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.
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