India’s Directorate General of GST Intelligence has proposed changes to payment record-keeping to trace funds linked to illegal online gaming and betting, after a 14-month investigation identified INR 700 billion ($7.4 billion) in associated transactions in a single financial year. The proposals would require payment records to identify the website that directed a transaction and mandate disclosure of bank accounts tied to GST registrations, though questions over responsibility and verification remain unresolved.
India is examining whether payment records should carry more information about the websites behind transactions linked to illegal online gaming and betting, Casino News Daily reported.
The proposal comes from the Directorate General of GST Intelligence (DGGI), which wants investigators to have a clearer way to connect websites with merchants and financial accounts. Under the suggested changes, payment records would identify the website that sent or directed a user to make a transaction. Authorities also want disclosure of every bank account associated with a website’s goods and services tax registration.
The recommendations emerged after a 14-month DGGI investigation identified INR 700 billion ($7.4 billion) in transactions associated with illegal online gaming and betting networks during one financial year. That figure covers transactions found during the investigation. It does not represent confirmed operator earnings, tax evasion, or government revenue losses. Authorities are still investigating the financial impact.
Proxy Merchants Complicate the Transaction Trail
The proposed changes target a gap authorities encounter when examining gambling-related payments. Banks and payment gateways currently record information about the merchant receiving a transaction. Illegal betting websites can direct users to proxy merchant businesses, making it harder to establish the relationship between the website and the payment recipient.
Adding the originating or directing website to the payment record could give investigators another data point when following funds through merchants and bank accounts. Disclosure of accounts linked to GST registrations could serve a similar purpose, providing more information about accounts potentially involved in receiving or transferring money tied to illegal gaming operations.
The DGGI has yet to define who would be responsible for creating and keeping these records. Gaming platforms could have a role, while responsibilities could also fall to payment gateways, aggregators, or banks.
Verification presents another unresolved issue. Any final framework would need a method for confirming that the website recorded as the source of a payment is actually the website that initiated or directed the transaction.
“Authorities have yet to determine which entities would collect and maintain the additional information,” the report stated.
For that reason, the proposals remain under consultation. The process will consider how companies would collect and retain the information, along with how authorities would access the records. The requirements could also create additional due-diligence responsibilities for payment providers and banks if officials decide to proceed. The DGGI’s investigation also considered whether illegal betting and gaming networks could facilitate money laundering and other illicit financial activity.
Payment Proposal Follows Wider Online Gaming Restrictions
The discussion is taking place within a significantly changed legal environment for online money gaming in India. The Promotion and Regulation of Online Gaming Act, 2025 introduced a prohibition on online money games and prevents banks and payment systems from processing transactions connected with those games. Supporting rules took effect on May 1, 2026.
The framework does not distinguish online money games by whether they involve skill or chance. It also covers advertising and payment facilitation associated with prohibited games.
If adopted, the DGGI recommendations would give investigators additional transaction information while those broader restrictions remain in force. Authorities could potentially use records identifying originating websites alongside information about merchants and GST-linked bank accounts when examining financial activity.
Gaming Ban Changes Course of Google Competition Case
The legal changes have already affected another matter involving India’s former real-money gaming market. A separate antitrust dispute between WinZO Games and Google recently ended after the Competition Commission of India concluded that the new legislation had changed the circumstances that originally led to the case.
WinZO submitted its complaint in 2022, alleging that Google abused its dominant position through its Play Store and Google Ads policies. The dispute included Google’s pilot program for real-money gaming apps, which admitted daily fantasy sports and rummy applications to the Play Store while excluding other real-money gaming products.
In November 2024, the Competition Commission ordered a detailed investigation after reaching a prima facie view that the complaint warranted examination. Google subsequently proposed permitting eligible skill-based real-money games and related advertising, provided the products met certification requirements.
The regulatory environment later changed. The 2025 legislation prohibited online money games and associated advertising and payment facilitation without maintaining the previous distinction between games of skill and chance. Google had already discontinued its real-money gaming pilot program in India before the case was closed.
