DGGI Blocks 357 Illegal E-Gaming Websites in Tax Evasion Crackdown
As part of its ongoing crackdown on the offshore illegal online gaming sector, the DGGI has blocked 357 websites and frozen 2400 bank accounts as stated by the Finance Ministry on Saturday, March 22, 2025.
The crackdown is focusing on offshore companies involved in the evasion of Goods and Services Tax (GST), not registering for business, and concealing pay-ins of the taxable amounts, especially in the online gaming industry as the Indian Premier League (IPL) 2025 season 2025 is nearing.
Government Action Against Offshore E-Gaming Entities
The DGGI, which has 700 offshore online gaming entities under its radar, has moved to block websites linked to tax evasion schemes. These companies operating from foreign jurisdictions, avoid GST compliance by not registering under the law and bypassing their tax obligations. According to the Finance Ministry, the authorities have now blocked 357 websites offering unregulated online money gaming services.
The crackdown extends to financial institutions, with 2,400 bank accounts linked to illegal operations being frozen. These accounts, many of which belong to entities operating through “mule” accounts, process transactions that evade detection. A total of 166 mule accounts have been blocked so far. Using such accounts facilitates tax evasion and creates risks to national security by enabling the funneling of funds into illegal activities.
Legal and Financial Implications of Illegal Online Gaming
The Indian GST laws categorize online money gaming operations as the supply of goods while imposing a 28% tax on these transactions. The investigation by DGGI uncovered that Indian nationals operated unlawful online gaming programs from locations outside of India. These individuals operated mule accounts to receive Indian player funds. As revealed by the investigation, Satguru, Mahakaal and Abhi247 operated as platforms that enabled money gaming activities.
According to the Finance Ministry, non-compliance risks become severe because these foreign entities disrupt competitive market fairness. These operators cause financial damage to local businesses since they act without regulatory oversight, which threatens national financial stability. Authorities have arrested three individuals for participating in illegal activities and investigations continue to detect more involved parties.
