 per cent tax. Entities operating in this sector are required to register under GST.

In a recent crackdown on illegal gaming platforms, the DGGI, in collaboration with the Indian Cyber Crime Coordination Centre (I4C) and the National Payments Corporation of India (NPCI), blocked nearly 2,000 bank accounts used to collect money from participants. Approximately ₹4 crore was seized from these accounts.

In another action, 392 bank accounts connected to UPI IDs found on the websites of certain offshore entities were placed under a debit freeze. A total of ₹122.05 crore has been provisionally attached to these accounts, as per the Ministry's statement.

The DGGI has also taken action against a few Indian nationals operating online money gaming platforms from abroad. These operations led to the blocking of 166 'mule accounts' and further investigations are underway.

“DGGI has so far blocked 166 mule accounts linked with these platforms. Three such persons have been arrested till now and investigation against more such individuals is under progress,” the ministry informed.

“It has been observed that many Bollywood celebrities and cricketers along with YouTube, WhatsApp, and Instagram influencers, are found endorsing these platforms, and therefore the public is advised to remain cautious and not engage with offshore online money gaming platforms as it may jeopardise their personal finances and indirectly support activities that undermine financial integrity and national security,” the ministry advised.

IANS