Indian authorities are cracking down on illegal offshore online gaming platforms, having blocked 357 websites and frozen approximately 2,400 bank accounts, according to the Finance Ministry. The Directorate General of Goods and Services Tax Intelligence (DGGI) is investigating around 700 such companies for GST evasion, including failure to register, concealment of taxable income, and tax avoidance.
Investigations revealed that these offshore entities use “mule” bank accounts to process transactions, leading to the blocking of 166 such accounts. In separate operations, DGGI froze nearly ₹126 crore. The DGGI has also identified and acted against Indian nationals operating online gaming platforms from overseas, such as Satguru, Mahakaal, and Abhi247, arresting three individuals so far.
The Ministry emphasized that online money gaming is subject to a 28% GST under Indian law, and all operators must register. They warned the public against engaging with these platforms, particularly those endorsed by celebrities and influencers, as they often operate outside legal frameworks and pose risks to personal finances and national security.
The Ministry highlighted that non-compliant foreign entities disrupt fair competition and harm domestic businesses. They also noted the potential for funds processed through mule accounts to be used for illicit activities. With the upcoming IPL season, the Ministry stated that enforcement actions will be intensified to combat illegal gaming operations, urging the public to use only regulated e-gaming platforms.
