More than two dozen offshore gaming applications are currently under the scanner of ED for remitting and round-tripping funds
These offshore gambling apps have caused gamblers to incur losses to the tunes of INR 1 Lakh Cr
Operators of these entities are primarily based out of UAE, Sri Lanka and a few other South Asian countries with associated telecallers and bookies operating out of India
Amid a rising influence of offshore betting platforms in India, the enforcement directorate (ED) has reportedly intensified its vigilance on such gambling applications.
According to an ET report, citing sources, more than two dozen offshore gaming applications are currently under the scanner of ED for remitting and round-tripping funds. These offshore gambling apps have caused gamblers to incur losses to the tunes of INR 1 Lakh Cr.
“Multiple probes are underway in different states and zones. A plan is in the works to take action against the India connections who are helping the foreign beneficiaries to round-trip money. This could break the chain,” the report quoted a source in saying.
The report highlights that shutting down one entity leads to the actors behind the app floating a different illicit app to continue their operation. These actors are primarily based out of UAE, Sri Lanka and a few other South Asian countries with associated telecallers and bookies operating out of India.
It further said that money movement around such entities encompasses two portions – collection from gamblers in mule accounts opened in the names of vegetable vendors, small grocers, neighbourhood tailor, and autorickshaw drivers who are paid off small amounts for lending their IDs and funnelling the funds in layered transactions to current accounts of scores of private limited entities.
This comes at a time when the Centre is exploring multiple ways of curtailing gambling via such fraudulent offshore apps. In a bid to curtail their visibility and thus the ability to rope in susceptible gamblers, the Ministry of Consumer Affairs was reported to be mulling actions against indirect and surrogate advertisements promoting illegal betting and gambling back in May.
Besides, the Ministry of Information and Broadcasting (MIB) also advised social media influencers to refrain from promoting or advertising offshore online betting platforms back in March.
In the same month, the Central Consumer Protection Authority (CCPA) issued an advisory emphasising the prohibition of advertising, promotion, and endorsement of unlawful activities prohibited under various laws.
“Betting and gambling are strictly prohibited under the Public Gambling Act, 1867, and are considered illegal in the majority of regions across the country. Despite this, online betting platforms and apps persist in advertising betting and gambling directly, as well as under the guise of gaming. Endorsements of such activities present considerable financial and socio-economic implications, especially to the youth,” the advisory said.
It is pertinent to note that there is no law explicitly stating that online gambling is illegal.
Despite this, online betting is only growing in India. According to data by Statista, India is the world leader in online gambling with the market projected to stand at $2.9 Bn in 2024. Further, India’s online gambling market is expected to touch $5.49 Bn by 2032 growing at a CAGR of 8.10% from 2024-2032, according to a report by IMARC Group.
