The government has taken serious action against illegal offshore online money gaming platforms by blocking 357 websites and URLs. Additionally, around 700 other platforms are currently under investigation. This step is part of a larger crackdown led by the Directorate General of Goods and Services Tax Intelligence (DGGI) to tackle tax evasion and illegal activities in the online money gaming sector.
Why This Action Was Taken
The online gaming industry in India includes both domestic and foreign operators. According to the Ministry of Finance, several offshore gaming platforms were found evading Goods and Services Tax (GST). These platforms avoided registering under GST, concealed their earnings, and failed to pay taxes.
As per GST laws, online money gaming is treated as a supply of ‘Goods’ and is taxed at 28%. This means that any company operating in this sector must register under GST and pay the applicable tax on its earnings.
Blocking Illegal Websites and Bank Accounts
To prevent further tax evasion, the DGGI, in collaboration with the Ministry of Electronics and Information Technology (MeitY), blocked these gaming platforms under Section 69 of the Information Technology Act, 2000.
In addition to blocking websites, authorities have taken action against bank accounts connected to illegal gaming operations:
- Nearly 2,000 bank accounts and Rs 4 crore linked to gaming platforms have been blocked.
- 392 bank accounts linked to UPI IDs found on some gaming websites have also been frozen, and Rs 122.05 crore has been seized from these accounts.
Arrests and Investigations
The DGGI has also identified Indian nationals running illegal gaming platforms from outside India. So far, the agency has blocked 166 mule accounts (accounts used for illegal money transfers) linked to these platforms. Three people have already been arrested, and further investigations are ongoing.
Celebrities and Influencers Under Scrutiny
The government has also expressed concern about Bollywood celebrities, cricketers, and social media influencers (on platforms like YouTube, WhatsApp, and Instagram) who endorse these illegal platforms. The ministry warned the public to stay cautious and avoid engaging with offshore online gaming platforms, as doing so could harm their finances and indirectly support illegal activities that threaten financial stability and national security.
Final Advice to the Public
The government is urging people to stay away from illegal gaming platforms and carefully consider the risks. Playing on unauthorized platforms could put personal savings at risk and contribute to unlawful operations that undermine India’s financial system.
