In a major crackdown on illegal offshore online gaming, the Directorate General of Goods and Services Tax Intelligence (DGGI) has blocked 357 websites/URLs and attached nearly 2,400 bank accounts, according to media reports.
The report mentions that the move comes amid growing concerns over tax evasion, financial fraud, and potential national security risks posed by unregulated gaming platforms.
According to the ministry, around 700 offshore e-gaming companies are under the DGGI’s scrutiny for evading Goods and Services Tax (GST) by failing to register, concealing taxable pay-ins, and bypassing tax obligations.
These firms reportedly operated through ‘mule’ bank accounts, making transactions difficult to trace. So far, 166 such accounts have been blocked as part of the enforcement drive.
In two separate cases, DGGI froze nearly Rs 126 crore, targeting individuals running online gaming platforms from outside India.
Investigators identified several platforms, including Satguru Online Money Gaming, Mahakaal Online Money Gaming, and Abhi247 Online Money Gaming, which were using mule accounts to collect money from Indian customers. Three individuals have been arrested, with further investigations underway.
Under GST law, ‘Online Money Gaming’ is classified as a supply of goods and is subject to 28% tax. Entities in this sector are legally required to register under GST, a compliance many offshore firms have been actively avoiding.
With the upcoming IPL season, the Finance Ministry warned that enforcement actions would intensify to curb illicit gaming operations. Officials urged the public to engage only with regulated e-gaming platforms, as foreign entities operating without compliance distort fair competition, harm local businesses, and threaten financial integrity.
Authorities also noted that many Bollywood celebrities, cricketers, and social media influencers have been found endorsing offshore gaming platforms, raising concerns about their role in promoting non-compliant businesses.
With tax evasion and illegal gaming platforms under heightened scrutiny, the government is expected to continue its crackdown to protect consumers and ensure a fair and regulated online gaming ecosystem in India.
