In a significant move to combat illegal financial activities and protect national security, the Indian government’s finance ministry has intensified its crackdown on offshore online money gaming platforms. The Directorate General of Goods and Services Tax Intelligence (DGGI), the tax enforcement agency, recently blocked 357 illegal offshore gaming entities, froze assets worth ₹126 crore, and secured 2,400 bank accounts suspected of facilitating these unauthorized operations.
The Role of Celebrities in Promoting Offshore Gaming Platforms
Alarmingly, many Bollywood actors, cricketers, and social media influencers, including those on YouTube, WhatsApp, and Instagram, have been found endorsing these offshore online money gaming platforms. The government’s warning urges the public to exercise caution, emphasizing that engaging with these unregulated platforms could jeopardize personal finances and potentially support activities that undermine the nation’s financial integrity and security.
The finance ministry’s statement highlighted the increased vigilance during the Indian Premier League (IPL) season, a time when online gaming activity tends to surge. Enforcement actions will be more stringent to curb illicit gaming operations and ensure responsible gaming practices among citizens.
The Modus Operandi of Illegal Platforms
The DGGI’s investigation has revealed that not only foreign entities but also Indian nationals operating from abroad are running online money gaming platforms aimed at Indian customers. Notable platforms like Satguru Online Money Gaming Platform, Mahakaal Online Money Gaming Platform, and Abhi247 Online Money Gaming Platform have come under scrutiny for using ‘mule’ bank accounts to collect money from unsuspecting Indian participants.
So far, 166 mule accounts linked to these platforms have been blocked, and three individuals have been arrested. Investigations are ongoing to identify more perpetrators involved in this illicit network.
Legal Implications and Tax Evasion
Under the Goods and Services Tax (GST) law, online money gaming is classified as a supply of ‘Goods’ and subjected to a 28% tax. However, around 700 offshore entities engaged in gaming, betting, and gambling are under investigation for tax evasion. These entities allegedly avoid registration, conceal taxable pay-ins, and exploit legal loopholes to bypass their tax obligations.
To counteract these practices, the DGGI has blocked 357 illegal websites and URLs with the cooperation of the Ministry of Electronics and Information Technology (MeitY) under Section 69 of the IT Act, 2000. In a coordinated effort with the I4C and the National Payments Corporation of India (NPCI), the DGGI froze nearly 2,000 bank accounts and seized approximately ₹4 crore.
Protecting National Security and Financial Integrity
The ramifications of these offshore online money gaming platforms extend beyond financial losses. Funds funneled through mule accounts could be redirected into illicit activities, posing a severe threat to national security. Non-compliance by foreign entities also disrupts fair competition, harming local businesses and distorting the market.
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