Online gambling has become a growing concern in Kashmir valley, with many families experiencing financial distress and emotional turmoil due to its increasing prevalence. Stories of individuals, particularly young people, getting drawn into this digital form of betting have become alarmingly common. The rise of online gambling, particularly during the ongoing Indian Premier League (IPL) season, has prompted authorities to intensify crackdown on illegal online gaming platforms. The Directorate General of Goods and Services Tax Intelligence has initiated enforcement actions against offshore entities in this sector, emphasizing the economic and legal challenges posed by unregulated online gaming. The online money gaming industry consists of both domestic and foreign operators. Under the Goods and Services Tax (GST) law, online money gaming is categorized as a supply of goods and is subject to a 28% tax. Operators in this sector are legally required to register under GST. However, many offshore entities evade taxation by failing to register, concealing taxable transactions, and bypassing their financial obligations. The DGGI has identified around 700 offshore entities suspected of engaging in such activities and has taken action against 357 non-compliant websites and online platforms, working in coordination with the Ministry of Electronics and Information Technology (MeitY) under the IT Act of 2000. Recent enforcement operations have uncovered large-scale financial fraud linked to these gambling platforms. Bank accounts used to collect funds from participants have been targeted, resulting in nearly 2,000 accounts being blocked, with approximately Rs. 4 crore seized. In another instance, 392 bank accounts linked to Unified Payments Interface (UPI) IDs associated with offshore gaming platforms were put on debit freeze, and Rs. 122.05 crore was provisionally attached. Investigations have further revealed that certain Indian nationals were running online gambling operations from outside the country, using mule accounts to process transactions. The DGGI has identified and blocked 166 such mule accounts, leading to the arrest of three individuals so far, with more investigations underway. The unchecked operations of foreign gambling entities not only distort fair market competition but also pose risks to financial stability and national security. These entities frequently circumvent legal restrictions by creating new web addresses after their existing sites are blocked. Funds funneled through mule accounts have the potential to be used for illicit activities, raising concerns about their implications beyond financial fraud. Additionally, the widespread promotion of these gambling platforms by Bollywood celebrities, cricketers, and social media influencers has contributed to their growing popularity. Many unsuspecting individuals fall prey to these endorsements, unaware of the financial risks involved. Authorities have urged the public to remain cautious and avoid engaging with offshore online gambling platforms, as participation not only jeopardizes personal finances but also indirectly supports activities that undermine financial integrity. While online gaming is legally permitted in India under regulated conditions, its addictive nature has led to severe consequences for many individuals and families. Moreover, in Kashmir, the social stigma surrounding gambling-related financial troubles often prevents affected families from seeking assistance. Raising awareness is therefore essential to tackle this growing menace.
Betting Trap
