This strategic move is a clear indication of the government’s persistent commitment to combating illicit betting apps.
The Ministry of Electronics and Information Technology (MeitY) initiated this crackdown in response to a request from the Enforcement Directorate (ED) amid an ongoing investigation into suspected money laundering activities within India.
In April, MeitY implemented fresh regulations under the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) to ensure that only legally sanctioned online real-money games could operate in India. However, the appointment of regulatory bodies to oversee these games is still pending.
Mahadev Book
Among the blocked apps is Mahadev Book, currently under ED investigation for its alleged involvement in an illicit betting syndicate offering a variety of live games, such as poker, cricket, football, badminton, tennis, and more.
The ED’s investigation was triggered by a statement regarding a ‘cash courier,’ which suggested that Chhattisgarh Chief Minister Bhupesh Baghel received Rs 508 crore ($61m) from the app promoters based in the UAE.
Rajeev Chandrasekhar, the Union Minister of Chhattisgarh State for Electronics and Information Technology, emphasized that the state government holds the authority to recommend the shutdown of such websites or apps under Sec 69A of the IT Act. However, the sole request for action originated from the ED.
As a result of the investigation, the proprietors of Mahadev Book are currently in custody. Among the accused are Bhim Singh Yadav, a constable in the Chhattisgarh Police Force, and Asim Das. They have been apprehended under the Prevention of Money Laundering Act (PMLA) for alleged money laundering offenses.
This development arises against the backdrop of previous challenges faced by Indian authorities in curbing illegal betting and regulating the market. In July 2023, the Goods and Service Tax Council in India opted to levy a 28% goods and service tax on online gaming, horse racing, and online casinos.
The decision to tax both skill-based and chance-based games garnered mixed reactions. While some viewed it as a potential setback for Indian players with possible legal implications, others saw it as a crucial step in curbing the escalating influence of illegal offshore platforms in the country.
Furthermore, Indian authorities continue to grapple with the issue of addressing illicit betting activities. In a notable incident, the Goa police arrested three individuals for their alleged participation in illegal betting activities linked to the World Cup cricket match between India and Afghanistan.
