INR 212 Cr Seized In Money Laundering Probes Involving Online Gambling Platforms

The Minister of State (MoS) for Finance Pankaj Chaudhary on Thursday (December 22) said that the Enforcement Directorate (ED) has so far seized INR 212.91 Cr in connection with money laundering probes involving online gambling platforms. 

“… it has been noticed that online betting and gambling sites/apps are used for money laundering and hawala transactions. In these cases, as on 16.12.2022, PoC (proceeds of crime) amounting to INR 212.91 Cr have been identified which stands attached/freezed/seized under the provisions of PMLA,” Chaudhary said in a written reply. 

Besides, ED has also lodged three prosecution complaints in connection with these money laundering investigations.

The MoS said that no such proposal was under consideration before the government that would legalise online betting and gaming applications. Further, he said that the Centre has so far not conducted any survey on the amount of money involved in online betting and gambling in the country. 

As of now, the government is mulling a policy framework to govern the online gaming space. Citing serious concerns around online gaming, Communications Minister Ashwini Vaishnaw said that the government has initiated a very serious consultation process with all stakeholders and would come up with a proper policy very soon.

The statement comes weeks after the Centre, in a major crackdown, directed Google to stop overseas online betting platforms, such as Betway, 1xBet and others, from marketing their ads in the country.

Even former Karnataka Law minister and senior BJP Leader S Suresh Kumar has sought a blanket ban on the promotion of online gambling. The concerns have largely been attributed to socio-economic and financial issues, and suicides in some cases. 

With no consolidated regulatory framework, states are free to choose their own set of norms to regulate online gaming and gambling. While Karnataka is currently involved in a legal tussle over banning online games, the Tamil Nadu government has promulgated a law to ban such games. 

While gambling is banned across the country, a lack of law for online gambling platforms has opened the floodgates for a slew of such apps. Earlier, the probe into fraudulent gaming app e-nuggets unearthed a mega scam, which has so far seen ED seizing INR 18 Cr in cash and INR 20 Cr worth of bitcoins. 

Meanwhile, these online gambling apps continue to see higher traction from gullible users who are lured by the promise of high returns. With the proposed legislation yet to see the light of day, it remains to be seen how the industry shapes up even as enforcement challenges remain.