Meta, Google Gives ED Summons a Miss in Illegal Betting Probe, Fresh Notice Issued for July 28

Executives at Meta and Google skipped their summons before the Enforcement Directorate (ED) scheduled on Monday, in connection to the money laundering case linked to promotion of "illegal" online betting and gambling platforms. Official sources said that the tech companies have now been given fresh summons for July 28.

As per this recent development, it is understood that representatives at the companies sought deferment of the July 21 summons, claiming they need more time to collect relevant information and documents before they present themselves for questioning before the federal probe agency.

Thereby, the executives have been given a one-week extension and asked to depose on July 28, sources added.

They further said that once they appear in front of the ED, their statements will be recorded under the Prevention of Money Laundering Act (PMLA).

No immediate response has been received from the two companies in regard to this.

Currently, multiple platforms hosting betting and gambling links are being probed by the federal agency. Such instances also include advertisements placed on various Internet-based social media outlets and app stores.

In case of tech giants Meta and Google, they are believed to have been called to understand how such illegal platforms can place advertisements on their social media and communication links.

Additionally, some celebrities, actors as well as sports persons are also under ED’s scanner for these cases, and thereby they are also expected to depose before the agency.

The ED has claimed that illegal online betting and gambling platforms were leading to innocent people being cheated of their hard-earned money. Many were also found to be laundering and evading taxes worth crores of rupees.

More than a dozen of such big cases linked to illegal gambling and betting platforms across the country are currently being investigated. This also includes the Mahadev Online Book (MOB) app whose main promoters hail from Chhattisgarh.

Media reports from last week said that Indian celebrities and social media influencers, including Vijay Deverakonda, Rana Daggubati, and Prakash Raj, have come under the scanner of the Enforcement Directorate (ED). The enforcement agency has launched a probe against over 20 celebrities and influencers under the Prevention of Money Laundering Act (PMLA) for allegedly promoting illegal betting app.

The matter came to the surface as people filed FIR against these platforms, alleging that they were cheated by these apps and lost significant money in the process. In the promotional videos, these celebrities were featured disguised as entertainment or social service. 

The Indian gaming industry has witnessed sharp growth, including online betting and gambling-related activities fueled by increased smartphone and data penetration, and a young demographic. The market is projected to grow at 27% from $2.6 billion in 2022 to $8.6 billion by 2027. 

While the market is experiencing growth, the laws regulating it haven’t gone through a major reform.

Online betting and gambling-related apps are regulated under the Public Gambling Act of 1867 and cover games like playing cards for money, betting on match outcomes, online poker or roulette and lottery games. It is a broad framework that prohibits owning, operating, or maintaining a gaming house and prescribes penalties for the same. The legislation doesn’t carefully define whether a gaming house means a physical property where such activities take place or extends to an online platform as well, resulting in a grey area that could be exploited.