Investigation into Suresh Raina's betting app involvement: Unpacking the 1xBet scandal and the reasons behind ED's inquiry into the former cricketer.
In a developing story, the Enforcement Directorate (ED) is investigating a money laundering case linked to the betting app 1xBET. The app, known for its extensive sports betting options, live betting features, casino games, and promotions, is under scrutiny for alleged illegal operations in India.
The ED's investigation focuses on violations of Indian laws concerning gambling, as 1xBET operates betting activities classified as gambling, which is largely illegal or restricted under Indian law. The enforcement agency suspects the platform evades taxes and facilitates illegal betting on a massive scale, with estimates of over 22 crore (220 million) users engaged on various betting apps and significant revenue generation, possibly evading Rs 27,000 crore in taxes annually.
Former Indian cricketer Suresh Raina, known for his impressive career, is at the centre of this investigation. Raina, the fifth-highest run-scorer of all time in the Indian Premier League (IPL) with 5,528 runs in 205 matches, is reportedly a brand ambassador and endorser of 1xBET. The ED is trying to understand the link between Raina and the app, and if he has earned money through endorsement fees by promoting the application.
On Wednesday, Raina was questioned by the ED at their office in central Delhi. The primary questions posed to Raina include whether he verified the legal status of 1xBET, details of his contracts or payments related to the app, and if he participated in promotions across banned regions.
The ED has also questioned representatives of Google and Meta as part of the investigation. The Directorate General of GST Intelligence headquarters is empowered to direct intermediaries to block unregistered online money gaming platforms.
It's important to note that the primary responsibility for prevention, detection, investigation, and prosecution of crimes, including action on illegal betting and gambling, rests with the states and union territories. However, the Central government has issued a total of 1,524 orders to block online betting and gambling platforms in the last three years since 2022.
This investigation comes after an FIR was filed by 32-year-old businessman PM Phanindra Sarma at the Miyapur Police Station in Hyderabad, naming around 25 celebrities and influencers, including Suresh Raina, for their involvement in the promotion of illegal betting and gambling apps. Other celebrities named in the FIR include Rana Daggubati, Prakash Raj, Vijay Deverakonda, and Manchu Lakshmi.
Betting and gambling is a State subject under the Seventh Schedule of the Constitution, meaning that state legislatures have the power to legislate on matters related to betting and gambling. The online betting app market in India is worth over USD 100 billion and is growing at a rate of 30% according to experts.
As the investigation continues, the ED aims to ascertain the mode of communication between the two sides and the financial transactions linked to Raina's endorsement of 1xBET. Raina, with 322 international matches under his belt, scored a century and 39 fifties in his career, with the best score of 100*.
Stay tuned for more updates on this developing story.
- The Enforcement Directorate (ED) is examining Defi 1xBET's alleged violations of Indian gambling laws, as the app's betting activities are classified as largely illegal or restricted under Indian law.
- Google and Meta representatives have also been questioned by the ED as part of their investigation into the betting app 1xBET.
- The Directorate General of GST Intelligence headquarters has the power to direct intermediaries to block unregistered online money gaming platforms, in response to the ED's investigations.
- The total worth of the online betting app market in India is over USD 100 billion and has shown a growth rate of 30% according to experts.
- Suresh Raina, a brand ambassador and endorser of 1xBET, was questioned by the ED over his links to the app and his possible endorsement earnings, amidst allegations of illegal betting operations in India.
