Massive GST Raid: 357 Sites Blocked, Rs. 122 Cr Frozen By DGGI as IPL 2025 Kicks Off

The IPL season has begun, and so has the rise in illegal online sports betting and financial frauds linked to these gaming sites. Since India's online gambling market is expanding rapidly, officials are cracking down hard on illegal operators who don't follow GST rules. The Directorate General of Goods and Services Tax Intelligence (DGGI) is increasing its efforts to stop widespread revenue theft by closing down on offshore online gaming platforms.

Offshore Online Gaming Operators Under DGGI Scrutiny

Recent investigations reveal that approximately 700 offshore entities engaged in online money gaming, betting, and gambling are under scrutiny for evading the 28% GST on online gaming. Under Indian GST law, 'Online Money Gaming' is classified as an actionable claim and is thus taxable at 28%.

These offshore gaming platforms have been found guilty of operating without GST registration, hiding taxable pay-ins, and evading tax obligations. In response, the DGGI, in coordination with the Ministry of Electronics and Information Technology (MeitY), has blocked 357 illegal gaming websites and URLs under Section 69 of the IT Act, 2000.

Massive Crackdown on Illegal Online Gaming Transactions

To stop these illegal financial activities, DGGI has taken aggressive steps, including freezing bank accounts and seizing funds linked to these offshore gaming operators.

As per the press release released by the Press Bureau of India, nearly 2,000 bank accounts that were being used for collecting money from Indian participants have been blocked.

The report revealed that a total of Rs. 122.05 crore was provisionally attached in 392 bank accounts linked to UPI IDs found on gaming websites. In response to it, the Indian Cyber Crime Coordination Centre (I4C) and the National Payments Corporation of India (NPCI) have seized Rs. 4 crore from bank accounts used by illegal operators to prevent these platforms from exploiting financial loopholes.

DGGI has also uncovered instances where Indian nationals are operating online gaming platforms from outside India, catering to Indian users.

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Various gaming platforms have been found doing fraudulent activities using mule bank accounts (bank accounts used by scammers to move stolen money) to process the payments received in them. The websites found doing fraud were reportedly Satguru Online Money Gaming Platform, Mahakaal Online Money Gaming Platform, and Abhi247 Online Money Gaming Platform.

The government has blocked 166 mule accounts linked to these platforms along with arresting three people involved in it.
Influencers and Celebrities Promoting Illegal Online Gaming

The investigation has also revealed that Bollywood celebrities, cricketers, and social media influencers on platforms like YouTube, WhatsApp, and Instagram are promoting these offshore illegal betting platforms. The government urges the public to avoid engaging with such platforms as they pose financial risks and contribute to economic instability.

Why is the government cracking down on these gambling websites?

The main reason behind this recent crackdown is the rise of illegal online gaming in India, which has led to unfair competition and significant revenue losses for legal online gaming companies that comply with GST regulations. Additionally, these platforms pose risks such as:

Money laundering and tax evasion through hidden transactions. Not just that, it is also compromising the financial security of Indian users by operating without legal safeguards. Above everything else, illegal online gaming poses a serious threat to national security, as illegally earned funds can be redirected for illicit activities.