Ahead Of IPL, 700 Offshore Online Gaming Entities Under Scanner

Ahead of the start of the Indian Premier League (IPL), the Directorate General of GST Intelligence (DGGI) has intensified its scrutiny of offshore online gaming entities that offer betting.

The DGGI is a law enforcement agency that detects GST evasion.

“Given the IPL is going to kickoff, a lot of offshore applications offering illegal betting are active. Since they are registered abroad, they defy Indian laws and operate without paying GST,” ET quoted a senior government official as saying.

As per the report, about 700 offshore entities involved in online money gaming, betting or gambling are under the department’s scanner.

The DGGI, in coordination with the Ministry of Electronics and Information Technology (MeitY), has so far blocked 357 websites of offshore online money gaming entities under the Section 69 of IT Act, 2000, it added.

Crackdown On Offshore Platforms: The Centre has stepped up its vigil against offshore platforms involved in online gaming and betting over the last few years. 

The Enforcement Directorate (ED) has also been probing various offline gambling platforms, many of which are involved in remitting and round-tripping funds. In December, the government said that it was probing 642 offshore gaming, betting, and gambling entities for potential tax evasion. 

Earlier this week, the Centre told the Parliament that it issued orders to digital intermediaries to block 1,298 online gambling websites and apps between 2022 and 2024. 

Recently, Telangana’s Cyberabad police also filed an FIR against 25 individuals, including Tollywood actors and social media influencers, for allegedly promoting illegal betting, gambling and casino apps.

The Rise Of Offshore Gaming Platforms: While betting and gambling is prohibited in a majority of regions in the country, online money gaming is permitted in most states.

However, in 2023, the GST Council imposed a 28% GST on the amount being paid at the entry level for online gaming. This has led to the rise in offshore online gaming platforms as they don’t deduct tax and often escape scrutiny. Many of these platforms also offer betting and gambling.

Last year, All India Gaming Federation’s CEO Roland Landers said that offshore illegal betting platforms were costing the national exchequer $2.5 Bn in GST revenue every year.

Gaming and betting platforms get the largest number of users during marquee tournaments like the IPL and ICC events. This is the reason behind the increased scrutiny of these platforms as the IPL kicks off today evening.