Ban in 7 states … Expert said – money laundering, till possible funding | Money Laundering- Suspect of Terror Funding; Yet in a year, the earnings of such platforms increased by more than 150%

0
18

Fed up with Ads? Install Dainik NewsBust India app for news without ads

10 minutes ago

  • Copy link

Online gaming has increased people’s troubles.

See the players’ states and choose a dream team … or show the skill of the cards … and win millions of crores daily! Some such sentences are used in the promotion of fast-growing fantasy sports platforms in India.

This offer is as intriguing as it is disputed. In India, 7 states Andhra Pradesh, Telangana, Tamil Nadu, Odisha, Assam, Nagaland and Sikkim have banned any online gaming or betting, saying that the trend of gambling under its guise is increasing.

People are committing suicide due to its addiction. The Tamil Nadu government has told the Madras High Court that 30 such cases of suicide have been reported in the state. Anuj Aggarwal, chairman of the Center for Research on Cybercrime and Cyber ​​Law and Mukesh Chaudhary, CEO of CyberOps InfoSec, even say that many of these platforms can be involved in money laundering. Anuj Aggarwal believes that they can also be used in Terror funding. Nevertheless, the Union Ministry of Information Technology believes that states have the right to impose sanctions under the Gambling Act.

Here, the income of these platforms has also increased incredibly. According to industry estimates, earnings have grown by more than 150% in the last 1 year. Today the industry is worth 16500 crores. Currently, bets are placed on such platforms as Rummy, Poker, Cricket, Football, Hockey, Basketball, Baseball and Rugby.

Prize money up to 1 crore on anonymous matches

In a case caught a few days ago, the foreign league that was betting on it was actually a match going on at a farm in Mohali. There is no evidence of small county matches involved in online gaming. Spain’s club cricket match also has prize money up to 1 crore.

Money laundering possible using foreign gateway

The pool of prize money is made up of the entry fees of the participants. Due to lack of monitoring of user database, money laundering can be done here as fake users like fake investors of finance companies. Foreign gateway is used in transactions. Data can also be misused.

Chinese companies invest

Chinese company Tencent was invested in PUBG, which was among the banned mobile apps due to Chinese investment. Many Chinese companies, including Tencent, are also invested in some such platforms operating in India.

Skepticism in the US

These platforms are valid in many US states. But the new IRS rule states that the entry fees of such platforms can reflect the amount of gambling in the tax return. This means that these platforms are gambling.

Controversy over advertisement too

On a PIL filed on 3 November, the Madras High Court issued a notice to celebrities promoting such platforms. They have been accused of promoting lotteries.

Earnings increased by 1550 crores

According to industry estimates, the total revenue of the platforms increased from 920 crore in March 2019 to 2470 crore by March 2020. In 2019-20, only one platform spent Rs 785 crore on advertising and promotion.

Allegations of insider trading

A fraud case occurred on two gaming platforms in Kentucky, USA. It was alleged that the personnel of one platform participated as players on the other platform. These employees continued to win due to collusion.

In the realm of doubt: In a cricket or football game, the contestant makes 11 select teams out of 22 options. Even if there are one lakh participants, more than 12.90 crore combinations (teams) can be formed from 22 options in statistics rules. Any platform can manipulate the results to create a better combination of the highest score.

Appeals pending in the High Court are pending in the Supreme Court

A Supreme Court decision of 1957, Senior Advocate Virag Gupta of the Supreme Court, considered competition based on legal efficiency as distinct from ‘gambling’. Based on this, in 2017, a platform has won the case in the Punjab-Haryana High Court and then the Supreme Court. However, the appeals against the two petitions rejected in the Bombay and Rajasthan High Court against these platforms are pending in the Supreme Court.

LEAVE A REPLY

Please enter your comment!
Please enter your name here