India’s Directorate of Enforcement (ED) has been forced to issue a fresh summons to tech giants Google and Meta after executives from both companies failed to appear before the agency on Monday.
The ED is investigating online betting and potential money laundering and wanted to meet company representatives to discuss digital advertisements that both platforms had carried which may have promoted some of the apps and services under investigation.
Why Are Google And Meta Part Of A Betting Investigation?
Placements for sports betting and online casinos appear regularly on both platforms worldwide but the ED suspects that the tech firms may not have employed a thorough enough system of vetting advertisers who have been targeting the market in India.
Officials from Google and Meta had asked for more time to carry out their own internal audit and collect the documentation and information that the ED has requested, although neither has commented publicly regarding the ongoing investigation.
The ED is now expecting both to comply with the July 28 summons and be prepared to have their statements recorded under the Prevention of Money Laundering Act (PMLA).
The financial crimes agency has also been looking into media companies who may have received money from operators under investigation, as well as any role played by celebrity endorsers.
The suspicion is that betting operations from outside of the country or previously banned have been using Indian platforms.
India’s Crackdown On Betting-Related Promotions
In 2023 the Ministry of Information and Broadcasting had felt compelled to issue advisory notices against airing betting-related promotions to written and broadcast media organizations as well as digital news outlets, social media channels and online giants such as Google and Facebook.
While online casino and sports betting apps are popular worldwide, the industry is still in its infancy in India and operates under state-specific licencing, with very few areas allowing gambling at premises.
A big exception is Goa which has several casinos that contribute to the state’s revenue and help boost tourism and employment in the region.
While physical buildings are easy to regulate, the online market is open to abuse.
Speaking to the English-language daily newspaper Hindustan Times, an officer for the ED confirmed that several betting operations were under scrutiny.
“These platforms are in violation of multiple laws and directions by the Indian government, including tax evasion, money laundering, and Foreign Exchange Management Act (FEMA) as money is transferred out of the country illegally.
An Estimated 220 Million Indian Users Of Betting Apps
“It is estimated that around 22 crore (220 million) Indian users are currently engaged on various betting apps, and 11 crore (110 million) of these are regular users.”
Another official said that the Indian government had issued 1,410 blocking directions relating to online betting, gambling and gaming websites and mobile applications from 2022 up to February of this year.
Several Indian actors and producers have been summoned to appear before the agency to explain betting-related promotional material that ran on their social media channels.
Among those asked to report to regional offices are actor and producer Rana Daggubati, Prakash Raj, Vijay Deverakonda and actress Lakshmi Manchu.
Jim Munro is a betting industry and gambling expert who has been a national newspaper journalist for over 25 years, predominantly at The Sunday Times and The Sun, where he wrote a weekly soccer betting column. Jim also worked on the launch of Virgin Bet with Gamesys and was subsequently head of editorial at LiveScore, the sports media and betting group.
