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Illegal Gambling Mixed Together with Credit Card Fraud

By: Team Ifairer | Posted: 30-07-2021
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Illegal Gambling Mixed Together with Credit Card Fraud, 10cric
The state of West Bengal is considered to have one of the more liberal views on online gambling
out of the whole Subcontinent. Yet, when it comes to organizing mass income tax avoidance
schemes on earnings from online gambling, matters get quite serious. Players should be careful
where and how they place their bets and knowing where to get helpful information from can be
very important.

A Neighbors’ Tip-Off Leads to the Unraveling of a Criminal Syndicate
Three young males were arrested in late June in the census town of Karimpur, district of Nadia,
after a tip-off from their neighbours. The local residents suspected the trio of illicit activities
based in the house the three men were using together. There, the police found and seized the
staggering 800 SIM cards and several PayTM barcodes at the location.

Manabendra Sarkar, Mujibur Sheikh, and Ramen Karmakar, all three of them in their early
thirties, were charged with forgery and deception. During preliminary interrogations, they
admitted to have been illicitly collecting innocent people’s credit and debit card details together
with card verification values (CVV) by pretending to be bank officers.

The trio further admitted their involvement with online gambling accomplices based in China.
This prompted local police officers to call in Krishnagar district’s cyber crime wing.

According to experienced police sources, such online gambling crimes are generally conducted
through the creation of closed groups on instant messaging interfaces such as Telegram or
WhatsApp. The administrators of the group then refer members to certain websites where the
users are welcomed to gamble and place bets. Website domains typically are offshore – usually
in China – and betting transactions are arranged through payment platforms such as PayTM.
Earnings are generally transferred to a number of linked bank accounts in an effort to avoid
Indian authorities’ income tax scanners.

How Legal is Online Gambling in West Bengal?
Indian constitution delegates the power to regulate betting and gambling to the individual states.
The outdated colonial-era Public Gaming Act of 1867 sets the national framework on the matter
and makes the distinction between games of chance and games of skill.
Gambling and betting in West Bengal are regulated by the state’s Gambling and Prize
Competitions Act of 1957. The law focuses mainly on prohibiting gaming houses and organized
gambling conducted at a distinct location. Penalties for organizing a gaming house or for being
found in one include imprisonment and a financial sanction. Some forms of betting, such as
lottery and horse racing, are made legal together with certain card games like rummy and poker
if organized by licensed operators.

Tax Legislation is not Interested in the Legal Status of the Activity
Regardless of how legal or illegal it might be to place bets on a website with a Chinese domain
after being referred there by a secure WhatsApp or Telegram group administered in India, taxes
must be paid.

The Union’s Income Tax Act explicitly postulates that income from both legal and illegal
activities is taxable and places a flat 30 per cent TDS (tax deductible at source) on all earnings
from gambling or betting whatsoever. A non-taxable limit of � 10,000 applies, and there are
different surcharges if winnings exceed � 50 lakhs or � 1 crore. The Health and Education
Cess of 4 per cent on top of due tax is applicable as well.

There is also the Central Goods and Services Tax Act which specifically defines casinos,
racecourses and similar services into a separate entertainment category chargeable with the
highest rate of 28 per cent. The GST is payable by the suppliers of goods and services in India
who have to be registered under the CGST Act.

Online Gambling Can Be Safe and Secure
The West Bengal Gambling and Prize Competitions Act is old enough not to mention anything
about gambling online. It is considered, and practice shows it, that people can safely gamble
online on foreign platforms from their homes or on their mobile phones as long as no tax
avoidance is involved.

To avoid risks, a player should look for verified and trusted online casino operators like
10Cric.com. Helpful information can be found on leading gambling authority website
SevenJackpots where all casino platforms are carefully checked and tested before being listed.
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