India's Directorate General of GST Intelligence (DGGI) has uncovered INR 700 billion ($7.4 billion) in illegal online betting transactions following a 14-month money laundering probe covering a single financial year.
Key Regulatory Proposals
- Source Website Tracking: Payment processors must record and verify the specific website directing each payment transaction.
- Bank Account Disclosure: Gaming platforms must declare all bank accounts linked to their GST registration to eliminate proxy merchant accounts.
- Network Mapping: Mandating strict payment-data requirements to expose networks used to receive, transfer, or layer illicit gambling funds.
Legal Framework
The investigation operates under the Promotion and Regulation of Online Gaming Act, 2025, whose implementation rules took effect on May 1, 2026. The law bans real-money online games and prohibits banks from processing related transactions.
Government consultations are currently underway with banks and payment gateways to establish compliance rules and verification standards.
