The Indian Ministry of Electronics and Information Technology (MeitY) has taken action against 22 illegal betting apps and websites in response to a request from the Enforcement Directorate (ED). This move comes amid an ongoing investigation into alleged money laundering activities in India. In April, MeitY introduced new regulations to ensure that only “permissible” online real-money games could operate in the country, although regulatory bodies to oversee these games have yet to be appointed.
Blocking of Illegal Betting Apps:
Enforcement Directorate Request: The MeitY’s action follows a request from the Enforcement Directorate (ED) to clamp down on illegal betting apps and websites. These actions are part of a broader investigation into alleged money laundering in India.
Regulatory Framework: In April, MeitY introduced new rules to govern online real-money games in India. However, the appointment of regulatory bodies to oversee these games is still pending.
Mahadev Book Investigation: The list of blocked apps includes Mahadev Book, which is currently under investigation by the ED for its alleged involvement in an illegal betting syndicate offering a range of live games, including poker, cricket, football, badminton, tennis, and more.
Money Laundering Allegations:
Investigation Trigger: The investigation into Mahadev Book was triggered by a statement from a “cash courier,” alleging that Chhattisgarh Chief Minister Bhupesh Baghel received Rs 508 crore ($61 million) from the app’s promoters based in the UAE.
Accused in Custody: In connection with the money laundering investigation, the owners of Mahadev Book are now in custody. Among the accused are Bhim Singh Yadav, a constable in the Chhattisgarh Police Force, and Asim Das. They have been arrested under the Prevention of Money Laundering Act (PMLA) for alleged money laundering offenses.
Challenges in Regulating the Indian Betting Market:
Taxation Decision: In July 2023, the Goods and Service Tax Council in India imposed a 28% goods and service tax on online gaming, horseracing, and casinos, challenging both skill-based and chance-based games. This decision has prompted mixed reactions.
Illegal Betting Activities: Indian authorities are actively addressing the challenge of tackling illicit betting activities, such as the recent arrest of three individuals in Goa for their alleged involvement in illegal betting related to the World Cup cricket match between India and Afghanistan.
The Indian Ministry’s actions against illegal betting apps are part of a wider effort to combat money laundering and regulate the gambling market. These developments underscore the evolving landscape of online betting in India and the authorities’ determination to curb illicit activities. The government’s introduction of taxation and regulatory measures demonstrates its commitment to ensuring a responsible and controlled gambling environment.