Why Did the Government Ban 1,524 Illegal Gambling Websites and Apps?
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Synopsis
In a significant move to combat illegal online gambling, the Indian government has banned 1,524 gambling websites and mobile applications since 2022. This action reflects the government's commitment to enforcing local regulations and ensuring user safety in the online gaming space. The new measures aim to curb the influence of offshore platforms operating unlawfully.
Key Takeaways
- 1,524 illegal gambling websites and apps banned.
- Mandatory registration for online gaming companies under the IGST Act.
- Government aims for a safe and accountable internet.
- New income tax rates introduced for online gaming.
- Support for states in enforcement and regulation.
New Delhi, July 23 (NationPress) The government has taken decisive action by prohibiting 1,524 illegal gambling websites and mobile applications from 2022 until June 2025, as reported to Parliament on Wednesday.
Minister of State for Electronics & IT, Jitin Prasada, disclosed in a written reply to the Lok Sabha that "From 2022 to June 2025, the government has issued 1,524 blocking orders concerning online betting, gambling, and gaming platforms."
This move is a response to the escalating concerns regarding offshore online gambling platforms that operate outside the bounds of Indian tax laws and local regulations.
The Directorate General of GST Intelligence (DGGI) has been empowered under the Information Technology (IT) Act and the Integrated Goods and Services Tax (IGST) Act to instruct intermediaries to block unregistered online gaming platforms, including foreign platforms that violate the IGST Act.
To legally operate in India, online gaming companies must register under the IGST Act, regardless of their international base. Those failing to comply risk being blocked, as online gaming is subject to a GST of 28%, according to the government.
"The Central government's policies aim to create an open, safe, trusted, and accountable internet for users," added the minister.
The blocked platforms frequently utilize digital advertising across platforms like Google and Meta to reach Indian consumers, sometimes employing surrogate advertising that disguises their true intent.
To clarify income tax levies in the online gaming sector, the government, via the Finance Act, 2023, has enacted a 30% income tax on net winnings in online games, effective from the assessment year 2024-25.
The minister also highlighted that the Centre provides support to states and Union Territories through advisories and financial aid under various schemes to enhance the capacity of their law enforcement agencies.
As specified in the Indian Constitution, "betting and gambling" falls under state jurisdiction according to entry 34 of the List II (State List) of the Seventh Schedule, allowing state legislations to define related offences. Hence, under Article 246 combined with Article 162, state legislatures possess the authority to legislate on betting and gambling matters.
The Directorate General of GST Intelligence Headquarters is designated as the appropriate government agency under the Information Technology Act, 2000, and the IGST Act to mandate the blocking of unregistered online money gaming platforms, including those operating offshore that violate the IGST Act.
Point of View
Our commitment remains steadfast with the nation’s interest. The government's actions against illegal gambling platforms underscore the importance of maintaining a regulated online environment, safeguarding users from unregulated risks, and ensuring adherence to tax laws. The ongoing dialogue about the role of state vs. central authority in gambling regulation is crucial for shaping future policies.
NationPress
24/07/2025
Frequently Asked Questions
How many illegal gambling websites have been banned in India?
The government has banned a total of 1,524 illegal gambling websites and mobile applications from 2022 to June 2025.
What are the penalties for unregistered online gaming platforms?
Unregistered online gaming platforms may face blocking under the Information Technology Act and the IGST Act if they operate illegally in India.
What tax applies to online gaming in India?
Online gaming is subject to a GST of 28%, and the new Finance Act, 2023, has introduced an income tax rate of 30% on net winnings.
Why is online gambling a concern for the Indian government?
The government is concerned about offshore gambling platforms operating without compliance to local laws and tax regulations, posing risks to users.
How does the government support law enforcement in this sector?
The government provides advisories and financial support to states and Union Territories for enhancing the capacity of their law enforcement agencies.
