India traced nearly INR700 billion, around US$7.4 billion, in transactions linked to illegal betting and online gaming networks, as part of an approximately 14-month investigation led by the Directorate General of GST Intelligence (DGGI), which is now proposing new rules to identify the website originating each payment and connect it with merchants, gateways and bank accounts.
The proposal, submitted to the Central Board of Indirect Taxes and Customs (CBIC) and currently under review by the Department of Revenue, aims to prevent illegal operators from disguising payments behind companies that appear unrelated to gambling. The DGGI, headed by S. Thirunavukkarasu, wants payment tracing to reconstruct the full chain: website, merchant, receiving account and subsequent destination of the funds.
S. Thirunavukkarasu
The CBIC has been chaired by Vivek Chaturvedi since December 1, 2025, while the Department of Revenue is headed by Arvind Shrivastava. Authorities have not yet quantified how much GST was evaded within the US$7.4 billion figure, which represents transaction volume rather than GGR or tax losses.
Rahul Navin
The crackdown is unfolding alongside a separate Enforcement Directorate (ED) investigation into Parimatch.com. On September 2, 2026, the Mumbai Zonal Office searched 12 locations; five in Maharashtra, four in Delhi-NCR, two in Rajasthan and one in Gujarat, under the Prevention of Money Laundering Act, 2002.
Ashwini Vaishnaw
The ED, headed by Rahul Navin, is investigating a scheme that allegedly moved more than INR30 billion (Rs3,000 crore, around US$317.7 million) in one year, using mule accounts, payment gateways, Chartered Accountants, Company Secretaries, cash-management agents, Banking Correspondents, Grahak Seva Kendras, UPI and alleged hawala channels. The agency had already searched 17 locations on May 26, 2026, seizing approximately Rs1.56 crore, including Rs1.2 crore in cash, and freezing another Rs3.8 crore. An earlier operation on August 12, 2025 had frozen around Rs110 crore.
The tougher approach is also backed by the Promotion and Regulation of Online Gaming Act, 2025, passed in August 2025, and its rules in force since May 1, 2026, which prohibit online money games and their payments. The framework is overseen by MeitY, led by Ashwini Vaishnaw, together with the Online Gaming Authority of India.
