ED probing Vijay Deverakonda, Rana, Prakash Raj over betting apps endorsements

The Enforcement Directorate (ED) has filed a money laundering case to look into the role of more than two dozen celebrities, including actors like Vijay Deverakonda, Rana Daggubati and Prakash Raj as part of a money laundering probe against certain online betting platforms, reports said.

The 29 celebrities include film actors, influencers, and YouTubers, who have been accused of violating the Public Gambling Act, 1867, by promoting such gambling apps.

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Betting apps probe

The action was reportedly based on five FIRs filed in the Telugu states of Andhra Pradesh and Telangana. The federal agency has filed a case under the Prevention of Money Laundering Act (PMLA).

It is said that the betting apps are alleged to have generated "illicit" funds worth crores of rupees through illegal betting and gambling.

The celebrities involved reportedly endorsed or appeared in promotional material for these apps, which have since come under scrutiny for duping users and violating betting regulations.

PTI, quoting sources, said the celebrities are suspected of having “endorsed" online betting platforms such as Junglee Rummy, JeetWin, and Lotus365 in exchange for endorsement or celebrity fees.

Celebrity endorsements

The ED's Enforcement Case Information Report (ECIR) has been filed under relevant sections of the Bharatiya Nyay Sanhita (BNS), Telangana Gaming Act, and the IT Act.

The ED move follows a complaint filed by businessman Phanindra Sarma, who alleged that celebrity endorsements misled financially vulnerable users, leading to significant losses.

According to the complaint, these influencers were paid significant amounts to endorse betting apps that entice users to gamble their money, many of which masqueraded as skill-based games but allegedly facilitated gambling under the radar.

Some of the promotions were reportedly disguised as entertainment or social service, drawing public ire and triggering police complaints from individuals who claimed to have suffered financial losses.

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Stars respond

Several of them have earlier issued statements denying any wrongdoing, maintaining they terminated endorsement deals upon learning of the ethical and legal concerns.

Defending his association with an app, Deverakonda said it was a skill-based platform and did not promote illegal betting.

According to TOI, actor Rana Daggubati clarified through his legal team that his collaboration with a gaming app ended in 2017, and all promotions were confined to legally permitted regions after proper vetting.

Prakash Raj admitted to endorsing Junglee Rummy in 2016, but added that the contract was terminated within a year. “It was legally sound but did not align with my ethical values," he was quoted as saying by the news agency.

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Investigation underway

About the 29 celebrities, including Vijay Deverakonda, Rana Daggubati, Prakash Raj, the accused list features several other prominent names from Tollywood, the Telugu film industry, including Manchu Lakshmi, Nidhi Agarwal, Pranitha Subhash, and Ananya Nagella.

The ED is expected to record their statements in the coming days even as it is collecting more FIRs and looking for more complainants who were duped or cheated by these betting platforms.

The investigation is currently focused on tracking the proceeds of the crime and determining the exact role of each individual.

A comprehensive investigation reportedly is underway to find the estimated amount of the "proceeds of crime" generated by these apps and the exact role of the celebrities.