India's Directorate General of GST Intelligence traced $7.4 billion in illegal online betting and gaming transactions. The figure reflects identified payment flows, not operator revenue or the scale of tax evasion. The actual budget loss is still being determined, The Economic Times reports.
The results come from a 14-month investigation into illegal gambling networks used for money laundering. The report was submitted to the Central Board of Indirect Taxes and Customs earlier this month. DGGI recommended requiring payment systems to log the site through which a user made a transaction and disclose all bank accounts linked to a platform's GST registration. This would allow authorities to track accounts used for collection, transfers and layered fund distribution.
Currently banks and payment gateways register only the payment recipient. Illegal betting platforms direct users to proxy companies, forcing investigators to prove separately that a merchant was collecting funds for a gambling site. It remains undecided who will be responsible for collecting and storing the data — platforms, gateways, aggregators or banks. The method for verifying the originating site has not been determined either.
The proposals are under consultation because they may increase due diligence requirements for banks and payment companies. The Online Gaming Regulation Act of 2025 banned real-money gambling and required banks and payment systems to block related transactions. The rules took effect 1 May 2026.
