ED Knocks on Zepto’s Door Over Banned Betting App Parimatch Ads

The Enforcement Directorate (ED) has reached out to quick-commerce platform Zepto as part of its ongoing investigation into alleged money laundering linked to Parimatch, an offshore betting platform that is banned in India, according to a report by The Economic Times citing people familiar with the matter.

Investigators are examining whether promotional material related to Parimatch was distributed through the platform. The agency sought information from Zepto on the advertisements and the process followed before accepting them.

People familiar with the development told ET that the ED wanted to understand whether the company had verified the advertiser's credentials before running the campaigns. The betting platform is under investigation for allegedly continuing its India operations through multiple mirror websites despite restrictions.

What ED Is Examining

According to the report, investigators found Parimatch advertisements were promoted through quick-commerce channels and that flyers linked to the platform were allegedly distributed along with customer deliveries.

The report said the ED sought clarification on whether the advertiser's credentials had been verified before the campaigns were run. A 2022 advisory issued by the Ministry of Information and Broadcasting had cautioned against the promotion of online betting and gambling advertisements.

People close to Zepto told ET that the company was contacted through email and asked to share information related to the advertisements. According to the report, the company informed investigators that a third party handled the campaigns and shared the relevant details. Sources also said no company executive had been summoned.

ED Expands Betting Probe

The development comes weeks after the ED conducted searches at 17 locations linked to Parimatch. During the operation, the agency seized around ₹1.2 crore in cash and froze bank balances worth about ₹3.8 crore.

Investigators have alleged that the betting operation generated more than ₹3,000 crore annually. In a statement issued in May, the ED said betting-related advertisements were promoted through leading quick-commerce applications and circulated alongside grocery deliveries to attract new users.

The agency has also alleged that Parimatch used surrogate advertising channels and social media platforms to reach customers. Earlier actions in the case reportedly led to the freezing of assets worth more than ₹110 crore and the seizure of around 1,200 mule credit cards.