The Enforcement Directorate has attached proceeds of crime (PoC) amounting to Rs 212.91 crores in cases of money laundering through online betting, gambling sites/apps and hawala transactions under the provisions of the Prevention of Money Laundering Act, 2002, according to Minister of State for Finance Pankaj Choudhary’s response in the Parliament. The minister was answering questions related to the money involved in online betting, gambling and foreign investors involved in such activities in the Rajya Sabha on December 20. Choudhary, in his written reply, informed the Parliament that the Enforcement Directorate is investigating several cases concerning frauds related to cyber crimes and crypto assets, which also include cases of online betting and gambling. Why it matters? ‘Betting and gambling and its taxation’ in India are covered as State subjects and are illegal or strictly regulated in different states. Tech industries have previously written to the finance ministry saying that online skill-based gaming should be treated differently from gambling while framing taxation laws, MediaNama reported. Moreover, the IT minister had expressed concerns over the promotion of online betting apps on social media platforms, MediaNama reported. As the regulatory framework concerning online gaming and betting in India evolves, the minister’s response further indicates the government’s emphasis on regulating gambling and betting activities. Taxation on online gaming Choudhary offered clarity over the question of whether there is a clear definition of ‘game of skill’ and ‘game of chance’ under GST and whether they may affect the taxation process for online betting and gaming…
