ED’s Actions Against Real Money Gaming Firms: An Overview
The Enforcement Directorate (ED) has taken significant steps to investigate numerous real money gaming companies in Kolkata, spotlighting the growing concerns around illegal online betting and money laundering. This crackdown appears intricately linked to social media influencer Anurag Dwivedi, who has allegedly played a crucial role in promoting these illicit activities.
Search Operations Unfold
The ED has recently conducted searches at several well-known online gaming entities, including PlayerzPot, Vision11, Gameskraft, and My11Circle (owned by Games 24×7). These searches are part of a broader investigation into payments made to Dwivedi for brand endorsements across various digital platforms. Sources indicate that the agency is keenly scrutinizing the legitimacy of funds paid to him amidst allegations of promoting illegal betting operations in India.
Wider Implications for the Industry
Sources within the gaming firms confirmed the ED’s actions but stated their commitment to cooperating fully with the investigation. They emphasized that all transactions with Dwivedi were part of legal agreements aimed at brand promotion. The firms maintain their stance on compliance with relevant regulations, underlining a growing concern within the industry regarding the scrutiny of influencer marketing strategies in the online gaming sector.
The Broader Investigation Landscape
This investigation against Dwivedi aligns with a larger probe into money laundering under the Prevention of Money Laundering Act (PMLA). The ED has accused him of generating substantial proceeds from promoting illegal online betting platforms like Sky Exchange. Operating such platforms is currently prohibited under Indian law, escalating the urgency and seriousness of the investigation.
Seizures and Assets Frozen
In a decisive move, the ED executed simultaneous searches at ten locations across Uttar Pradesh’s Lucknow and Unnao, as well as in Delhi. During these raids, a notable haul included the seizure of luxury vehicles such as a Lamborghini Urus, BMW Z4, and a Mercedes-Benz, with a total value surpassing ₹4 crore. Additionally, ₹20 lakh in cash was recovered, and approximately ₹3 crore in bank balances, fixed deposits, and insurance policies were frozen.
Uncovering Cross-Border Activities
The investigation revealed more than just financial irregularities. Officials found documents and digital devices suggesting that investments were being funneled into real estate in Dubai, allegedly via hawala channels. The presence of papers detailing overseas property investments using dubious funds raises alarms about cross-border money laundering activities, signaling the complexity and vast reach of this case.
From Local Investigations to Broader Concerns
The ED’s inquiry began following a local police case in West Bengal, which implicated several individuals in operating illegal online betting from Siliguri using mule bank accounts and digital communication channels like Telegram. Dwivedi’s role has been described as both “active and significant," as he allegedly created promotional content steering users toward illegal betting platforms.
The Role of Influencer Marketing Scrutinized
What’s particularly striking about this investigation is its focus on influencer marketing within the regulated real money gaming sector. This marks a unique moment where marketing expenditures related to influencers are being examined for their potential ties to illicit funds. The ED’s actions could set precedents that may reshape how gaming companies engage with influencers in future promotional efforts.
The Flight of Anurag Dwivedi
In a puzzling development, the ED announced that Anurag Dwivedi has left India and is now residing in Dubai. Multiple summons issued to him have been ignored, raising questions about accountability and the effectiveness of international cooperation in such investigations. So far, the agency has frozen or attached movable assets worth ₹23.7 crore and has arrested three individuals as part of its efforts to unravel this complex case.
This situation illustrates a critical juncture for both law enforcement and the gaming industry, highlighting the need for greater regulatory clarity and compliance frameworks moving forward. The ED’s investigation underscores an evolving landscape where digital marketing, influencer engagement, and gambling intersect—a convergence that could significantly impact how businesses operate in this lucrative yet risky domain.