The Enforcement Directorate (ED) has intensified its crackdown on the burgeoning online betting ecosystem in India by issuing notices to tech giants Google and Meta, summoning them for questioning on July 21. This marks a critical escalation in the agency’s probe into illegal betting apps and their vast promotional networks, which have drawn in high-profile celebrities, influencers, and now, major digital platforms.
Why Google and Meta Are Under the Scanner:
The ED alleges that both companies played an active role in facilitating the promotion of betting platforms that are now under investigation for serious financial crimes including money laundering and hawala transactions. According to the ED:
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Google and Meta provided prime ad slots to these apps.
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Websites linked to the betting operations gained significant visibility through these platforms, amplifying their reach.
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By allowing such advertising, the tech giants allegedly aided the dissemination of illegal content disguised as legitimate gaming or fantasy platforms.
Broader Context of the ED Investigation:
This move comes as part of a widening probe into online betting networks that:
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Mask themselves as skill-based or fantasy sports apps.
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Are suspected of generating illicit funds running into thousands of crores.
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Rout money through hawala channels, making detection and tracking difficult.
In just the past few weeks:
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The ED booked 29 individuals, including several Bollywood and South Indian film celebrities, such as Prakash Raj, Rana Daggubati, and Vijay Deverakonda.
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These individuals are alleged to have endorsed illegal betting apps and received substantial sums in return.
Major Cases in Focus:
1. Mahadev Betting App Scam:
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Estimated worth: Rs 6,000+ crore.
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Accused of running a vast illegal betting network.
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Allegations of political kickbacks, including a sensational claim that former Chhattisgarh CM Bhupesh Baghel received over Rs 500 crore from promoters.
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Numerous Bollywood stars have been interrogated.
2. Fairplay App and IPL Streaming Scandal:
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Accused of illegally streaming IPL matches and facilitating unauthorised betting.
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Caused massive financial losses to Viacom18, the official broadcaster.
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The app allegedly used celebrity endorsements to build trust and attract users.
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Led to multiple arrests and attachment of assets worth hundreds of crores.
Implications for Tech Giants:
With Google and Meta now directly under ED scrutiny, this opens a new front:
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If evidence shows willful negligence or complicity, it could lead to fines, legal action, or even regulatory changes in ad policies.
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It also raises critical questions about the responsibility of tech platforms in policing paid content and preventing monetization of illegal activities.
What's Next:
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The July 21 hearing will be crucial in determining whether the tech firms had due diligence mechanisms in place.
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The ED could potentially expand the probe to other platforms, ad networks, and financial service providers involved in transactions.
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There is also growing demand for a centralised regulatory framework governing fantasy sports, betting, and digital advertising in India.
This case now sits at the intersection of tech regulation, celebrity influence, and financial crime, with potentially far-reaching consequences for how digital platforms operate in India.
