Ministry of Electronics and Information Technology (MeitY) has reported that operators Mahadev Book and Reddyannaprestopro are facing blocking orders due to illegal betting app syndicate investigations by the enforcement directorate (ED).
The ED has conducted raids on Mahadev Book in Chhattisgarh, uncovering unlawful operations that have resulted in the arrest of individuals such as Bhim Singh Yadav. Yadav, who is currently employed by the Chhattisgarh police, was detained under Section 19 of the Prevention of Money Laundering Act (PMLA).
The lack of action from the local Chhattisgarh government has prompted MeitY’s intervention. Shri Rajeev Chandrasekhar, Minister of State for Skill Development and Entrepreneurship, as well as Electronics and Information Technology in India, expressed that the state government had the power to recommend the shutdown of websites and apps under Sec 69A IT Act but failed to do so during the 18-month investigation period. The sole request to act came from the ED.
India recently implemented a new online gambling tax rate, imposing a flat 28% turnover tax on licensed operators handling online gambling, casino, and horse betting activities. This turnover-based tax applies to the entire bet amount and not just gross gaming revenue (GGR).
The introduction of the new tax rate led Betway operator Super Group to withdraw from the Indian market. Furthermore, in 2023, India made another significant change by publishing rules to regulate online gambling, emphasizing the need for compliance with existing laws and proposals for self-regulatory bodies responsible for protecting players, addressing addiction, preventing financial crime, and safeguarding children.
