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Stakeholders hail ED’s crackdown on Meta, Google; pushes for national framework
As the July 28 deposition date approaches, stakeholders are hopeful the ED’s move will set a precedent for tighter regulation and corporate accountability.
As the July 28 deposition date approaches, stakeholders are hopeful the ED’s move will set a precedent for tighter regulation and corporate accountability. (Image Source: MarketWatch)
The Enforcement Directorate’s (ED) ongoing probe into illegal online betting and gambling has gained strong backing from industry stakeholders and legal experts, as the agency intensifies scrutiny of tech giants Meta and Google for allegedly enabling advertisements for illegal gaming platforms.
Both companies failed to appear before the ED on July 21, citing the need for more time to gather documents. They have now been re-summoned for deposition on July 28. The summons are part of the ED’s investigation into whether the platforms have violated Indian laws by allowing promotion of illicit betting services—many of which are under probe for money laundering and tax evasion.
The All India Gaming Federation (AIGF) has expressed strong support for the ED’s actions, calling it a "significant and welcome step" that could lead to greater accountability in digital advertising.
“We have consistently raised concerns about the rampant promotion of illegal offshore betting and gambling platforms through online media. The ED’s summons to digital intermediaries is a much-needed push for compliance,” an AIGF spokesperson said.
AIGF emphasized the need for a comprehensive national regulatory framework, arguing that a system distinguishing between legitimate and illegitimate platforms is essential to safeguard consumers and uphold the rule of law.
Jay Sayta, a leading technology and gaming lawyer, noted that Meta and Google appear to have been summoned under Section 50 of the Prevention of Money Laundering Act (PMLA), 2002, but it's unclear whether they're being treated as witnesses or entities under suspicion.
“Intermediaries like Meta and Google are obligated to remove illegal gambling-related content under the IT Act. Failure to do so may expose them to criminal liability if safe harbour protections are lost,” Sayta said.
He added that while the companies may not be directly involved in betting operations, continued inaction in disabling flagged content could have serious legal repercussions.
Amrit Singh, President of the Skill Online Games Institute (SOGI), praised the ED's action while urging the government to move quickly on implementing the MEITY Rules for Online Gaming. These rules, though notified, are yet to be enforced.
“The distinction between Games of Skill and Games of Chance is constitutionally and legally significant. Without a proper skill-chance framework, platforms like Meta, Google, OTTs, and TV channels remain exposed to legal grey zones,” Singh said.
He explained that current ambiguity forces platforms to either block all gaming ads, accept all, or use discretionary judgments based on court certifications or blacklists. But even blacklists are undermined by tactics like domain farming, where banned platforms reappear under new names.
“For Meta, Google, and others to avoid promoting gambling unintentionally, MEITY must urgently implement a national framework that clearly defines permissible and non-permissible games,” Singh said.
The ED’s investigation includes high-profile platforms like Mahadev Online Book, and several celebrities and sportspersons are also under scrutiny for endorsing or promoting such services. The probe has revealed widespread misuse of digital advertising by illegal entities, costing consumers and the government crores in financial losses.
With over a dozen cases being examined across India, ED officials say their focus is not only on promoters of these platforms but also on intermediaries that may be complicit in their proliferation.
As the July 28 deposition date approaches, stakeholders are hopeful the ED’s move will set a precedent for tighter regulation and corporate accountability. However, they agree that lasting impact will only come through comprehensive laws, strict enforcement, and digital ecosystem-wide cooperation.
“This is not just about punishing a few violators—it’s about building a responsible, lawful, and consumer-safe online gaming environment,” the AIGF spokesperson said.
The Enforcement Directorate (ED) has also summoned prominent film actors Rana Daggubati, Prakash Raj, Vijay Deverakonda, and Lakshmi Manchu in connection with an ongoing money laundering investigation linked to illegal online betting and gambling platforms, official sources confirmed on Monday.
According to federal agency sources, all four celebrities have been issued notices to appear before the ED’s zonal office in Hyderabad over the next few weeks. Rana Daggubati (40) has been called for questioning on July 23, while Prakash Raj (60) is to appear on July 30. Vijay Deverakonda (36) has been summoned on August 6, followed by Lakshmi Manchu (47) on August 13.
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