Over 357 betting and gaming sites banned: India’s GST crackdown
Indian tax authorities have blocked 357 websites of illegal offshore online gaming firms and attached about 2,400 bank accounts. The finance ministry, in a statement on 22 March, revealed that nearly 700 offshore gaming companies are under investigation by the Directorate General of Goods and Services Tax Intelligence (DGGI) for evading Goods and Services Tax (GST) by failing to register, concealing taxable pay-ins, and bypassing tax obligations.
700 offshore gaming firms under investigation
The DGGI has been monitoring offshore gaming platforms that allow Indian players to participate in online betting, gambling, and other money gaming activities. As per Indian GST laws, online money gaming is classified as a supply of goods and attracts a 28 percent tax. However, many foreign entities operate without registration, leading to massive tax evasion. The authorities have found that these companies avoid compliance by frequently changing domain names and using intermediary bank accounts to process transactions.
357 websites blocked and bank accounts frozen
In coordination with the Ministry of Electronics and Information Technology (MeitY), the DGGI has blocked 357 URLs of non-compliant offshore gaming platforms.
“So far, 357 websites/URLs of illegal/non-compliant offshore online money gaming entities have been blocked by the DGGI, in coordination with MeitY, under Section 69 of IT Act, 2000,” the finance ministry stated.
In another operation, authorities froze approximately 2,000 bank accounts and attached ₹4 crore linked to gaming platforms. A separate crackdown resulted in 392 bank accounts associated with Unified Payments Interface (UPI) transactions being put on debit freeze, with a total of ₹122.05 crore provisionally attached.
Mule accounts and arrests
Investigations revealed that several Indian nationals were running offshore online gaming platforms such as Satguru Online Money Gaming, Mahakaal Online Money Gaming, and Abhi247 Online Money Gaming. These individuals used mule bank accounts to collect payments from Indian customers, bypassing legal regulations. The DGGI has blocked 166 such accounts.
“Three such persons have been arrested till now and investigation against more such individuals is under progress,” the statement said.
Rising concerns over national security
Authorities warn that the operations of unregistered offshore gaming and gambling firms not only harm local businesses but also distort market competition. The use of mule accounts raises concerns over potential links to illicit activities that could pose risks to national security. Many of these platforms are promoted by bollywood celebrities, cricketers, and social media influencers.
“It has been observed that many bollywood celebrities and cricketers along with YouTube, WhatsApp, and Instagram influencers, are found endorsing these platforms,” finance ministry said in the statement. “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.”
Stronger enforcement ahead of IPL 2025
With the Indian Premier League (IPL) season approaching, enforcement agencies are preparing for stricter actions to curb illegal gaming activities. Authorities advise users to avoid unregulated offshore gaming platforms, as engaging with them could put personal finances at risk and indirectly support unlawful financial activities.
