On February 14, 2025, officials from India’s Finance Ministry and the Financial Action Task Force (FATF) convened with representatives from real-money gaming (RMG) federations to address concerns surrounding money laundering within the online gaming sector. Notably, individual RMG operators were not included in this meeting.

The primary agenda centered on the challenges posed by offshore illegal betting and gambling platforms operating within India. FATF officials sought insights from the federations regarding the extent of money laundering facilitated through these online platforms and discussed potential strategies to mitigate these illicit activities.

While the federations provided an overview of industry-wide challenges, the absence of individual RMG operators meant that specific operational insights were not directly addressed. However, sources indicate that the Finance Ministry and FATF officials plan to engage with RMG operators in subsequent meetings to gain a more comprehensive understanding of the industry’s dynamics and the measures operators are implementing to combat financial malpractices.

The Finance Ministry has scheduled a meeting with RMG operators to delve deeper into issues related to money laundering and the Goods and Services Tax (GST) framework affecting the online gaming industry. This forthcoming discussion aims to develop collaborative strategies to ensure regulatory compliance and financial transparency within the sector.

The online gaming industry in India is navigating a complex regulatory environment, with varying legal frameworks across different states. Operators face challenges in adhering to a patchwork of laws, ranging from outright bans to regulated frameworks, which complicates compliance efforts and increases the risk of financial irregularities.

The Finance Ministry’s proactive engagement with both RMG federations and operators underscores the government’s commitment to addressing financial malpractices in the online gaming sector. By fostering dialogue among stakeholders, the authorities aim to establish a robust regulatory framework that ensures the industry’s integrity while promoting responsible gaming practices.

Key Highlights:

• The Finance Ministry and FATF officials met with RMG federations to discuss money laundering concerns in the online gaming industry.
• Individual RMG operators were not part of this initial meeting but are expected to be engaged in future discussions.
• Upcoming meetings aim to address issues related to money laundering and GST compliance within the sector.
• The industry faces challenges due to diverse state regulations, complicating compliance efforts.