India is considering tighter payment-data requirements that could give tax investigators more information about websites behind transactions linked to illegal online gaming and betting.
The Directorate General of GST Intelligence (DGGI) has proposed requiring payment records to identify the website that directed a user to make a payment. It also wants websites to disclose every bank account associated with their goods and services tax (GST) registration.
The recommendations followed a 14-month investigation into illegal gaming and betting networks that identified INR 700 billion ($7.4 billion) in transactions during one financial year. That figure covers transactions identified during the investigation and does not represent a final assessment of operator revenue, tax evasion or government losses.
Authorities Seek Clearer Payment Trails
The proposal addresses a gap in existing payment records. Banks and payment gateways generally record the merchant receiving a transaction, while illegal betting websites can allegedly direct users to proxy merchant companies.
That can make it harder for investigators to connect a website with the account receiving the money. Requiring records to show the website that directed the transaction would provide another link in the payment trail.
The DGGI also wants all accounts linked to a website’s GST registration disclosed. This could give investigators a broader view of accounts used to receive or transfer funds associated with illegal gaming.
Authorities have yet to determine who would collect and maintain the information. Gaming platforms, banks, payment gateways and aggregators could have roles. The process for verifying the originating website also remains undecided.
Consultation Continues
The recommendations remain under consultation. The process will determine how information is collected, stored and shared, along with which organisations would have responsibility for the requirements.
The changes could create additional due-diligence obligations for banks and payment companies.
The DGGI investigation also examined whether illegal gaming and betting networks could facilitate money laundering or other illicit financial activity. The amount of revenue lost by the government remains under investigation.
The proposals follow India’s Promotion and Regulation of Online Gaming Act, 2025, which prohibits online money games and bars banks and payment systems from processing related transactions. Its implementing rules took effect on May 1, 2026.
Google Case Shows Regulatory Impact
The legal shift has also affected a separate antitrust dispute involving Google.
WinZO Games filed a complaint in 2022, alleging that Google abused its dominant position through Play Store and Google Ads policies. The Competition Commission of India ordered a detailed investigation in November 2024 after finding a prima facie basis to examine the complaint.
Google had proposed allowing permissible skill-based real-money games and related advertising subject to certification. It later ended its real-money gaming pilot and stopped accepting related advertisements in January.
The 2025 law subsequently prohibited online money games, advertising and payment facilitation without distinguishing between skill and chance.
WinZO sought to withdraw its complaint during an August 25 hearing. The CCI concluded that continuing the case would serve no useful purpose because the original relief could no longer be granted. It said Google’s conduct could be examined again if the legislation is stayed, overturned or repealed and the alleged practices return.
Source:
“India proposes new payment rules to track gambling payments”, sigma.world, September 6, 2026
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