The Enforcement Directorate (ED) conducted searches at 17 locations across the country allegedly linked with Parimatch, a Cyprus-based illegal online betting platform, seizing Rs 1.2 crore in cash and freezing Rs 3.8 crore in bank balances. The action was part of its money laundering probe into an alleged betting racket that generated over Rs 3,000 crore annually.
Modus Operandi of the Alleged Racket
According to the ED, the platform allegedly duped users and investors through illegal betting operations while concealing the movement of funds through a sophisticated network of mule accounts, payment intermediaries, and financial inclusion channels. In several instances, withdrawals made by users (game winners) were allegedly settled not directly from accounts controlled by the betting platform but through deposits made by other users who paid to play the game through UPI IDs and other payment options. The ED said this mechanism helped conceal direct links from the platform to users and fund transfers. It suspects the roles of payment aggregators in such transactions.
Routing of Funds Through Legitimate Entities
The ED probe found that user deposits and payouts were routed through multiple current accounts opened in the names of software, fintech, and technology-related entities involved in legitimate business activities. The agency alleged that these accounts were used to process betting-related collections and payouts under the guise of vendor payments, business transactions, and payment gateway services. The ED found that Parimatch operators misused government-provided payment mechanisms for fund transfers, including banking correspondent networks, Grahak Seva Kendras, mobile money transfer agents, cash management services (CMS), along with local grocery stores and retail outlets.
Use of Hawala Channels for International Transfers
The ED alleged that certain agents diverted cash received through CMS channels and adjusted it against RTGS transfers sourced from deposits made by Parimatch users. The cash was then allegedly transferred outside India through hawala channels. Investigators claimed that unlike many betting platforms, Parimatch relied heavily on hyperlocal marketing strategies to expand its customer base.
Surrogate Advertising and Sponsorships
The agency alleged that the platform promoted itself through surrogate advertisements under the names ‘Parimatch Sports’ and ‘Parimatch News’, while sponsoring local cricket leagues across more than 15 states, as well as hockey and football tournaments. The platform also allegedly used quick commerce apps and grocery delivery networks to circulate betting-related promotional material to customers. According to the ED, advertisements were strategically displayed during app usage and order placements to attract and onboard new users to the betting platform.
