- Robin Uthappa, Yuvraj Singh, and Sonu Sood summoned by ED over illegal betting app endorsements
- ED is probing multiple betting apps and celebrities for money laundering and tax evasion
- Government banned 1xBet and similar apps under IT Act Section 69A in 2023, but access persists
Cricketers Robin Uthappa and Yuvraj Singh and actor Sonu Sood are now on a growing list of celebrities to be probed over the endorsement of illegal betting apps and, in Mr Uthappa's case, the alleged violation of money-laundering laws. All three have been summoned by the Enforcement Directorate next week; Mr Uthappa on Monday, Mr Singh on Tuesday, and Mr Sood on Wednesday.
They join two other ex- cricketers, Shikhar Dhawan and Suresh Raina, as well as actor Urvashi Rautela and Trinamool MP Mimi Chakraborty, in being questioned by the ED as it investigates money-laundering and tax evasion by the 1xBet app, which advertised frequently during live screening of cricket matches.
In fact, the ED is investigating multiple betting platforms and the role of celebrities in promoting, consciously or otherwise, schemes the government said have defrauded users and investors of crores.
Ms Rautela, reportedly 1xBet's 'India ambassador', is schedueld to appear today, i.e., Tuesday, as is Bengali actor Ankush Hazra. On Monday the agency recorded Ms Chakraborty's statement.
Last week Mr Dhawan was questioned for over eight hours at the ED's Delhi office and left only after his statement was recorded under the stringent Preventoin of Money Laundering Act, or PMLA.
In early-August Mr Raina was also questioned.
The ED asked the former cricketer about his role in the promotion of 1xBet and the details of monetary transactions, including any fees he was paid or charged.
And in June another former cricketer, Harbhajan Singh was also questioned.
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The ED's inquiry is part of a wider network of investigations into various betting platforms - like Junglee Rummy, JeetWin, and Lotus365 - and the celebrities who have endorsed them, including popular actors Rana Daggubati, Prakash Raj, and Lakshmi Manchu, all of whom have since appeared for questioning.
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Sources said a common thread in questions to celebrities is if they knew, or had been made aware, that betting apps like 1xBet - frequently re-labelled to avoid being shut down - are illegal under Indian law.
In 2023, in fact, the government, via the Information and Broadcasting Ministry, issued advisories to that effect; the media and online publishers and aggregators were told not to advertise such apps or sites.
The 1xBet Case
The argument is that platforms like 1xBet and its avatars - 1xBat, for example - claim to host skill-based games, but used rigged algorithms that make them a gambling enterprise under existing Indian laws.
Investigations so far have also indicated multiple laws have been broken, including the Information Technology (IT) Act, the Foreign Exchange Management Act, and the PMLA. Media outlets are also under scrutiny; in June sources said a sum exceeding Rs 50 crore was paid for advertising campaigns.
The government's 2023 advisory banned 1xBet and other offshore betting apps. Under Section 69A of the IT Act access to these was barred within India. However, that access has rarely been a problem, thanks to workarounds like encrypted messaging apps and VPN, or virtual private network, services.
And advertising involving high-profile celebrities ensured 1xBet retained top-of-mind recall.
The app also frequently changed names to stay ahead of the authorities. Should suspicion fall on one, for example, that is shut down and a new, with marginally different branding, is launched.
And the owner/operators of these platforms are routinely based abroad, making it difficult for Indian law enforcement, whether the ED or the Central Bureau of Investigation, to catch them.
They often set up base in countries with lax gambling laws or where gambling is legal.
Social Media In Net Too
It isn't just actors and ex-cricketers who are being grilled.
Facebook and Instagram owner Meta and Google are also being scrutinised over their role in promoting betting apps on their platforms. In July ED officials recorded statements by an India representative of Google. Nobody from Meta appeared, but sources said the company is cooperating.
Some of the questions the agency is now asking are:
- Did companies like Google and Meta deliberately promote betting apps?
- Did these platforms profit from advertisements?
Illegal Betting Apps Crackdown
Sources told NDTV a staggering 22 crore people across the country have downloaded these apps or visit the websites and at least half are regular users, i.e., they bet every day. Sources also said this 'market' is now worth Rs 8.3 lakh crore and is growing at a rate of 30 per cent every year.
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Also, top-tier betting apps cost the government Rs 27,000 crore in taxes annually.
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With one eye on the financial losses and another on the mental health issue, the Promotion and Regulation of Online Gaming law was passed this year. It highlights concerns over addiction, fraud by game operators and developers, and inconsistences in state laws regarding gambling. It also proposes stricter oversight of gaming platforms, particularly those offering real-money games, such as poker.
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