Startup Originals Team
In a decisive move to tighten oversight of the online gaming sector, the Director General of GST Intelligence (DGCI), operating under India’s Department of Revenue, has issued takedown notices to Google for six online gambling platforms. These platforms, accused of operating without registering in India and evading the Integrated Goods and Services Tax (IGST), represent the latest focus in the government’s crackdown on illegal offshore betting and gaming activities.
The Six Platforms Under Fire
The entities flagged for removal include:
- MGM91.com
- Shakunimama.com
- Khelomama.com
- 247majestic.com
- Redgames1.com
- Karabet.in
Upon investigation, the DGCI found these websites offer a range of online games, from classic gambling fare like roulette and blackjack to popular Indian card games such as teen patti. Importantly, they operate via websites and mobile apps, accepting payments from Indian users through UPI, wallets, and net banking—without proper taxpayer registration or payment of GST.
Legal Basis for the Block: Tax and IT Laws Collide
The notices to Google, sent on August 1, 2025, are rooted in a combination of laws:
- Section 79(3)(b) of the Information Technology Act
- Section 3(1)(d) of the IT Rules, 2021
- Section 14A(3) of the IGST Act, 2017
DGCI cited “security of the state” as part of the rationale for demanding a block. As per the takedown notice, the platforms qualify as providers of “online money gaming services” to Indian citizens, and are therefore liable to pay IGST under section 14(a)(1) of the IGST Act. Failure to register and pay IGST makes these sites legally subject to blocking-mandated to occur within 36 hours of notice.
Where Things Stand: Enforcement and Evasion
Despite the order, reports on August 10 indicated that the targeted sites remained accessible, and Google had yet to publicly comment. Efforts to contact the gaming entities were unsuccessful. The situation highlights the persistent difficulty regulators face when confronting offshore companies that frequently change domains to evade bans and continue operating in India.
Why GST Applies and the Ongoing Tax Dispute
This crackdown comes amid heightened debate surrounding taxation of online gaming in India. The central government has clarified that a 28% GST is applicable on the “full face value of bets” placed on online gaming platforms-regardless of whether the games are of skill or chance. This move, first announced in October 2023, sharply escalates the industry’s tax liability and continues to be challenged by gaming companies, who argue for taxation only on platform fees rather than total bet value.
Broader Action: Scale of Enforcement
The six websites are just the tip of the iceberg. In recent months, the government has blocked over 1,500 offshore gaming sites for failing to register and pay GST, issued massive tax notices to evaders, and seized bank accounts linked to these illegal platforms. The enforcement extends to freezing payment gateways, targeting both Indian and foreign operators, and even warning against endorsements by celebrities and influencers of unregistered gaming brands.
Conclusion: The Game is Changing for Online Gambling in India
India’s crackdown sends a clear message: gaming platforms serving Indian users, whether hosted within the country or offshore, must comply with tax laws and register with GST authorities. Continued non-compliance not only jeopardizes operators but places players’ finances and data at risk. As regulatory actions intensify, platforms and users alike must adapt to a stricter, more transparent digital gaming environment.
