Illegal Online Gaming crackdown: DGGI blocks 357 sites, freezes 2,400 bank accounts

Prepend to the content

The Directorate General of Goods and Services Tax Intelligence (DGGI) has intensified its crackdown on offshore online gaming firms, blocking 357 illegal websites and freezing approximately 2,400 bank accounts. The Finance Ministry issued a warning to the public against engaging with these platforms, many of which are endorsed by Bollywood celebrities, cricketers, and social media influencers.

According to reports from the Finance Ministry and Business Standard, as cited by multiple sources, including official statements, around 700 offshore e-gaming companies are under investigation. These firms are evading Goods and Services Tax (GST) by failing to register, concealing taxable revenue, and bypassing tax obligations. The crackdown is being carried out in coordination with the Ministry of Electronics and Information Technology (MeitY) under Section 69 of the IT Act, 2000.

The investigations revealed that many of these entities process financial transactions through ‘mule’ bank accounts. So far, 166 such accounts have been blocked. Authorities suspect that funds collected through these accounts may be funneled into illicit activities, posing potential risks to national security.

In separate enforcement actions, authorities have attached approximately ₹126 crore. Some Indian nationals running offshore online gaming platforms, including Satguru Online Money Gaming Platform, Mahakaal Online Money Gaming Platform, and Abhi247 Online Money Gaming Platform, were also found to be using mule accounts to process payments from Indian customers. Three individuals linked to these platforms have been arrested, and further investigations are ongoing.

Under GST regulations, ‘Online Money Gaming’ is classified as a supply of ‘Goods’ and is subject to a 28% tax. Entities operating in this sector are legally required to register under GST. The government emphasized that non-compliance by foreign entities distorts fair competition, harms local businesses, and creates an unfair market.

Authorities have also highlighted concerns regarding the promotion of these illegal gaming platforms by celebrities and influencers. The Finance Ministry advised the public to remain cautious and avoid engaging with offshore online gaming firms to safeguard personal finances and uphold financial integrity.

With the upcoming Indian Premier League (IPL) season, enforcement actions against illicit gaming operations are expected to increase. The government urged individuals to use only regulated e-gaming platforms to avoid financial and legal risks.

The post Illegal Online Gaming crackdown: DGGI blocks 357 sites, freezes 2,400 bank accounts appeared first on G2G News.