- The Enforcement Directorate is investigating endorsements by celebrities in illegal betting apps
- Celebrities like Harbhajan Singh and Suresh Raina have been questioned in the inquiry
- ED said these platforms presented themselves as hosting skill-based games but used rigged algorithms
The Enforcement Directorate has expanded its investigation into illegal online betting apps to include endorsements by cricketers Harbhajan Singh and Suresh Raina and actor Urvashi Rautela.
Sources told NDTV Profit these and other celebrities had been questioned as part of an ongoing investigation into promotion of banned platforms like 1xBet. These platforms, they said, were using 'surrogate names', such as 1xbat, in ad campaigns that include web links (for online material) and QR codes to redirect users to the original (and illegal) betting platform in blatant violation of current laws.
The ED said these platforms presented themselves as hosting skill-based games but used rigged algorithms that classify them as 'gambling operations' under existing Indian laws.
And by partnering with celebrities - a list that also includes Yuvraj Singh, another Indian cricketer - platforms like 1xBet gained 'massive visibility' and are cheating people.
A preliminary inquiry by the federal agency suggests multiple laws may have been violated, including the Information Technology (IT) Act, the Foreign Exchange Management Act, and the stringent Prevention of Money Laundering Act, as well as government notifications.
Representatives for Mr Singh and Mr Raina declined to speak to NDTV Profit, while those for Ms Rautela and others, including popular actor Sonu Sood, have not answered questions.
Media outlets are also under scrutiny; ED sources said a sum exceeding Rs 50 crore was paid to various companies to run advertising campaigns.
Illegal Betting Apps Crackdown
This crackdown on illegal betting apps and platforms - many of which are promoted by celebrities - is one of several by authorities across the country; in May Telangana Police filed cases against 25 popular actors, including Rana Daggubati and Prakash Raj.
'Thousands of lakhs of rupees are involved in these illegal platforms... it is leading families into distress, especially that of middle-class and lower middle-class', the complainant said.
READ | Revanth Reddy vs Tollywood? FIR Against 25 Actors For Betting App Ads
In response, Daggubati and Raj denied their actions were illegal, arguing they do not currently endorse these platforms any more and that, when they had endorsed them, the campaigns were limited to regions where online skill-based games are legally permitted.
It is essential to note, Daggubati's sokesperson said, these online games have been recognised by the Supreme Court as distinct from gambling, as these games are based on skill not chance.
Mahadev Online Betting Case
And, between 2023 and 2024 there was a massive controversy over the Mahdev online betting case, a quagmire of allegations and claims that roiled high-ranking politicians and bureaucrats from Chhattisgarh, including ex-Chief Minister Bhupesh Baghel, allegedly a main beneficiary.
READ | CBI Names Chhattisgarh Ex-Chief Minister Baghel In Betting App Case
Mr Baghel too denied any link to the scam and called the allegations 'politically motivated', coming, as they did, shortly before a state election in 2023 and last year's Lok Sabha poll.
As with the ED's investigation in the 1xBat - 1xbet case, the Mahadev betting app promoters - both facing extradition from Dubai - also created a subsidiary application, the Fairplay app.
READ | Juice Seller To Millionaire Scammer: Mahadev Betting App Accused's Empire
The projected illegal proceeds of the Mahadev betting app case alone are expected to cross Rs 6,000 crore, ED sources told NDTV in April, underlining the scale of such scams.
Experts believe the illegal betting app business in India is worth over $100 billion and is growing at 30 per cent annually, despite authorities' efforts to crack down on all such platforms.
There are an estimated 11 crore Indians who use these apps daily, and financial frauds by the promoters have been linked to over 1,000 suicides, including school students.
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