In a significant development in the ongoing crackdown on online betting rackets, the Enforcement Directorate (ED) on Saturday issued notices to tech giants Google and Meta, summoning both companies for questioning on July 21. The summons come amid allegations that the platforms played a role in promoting and enabling illegal betting applications currently under investigation for serious financial crimes such as money laundering and hawala transactions.
The ED alleges that Google and Meta not only permitted the advertisement of betting apps on their platforms but also offered premium visibility and reach, thereby facilitating their widespread promotion. This move marks a pivotal escalation in the probe, which had so far been largely focused on influencers and celebrities. With Big Tech now in the crosshairs, the investigation appears to be entering a new and potentially more explosive phase.
Betting Apps Masquerading as Skill Games
The ED has been meticulously mapping out a complex network of online betting platforms, many of which present themselves as skill-based games to bypass regulations. Behind the scenes, however, these platforms are allegedly running illegal gambling operations that have raked in illicit earnings worth thousands of crores, routed through intricate hawala networks to evade detection.
Sources in the agency revealed that these operations often use digital payment gateways, shell companies, and fake accounts to funnel black money out of the country. The ED’s ongoing probe suggests that the money trail spans not just India but extends to international territories, making this one of the most extensive digital financial crime investigations in recent years.
Celebrities Under the Scanner
The probe has already pulled several high-profile names into its vortex. Just last week, the ED registered a case against 29 individuals, including actors, television personalities, and social media influencers, who allegedly promoted these betting apps in return for substantial remuneration.
Among those named in the Enforcement Case Information Report (ECIR) are actors Prakash Raj, Rana Daggubati, and Vijay Deverakonda. The report claims these personalities endorsed the apps on various platforms, knowingly or unknowingly aiding the illegal operations and influencing millions of users to participate in gambling disguised as online gaming.
The ₹6,000 Crore Mahadev Betting App Scandal
At the heart of this multi-layered scam is the Mahadev Betting App, a high-profile case that has sent shockwaves through both the entertainment and political spheres. With an estimated fraud of over ₹6,000 crore, the app’s promoters allegedly created a network of thousands of agents and fake IDs to run the operation.
One of the most explosive claims by the ED in this case is that former Chhattisgarh Chief Minister Bhupesh Baghel received over ₹500 crore in political kickbacks from the app’s handlers. While Baghel has denied these allegations, the case has taken on heavy political overtones, with multiple opposition leaders accusing the government of using investigative agencies for vendetta.
IPL, Streaming Rights, and the Fairplay Fiasco
Another key component of the investigation involves the Fairplay IPL betting app, which illegally streamed Indian Premier League (IPL) matches and allowed users to place bets on them in real-time. This not only violated broadcasting laws but also caused significant revenue losses to Viacom18, the official broadcaster of IPL.
Several Indian celebrities reportedly lent their image and influence to the Fairplay app, helping it gain user trust and market traction. The fallout has been severe: multiple arrests, asset seizures worth hundreds of crores, and filing of chargesheets against key players in the scam.
Tech Giants Face Tough Questions
With the ED now summoning Google and Meta, questions are being raised about the responsibility of digital platforms in monitoring advertisements and preventing the misuse of their services for illegal activities. While both companies maintain that they have robust ad policies and content moderation mechanisms, the ED appears unconvinced and seeks clarity on how such apps were given prominence and legitimacy.
Legal experts say that if Google and Meta are found to have willfully ignored warning signs or failed to exercise due diligence, they could be held liable under sections of the Prevention of Money Laundering Act (PMLA) and Information Technology Act.
The upcoming hearing on July 21 could set the tone for future regulatory measures involving Big Tech’s accountability in financial crimes. If proven complicit, this could lead to unprecedented fines, stricter ad policies, and even temporary restrictions on certain operations.
As the probe continues to unravel, more celebrities and digital enablers may find themselves in the line of fire. The ED’s aggressive stance, bolstered by technological forensics and financial intelligence, suggests that this is just the beginning of what may turn out to be one of the biggest digital crime crackdowns in Indian history.
