Govt blocks 357 offshore gaming sites, freezes ₹126 cr over tax, security concerns

The Directorate General of Goods and Services Tax Intelligence (DGGI) has blocked 357 offshore online gaming websites and frozen ₹126 crore in a crackdown on tax evasion and security concerns. In coordination with the Ministry of Electronics and Information Technology (MeitY), authorities have also blocked 2,400 bank accounts linked to these platforms. Around 700 additional offshore entities engaged in online betting and gambling are under investigation. The government stated that many of these platforms were operating without GST registration, concealing taxable pay-ins, and bypassing tax obligations.

Under the GST law, online money gaming is classified as a supply of goods and subject to a 28% tax. The DGGI revealed that foreign gaming operators were using "mule" bank accounts to process payments from Indian users, allowing them to evade taxes and regulatory scrutiny. "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 said. Authorities have blocked 166 mule bank accounts linked to these platforms and arrested three individuals involved in these operations.

Investigators have identified certain Indian nationals running offshore online gaming platforms, including Satguru Online Money Gaming, Mahakaal Online Money Gaming, and Abhi247. These operators used mule accounts to collect money from Indian customers. "Non-compliance by foreign entities distorts fair competition, harms local businesses, and skews the market," the ministry stated. It also warned that funds collected through these channels could be used for illicit activities, posing risks to financial security and national interests.

The finance ministry has flagged endorsements by Bollywood celebrities, cricketers, and social media influencers for offshore gaming platforms. "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 statement added.

With the upcoming IPL season, enforcement actions are expected to intensify to curb illegal gaming operations. In a recent operation, authorities blocked nearly 2,000 bank accounts and ₹4 crore linked to these platforms in coordination with the Indian Cyber Crime Coordination Centre (I4C) and the National Payments Corporation of India (NPCI). Additionally, 392 bank accounts linked to UPI IDs found on offshore gaming websites were put on debit freeze, with ₹122.05 crore provisionally attached. Authorities have reiterated their commitment to monitoring and regulating the sector to prevent financial fraud and tax evasion.