Meta and Google Skip ED Summon for Betting Probe, Fresh Summons Issued

Meta and Google executives skipped ED summons on July 21 in a money laundering case linked to online betting and gambling platforms. They were given fresh summons for July 28 to depose and record their statements under the Prevention of Money Laundering Act. The ED is probing illegal platforms and has called several individuals, including actors and celebrities, to understand how such platforms can operate.

The Enforcement Directorate (ED) has re-summoned executives from tech giants Meta and Google to appear before it on July 28 in a money laundering case linked to illegal online betting and gambling platforms. The executives were initially scheduled to depose on July 21 but requested an extension to gather relevant information and documents [2].

The ED is investigating multiple platforms hosting illegal betting and gambling links, including instances of advertisements placed for them on various Internet-based social media outlets and app stores. The federal agency is also probing the role of actors, celebrities, and sports persons in promoting these illegal platforms [1][3].

The ED has said that illegal online betting and gambling platforms are cheating innocent people of their hard-earned money and laundering and evading taxes worth crores of rupees. The agency has identified several benami accounts involved in the transfer of betting funds and has issued over 1,400 blocking directions related to online betting/gambling/gaming websites between 2022 and 2025 [3].

The tech giants are being called to understand how such illegal platforms can place advertisements on their social media and communication links. The ED is also seeking records from these companies as part of its probe [1][3].

The case is significant given the scale of the online betting market in India, with estimates suggesting that around 22 crore (220 million) users are currently engaged on various betting apps, and 11 crore (110 million) of these are regular users [3]. The online betting market in India is suspected to be worth around $100 million, with top betting apps evading ₹27,000 crore in taxes every year [3].

The ED's investigation is part of a broader effort to crack down on illegal online betting and gambling platforms, which have been operating despite government advisories and legal restrictions. The federal agency is working to ensure compliance with laws and regulations and to protect consumers from financial fraud and tax evasion [1][3].

References:
[1] https://www.telegraphindia.com/business/ed-summons-meta-google-representatives-in-money-laundering-probe-linked-to-illegal-online-betting-platforms/cid/2114041
[2] https://m.economictimes.com/news/india/meta-google-officials-fail-to-depose-before-ed-called-again-on-jul-28/articleshow/122812987.cms
[3] https://www.hindustantimes.com/india-news/ed-summons-google-meta-as-part-of-illegal-betting-probe-101752952023287.html