Breaking: Finance Ministry meets gaming federations, RMG operators kept out
FATF plans to conduct a major crackdown on offshore illegal gambling and betting platforms operating in the country.
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Finance Ministry including the Financial Action Task Force (FATF) officials met the real-money gaming (RMG) federations on Friday. However, the real-money gaming operators were kept out of the meeting. FATF officials sought details on money laundering done by online gaming platforms. FATF plans to conduct a major crackdown on offshore illegal gambling and betting platforms operating in the country.
A source told Storyboard18, "FATF officials heard the RMG industry's challenges on offshore illegal betting and they discussed the means to curb the issue". "The ministry and FATF officials are also likely to meet the RMG operators soon".
Earlier Storyboard18 reported that the The FATF will outline its agenda and the government's stance on the industry while seeking feedback and suggestions on curbing money laundering in online gaming.
This week, An RMG operator told Storyboard18, "The Finance Ministry aims to discuss strategies for combating money laundering in the online gaming space. We anticipate a swift crackdown on offshore gambling platforms that are illegally operating in India. These unregulated offshore betting companies not only affect the revenue of legitimate businesses but are also involved in terror financing and money laundering, which is a serious concern."
A report by Ernst & Young and the US-India Strategic Partnership Forum (USISPF) had forecast that the online gaming sector would create 250,000 jobs by 2025. However, under the new GST regime, 83 percent of the companies from the gaming industry are struggling with employment creation.
The Foreign Direct Investment (FDI) has nearly stalled in the sector under the new tax framework, in contrast to the $1.7 billion FDI received in 2021.
(This is a developoing story, more details awaited)
