India’s GST crackdown on gambling sites: What cricket bettors and bonus hunters need to know

Hamish Hauslaib | 12:00am BST 13 April 2025

If you’re a cricket fan who’s ever had a go at online sports betting, this is for you. India has just taken a major step towards clamping down on online gambling, and whether you’re wagering on your preferred IPL team or considering no-deposit casino promotions for a quick bet, things are about to get tougher.

The Directorate General of GST Intelligence (DGGI) has been provided more brawn, and it’s heading towards online gaming sites like a pacer on a mission in the final over. The government’s latest move? Empowering the DGGI to block any online betting or gambling website that avoids its tax dues, whether the site is local or offshore. Let’s break that down what that actually means, especially for cricket enthusiasts, recreational punters, and bonus-seekers bettors.

What’s going on?

So, this is what happens. India’s finest GST enforcement body, the DGGI, has been empowered with sweeping powers to close down gaming platforms that are not remitting their rightful share of the Goods and Services Tax (GST). If a platform is found evading tax or operating illegally, it can now be blocked directly, in consultation with the Ministry of Electronics and Information Technology.

This follows a total overhaul in India’s tax system for online gambling. As of late 2023, every online gambling platform, including fantasy sports and betting, pays a flat rate of 28% GST. And not just on the revenue of the platform,like revenue or commissions, but on the entire stake value that users put in. Yes, you heard that right. If you bet for ₹1,000, ₹280 of it goes to the taxman, even if the site earns just a fraction of that.

Why is this happening?

The Indian government maintains that it’s all about levelling the playing field and getting its fair share. Online gambling has taken off, and as cricket season after cricket season draws millions to fantasy leagues and match betting, the industry has become a Wild West of sorts, especially since foreign sites are operating below the radar.

The officials stated that several foreign operators were letting Indian customers play without signing up locally or paying tax. In a recent crackdown, officials had supposedly frozen thousands of bank accounts, shut down over 350 links to offshore gambling websites, and even seized around ₹126 crore (that’s over $15 million). Now that the new power is in place, offending websites can simply be turned off.

How does this affect cricket fans?

Let’s be honest, sports betting and cricket just go together for many fans in India. It could be a cheeky bet on Virat Kohli scoring a fifty or a punt on an underdog team winning the toss, but betting adds a whole new dimension to the game. But with these new GST rules and powers of enforcement, your favourite betting site may be in the crosshairs. Here’s how this might pan out:

Less bets to bet on: Particularly if you bet on offshore platforms. Most of them have not registered in India or paid tax, so they can be shut off.Price bets Up: A 28% GST on every wager makes it pricier to bet. If you bet ₹500, only ₹360 could actually reach your game after paying tax and platform fees.No more ‘bonus buffers’: Those generous no-deposit bonuses or cashback offers that made online casinos and sportsbooks so tempting? They might start disappearing, as platforms try to offset the extra tax burden.

If you’re someone who plays primarily with bonuses, the GST changes are a buzzkill. Sites could scrap these offers altogether, or attach stricter conditions, like wagering requirements that are nearly impossible to meet.

The industry isn’t happy

No surprise, the online gaming industry is not happy. A number of operators took the tax to the courts, namely that it’s being applied on the entire bet instead of on the cut taken by the platform. There is currently a Supreme Court hearing under way, with most clamouring for an about-face or saner structure.

This would hurt innovation and discourage foreign investment in India’s rapidly growing online gaming sector, which was projected to grow to $5 billion by 2025, other analysts say. Others worry that pushing users off legitimate sites might prompt them to switch to illegal, underground gambling alternatives – precisely what the tax was meant to prevent. It’s an ancient “unintended consequences” situation: Tighten too hard, and you might find yourself shoving the action into murkier water.

So… What should bettors do?

If you’re a cricket fan who bets occasionally, or frequently, this is what you can do to stay one step ahead of the game:

Stay on registered platforms: Steer away from websites that lack transparent GST compliance or customer care in India. If an online platform is offering crazy bonuses or is accepting crypto deposits without KYC, it’s short-lived.Understand the charges: That ₹1,000 bet is no longer ₹1,000. Factor in taxes while calculating your risks and potential winnings.Watch the legal space: The Supreme Court could change the game. If it rules in favour of a fairer tax policy, say, taxing platform revenue instead of user stakes, things might ease up.Be bonus-savvy: If you’re playing for a no deposit casino bonus, double-check the terms. The good old days of “free money” might be behind us, but there are still solid deals out there – just read the fine print.