FIU-IND Mandates Registration Of Online Gaming Platforms To Curb Money Laundering And Enforce Strict Compliance

The Financial Intelligence Unit - India (FIU-IND) has mandated registration all online gaming platforms to curb money laundering and impose obligations to adhere strict compliance measures including Know Your Customer (KYC) protocols, transaction monitoring, and the reporting of suspicious activities.

India has 155 million active users engaging in real money online gaming generative a revenue of USD 2.7 billion in 2024 with most gaming serves located overseas.

Earlier Virtual Digital Asset (VDA) service providers were made to register with FIU-IND to fortify financial compliance across emerging digital sectors.

“The proposal seeks to categorize online gaming companies as "reporting entities" under the Prevention of Money Laundering Act (PMLA) and ensure that illegal offshore betting platforms are fined and blocked—enabling the growth of the legitimate online gaming industry in India,” confirmed a senior tax official.

An inter-ministerial consultations involving key bodies such as the Prime Minister's Office, Ministry of Home Affairs, Department of Revenue, Ministry of Electronics and Information Technology (MeitY), Enforcement Directorate (ED) and the Central Board of Direct Taxes (CBDT) will present report on the mandate to register online gaming portals, mobile apps and websites.

The report highlights the need for registration of the booming online gaming ecosystem with the FIU-IND rto monitor financial flows to enhance transparency and fostering a more secure environment for legitimate businesses.

The government has also implemented rules to combat online gaming addiction and cybercrime, including obligations for intermediaries to remove unlawful information. The Ministry of Education and the Ministry of Information and Broadcasting have issued advisories to parents, teachers, and broadcasters to mitigate the risks of online gaming.

The advisory warns that unrestricted and limitless online gaming can lead to serious gaming addiction.