- The Enforcement Directorate conducted raids on an illegal online betting platform Probo on July 8 and 9
- Probo received Rs 134.84 crore funding from foreign entities in Mauritius, Cayman Islands, and offshore
- Probo allegedly ran illegal betting disguised as opinion trading, lacking KYC and safeguards for minors
The Enforcement Directorate (ED) on Wednesday said it launched a major crackdown on illegal online betting platform 'Probo,' conducting search operations on July 8 and 9 across its four locations in Haryana.
The searches were carried out under the Prevention of Money Laundering Act (PMLA), in Gurgaon and Jind, targeting Probo Media Technologies Pvt. Ltd. - the company behind the online platform "Probo" - and its promoters Sachin Subhaschandra Gupta and Ashish Garg.
The investigation revealed that Probo has received funding worth Rs 134.84 crores through equity from foreign entities based out of Mauritius, the Cayman Islands, and other offshore locations.
Several incriminating documents and digital records were seized by the ED, while investments worth Rs 284.5 crore - in fixed deposits and shares - were frozen, along with three bank lockers belonging to the accused parties.
The ED took action after multiple First Information Reports (FIR) were registered in Gurugram, Palwal (Haryana), and Agra, accusing Probo of luring users with false promises of earning money through 'yes or no' questions. According to the FIRs, what appeared to be a legitimate skill-based game was, in reality, "a form of betting promoting addictive gambling practices disguised as "opinion trading" on topics like election results."
According to the FIRs, Probo lacked safeguards to prevent minors from using the app and skipped Know Your Customer (KYC) verification. It also carried misleading advertisements to lure new users and promoted betting disguised as "opinion trading."
The ED's also investigation revealed the games on Probo operated entirely on chance, involving binary "yes/no" questions with only two outcomes - a format identical to gambling.
The ED has confirmed that further investigation is underway.
