New Delhi, March 22, 2025 – The Indian government has blocked 357 offshore gaming platforms and frozen roughly ₹126 crore tied to them.
The Directorate General of Goods and Services Tax Intelligence (DGGI) is swelled by the Ministry of Electronics and Information Technology (MeitY).
Correspondingly, oversaw the operation to seek to halt tax evasion and to protect the public against the potential for financial fraud.
Overview of the Operation
The DGGI found around 700 offshore entities providing gaming services involving money to Indian users.
Utilizing registered and unregistered entities that did not disclose taxable transactions. In addition, they paid no tax wenders to entities that paid applicable taxes.
In an effort to disrupt the gaming services to Indian users, the DGGI blocked 357 websites and URLs, exercising powers under Section 69 of the Information Technology Act.
Additional Financial Measures
In addition to blocking the websites, the DGGI took aim at the banking network that supported the illegal platforms.
With the assistance of the Indian Cyber Crime Coordination Centre (I4C) and the National Payments Corporation of India (NPCI) banks were identified. Approximately, 2,400 accounts were frozen, along with nearly ₹126 crore.
The generalized aim is to dismantle the banking network that supported these platforms in bypassing Indian regulatory requirements.
Public Warning and Celebrity Promotion
In its warning to the public, the Finance Ministry has urged people not to engage in offshore online money gaming platforms.
Despite famous celebrities from Bollywood, cricket, and social media suggesting otherwise.
The advice that these offshore platforms are illegal, and emphasize that they pose significant risk to users financially.
The Ministry’s statement said, engaging in these platforms will significantly threaten your personal financial security.
Consequently, might facilitate activities that threaten financial integrity and national security.
Regulating framework and taxation
Under the Goods and Services Tax (GST) law, ‘Online Money Gaming’ is to be considered a supply of goods and be taxed at 28%.
An organization registering in this space has to comply with GST tax registration as their operation taxes will apply.
However, many of these offshore platforms have been found to skirt these jurisdictional obligations.
This elicited massive losses of revenues to the government. The recent instant action is an attempt to enforce compliance. Also, enable level playing fields for legitimate operators.
Technological Measures and Future Actions
The focus is on strengthening enforcement actions against illegal offshore online gaming platforms.
Hence, the DGGI has responded by utilizing technological instruments and data analytics.
The agency is committed to monitoring non-compliant platforms and taking enforcement action.
When necessary, to protect users and uphold the integrity of the financial system. The public is urged to be vigilant and report any suspicious gaming platforms to authorities.
Looking forward
In addition, the government’s targeting of illegal offshore gaming platforms augments its commitment to protect citizens.
Subsequently, to uphold the financial system’s integrity, whether it be by blocking access to these platforms or freezing funds.
Authorities want to deter illegal gaming activity and promote a safe online environment for users.
Users should only access online gaming platforms that comply with Indian laws and regulations to protect themselves and their financial security.
This decisive action reflects the government’s commitment to maintaining financial integrity and national security. For more updates on similar initiatives, visit our India News section.
