Ban on Betting apps by Central Government

Ministry of Electronics and Information Technology (MeitY) issued blocking orders against 22 illegal betting apps and websites.

Key Highlights-

• The Enforcement Directorate (ED) conducted raids on Mahadev Book in Chhattisgarh for alleged money laundering under the Prevention of Money Laundering Act (PMLA).
• Illegal Betting websites including ncluding Mahadev Book Online and Reddyannaprestopro have been banned, at the Enforcement Directorate's request, following an investigation into illegal betting app syndicates.

Online Betting Apps:

• Potential
  • Convenience and Accessibility: Online betting apps offer the convenience of placing bets from anywhere, at any time, using smartphones or other devices connected to the internet.
  • Entertainment and Enjoyment: For many users, these apps provide a form of entertainment, allowing them to engage in sports betting, online casinos, and other forms of gambling.
  • Potential Economic Opportunities: Some individuals consider online betting as a way to earn money or gain profit through strategic gambling.
  • Technological Advancements: These platforms leverage cutting-edge technology, offering a user-friendly interface, live streaming, and a wide array of betting options, creating an engaging experience for users.
• Risks:
  • Addictive Nature: The convenience of these apps might lead to addiction and compulsive behavior, resulting in financial loss, strained relationships, and adverse

mental health impacts.

• Illegal Activities: There have been instances where illegal betting operations occur through unregulated apps, leading to money laundering and other illicit activities.
• Financial Risks: Users can incur substantial financial losses due to the addictive and high-risk nature of gambling, leading to potential debt and financial instability.
• Regulatory Concerns: Regulatory frameworks and oversight vary across different jurisdictions, leading to concerns about the lack of uniform standards and consumer protection
  
  

  Enforcement Directorate (ED): It was established as ‘Enforcement Unit’ in 1956 under the Department of Economic Affairs, for handling Exchange Control Laws violations under the Foreign Exchange Regulation Act (FERA). Today, Directorate of Enforcement is a Multi-Disciplinary Organization mandated with the task of enforcing the provisions of two special fiscal laws – Foreign Exchange Management Act, 1999 (FEMA) and Prevention of Money Laundering Act, 2002 (PMLA). Whenever any offence is registered by a local police station, which has generated proceeds of crime over and above 1 crore, the ED steps in. The ED can also carry out search (property) and seizure (money/documents) if it suspects money has been laundered. Since the PMLA was enacted only in 2005, any ill-gotten property acquired before the year 2005 has no case under PMLA.