The Enforcement Directorate (ED) has uncovered a massive ₹1000 crore cricket betting scam involving an online application called “Magicwin.”
The agency’s investigation has revealed a complex web of illegal activities, including money laundering, illegal broadcasting of cricket matches, and involvement of Pakistani nationals and Bollywood celebrities.
ED Raids Across Multiple Cities
On December 10-12, 2024, the ED conducted searches at 21 locations across Ahmedabad, Surat, Bangalore, Lucknow, Delhi, Mumbai, and Pune as part of its probe into the Magicwin betting app case. The agency seized the operator’s office of Magicwin and recovered ₹3.55 crore in cash. Additionally, bank funds totaling approximately ₹30 lakh were frozen.
The searches were carried out under the provisions of the Prevention of Money Laundering Act (PMLA), based on an FIR registered by the Cyber Crime Police in Ahmedabad. During the raids, the ED seized various incriminating documents and digital devices related to the case.
Pakistani Ownership And Dubai Operations
The ED’s investigation has revealed that while the Magicwin website is operated from Dubai, it is actually owned by Pakistani nationals. The betting activities, including deposits, placing of bets, and withdrawals, are controlled by the owners based in Dubai and Pakistan.
The agency found that the betting games shown on the Magicwin website are originally played in countries like the Philippines, where betting activities are legal. However, these games are re-telecasted on the Magicwin platform by copying the APIs (Application Programming Interfaces) of the original games.
Money Laundering And Shell Companies
One of the most concerning aspects of the Magicwin scam is the elaborate money laundering operation uncovered by the ED. The agency has found that more than 50 bogus companies and over 100 fake bank accounts were used to route the illicit funds.
The money deposited by players and bettors into bank accounts linked to the Magicwin website was diverted through various layers of shell and mule bank accounts. The profits were then invested in crypto assets, withdrawn in cash, or sent to Dubai through hawala channels.
The ED’s investigation revealed that the winning amounts of players and bettors were transferred to their respective bank accounts through merchant accounts of various shell companies maintained with payment gateways and aggregators. These transactions were also carried out through Domestic Money Transfer (DMT) services.
Bollywood Celebrities Under Scanner
In a startling revelation, the ED found that Magicwin had hosted a launch party in India attended by several Bollywood celebrities who endorsed the platform. These celebrities allegedly participated in video and photo shoots for Magicwin advertisements and promoted the app on their social media accounts.
The agency is now scrutinizing the involvement of these high-profile individuals in the betting operation. There are many names involved, but currently, the officials are questioning Indian actresses Mallika Sherwat and Pooja Banerjee for their involvement in endorsing this app.
Illegal Broadcasting Of Cricket Matches
Apart from the betting activities, Magicwin is also accused of illegally broadcasting cricket matches, including the Men’s T20 World Cup. This unauthorized streaming caused significant financial losses to those who held the legitimate broadcasting rights for these events.
The ED’s probe has uncovered that the website’s promotional activities involved top Bollywood celebrities, actors, and cricketers who promoted it by sharing videos and photos on their personal social media accounts. Reports suggest that these celebrities were paid substantial amounts for their involvement.
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Conclusion: The Magicwin Betting App Scam Of ₹1000 Crores Is Under The Radar Of ED
The Magicwin betting app scam has exposed the dark underbelly of online gambling and its connections to money laundering, illegal broadcasting, and high-profile endorsements. As the ED continues its investigation, more details are likely to emerge about the extent of this ₹1000 crore operation and its impact on the world of cricket and entertainment.
The case serves as a stark reminder of the need for stricter regulations and monitoring of online betting platforms, especially those with international connections. It also highlights the importance of responsible endorsements by public figures and celebrities, who wield significant influence over their followers.
As the probe progresses, it remains to be seen how many more individuals and entities will be implicated in this far-reaching scandal that has sent shockwaves through the worlds of cricket, entertainment, and finance.
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