TLDR
- India’s Directorate General of GST Intelligence traced INR700 billion ($7.4 billion) in illegal online gaming and betting transactions over one financial year.
- The figure covers transactions identified, not confirmed tax evasion or revenue loss, which remains under investigation.
- The DGGI wants payment records to show which website directed each transaction, closing a gap used by proxy merchants.
- A 14-month probe tied the networks to possible money laundering, with a report sent to the Central Board of Indirect Taxes and Customs this month.
- India’s Online Gaming Act, 2025 already bans online money games, with rules in force since May 1, 2026.
India’s tax intelligence agency has traced INR700 billion, or about $7.4 billion, in illegal online gaming and betting transactions. The figure comes from the Directorate General of GST Intelligence and covers one financial year.
This number reflects transactions the agency identified. It does not represent operator revenue or confirmed tax evasion. The exact loss to the government is still being worked out, according to The Economic Times.
The finding came out of a 14-month investigation into illegal betting and gaming networks. Officials say the networks may have been used for money laundering. A report on the findings was sent to the Central Board of Indirect Taxes and Customs earlier this month.
Payment Records Proposal
To close gaps in tracking, the DGGI has proposed new payment-data rules. These would require payment records to show which website directed a user to make a transaction.
The agency also wants banks to disclose all accounts linked to a website’s goods and services tax registration. This would help investigators map how money moves between accounts.
Right now, banks and payment gateways only record the merchant that receives a payment. Illegal betting sites can route users through proxy merchant companies instead.
That setup forces investigators to work backward. They must separately prove a merchant collected funds on behalf of a gaming website before they can act.
It is not yet settled who would be responsible for recording this new data. Gaming platforms, payment gateways, aggregators, and banks are all still under discussion.
The proposal is currently in a consultation phase. This step exists because the new rules could place extra due-diligence work on banks and payment companies.
That consultation will determine how the requirements are applied. It will also decide which entities carry the compliance burden going forward.
Online Gaming Act In Force
India’s Promotion and Regulation of Online Gaming Act, 2025 already bans online money games. It also stops banks and payment systems from processing related transactions.
The rules supporting this law took effect on May 1, 2026. That gives the government a legal foundation for restricting these platforms and their payments.
The DGGI’s investigation and its new proposals build on this existing law. The agency is asking for more payment data to support enforcement under the Act.
Money laundering remains a central concern of the case. The 14-month probe looked at both the scale of the transactions and how the networks may have moved illicit funds.
The INR700 billion figure is not a final number. It marks transactions identified so far, not a completed assessment of evasion or loss.
Next steps depend on the consultation process now underway. Regulators still need to decide who verifies the originating website for each transaction.
The DGGI’s report gives authorities a starting point for these payment-data rules. Officials say the exact revenue loss to the government remains under investigation as the review continues.
