Media agencies face probe in Rs 110-crore Parimatch case

The illicit betting platform Parimatch, based in Cyprus, has been the target of a stepped-up operation by the Directorate of Enforcement (ED), which has also placed media and advertising organizations under investigation for their involvement in surrogate campaigns in India.

On August 12, the ED froze around ₹110 crore in mule bank accounts connected to money laundering activities in a massive investigation that took place in several locations, including Mumbai, Delhi, Noida, Jaipur, Surat, Madurai, Kanpur, and Hyderabad. Key documents, digital gadgets, and over 1,200 credit cards were confiscated. According to investigations, Parimatch transferred customer monies via mule accounts, hawala networks, and cryptocurrency wallets. Withdrawals made in Tamil Nadu were subsequently changed into USDT cryptocurrency via wallets located in the UK.

The investigation reveals that aggressive surrogate advertising and finance networks were both responsible for Parimatch's quick rise to prominence in India. Through celebrity endorsements, brand extensions under "Parimatch Sports" and "Parimatch News," and sponsorship of sporting events, the platform was able to get beyond gambling prohibitions. Concerns regarding the role of local advertising corporations were raised when it was revealed that payments to Indian agencies in charge of these ads were made via foreign inward remittances.

A central regulatory framework is urgently needed to stop offshore gaming and promote compliant Indian companies, according to industry associations. According to reports, the illegal gambling economy in India is estimated to be worth over $100 billion a year, with over 80% of the 500 million players' gaming expenditures currently going to offshore platforms.

A number of influencers, celebrities, and even former cricket players are being investigated for endorsing these services.