Unlawful Gambling Applications Controversy: Deverakonda Interrogated by Enforcement Directorate
Actor Vijay Deverakonda was questioned by the Enforcement Directorate (ED) in Hyderabad for over four hours on August 6, as part of a larger crackdown on online gambling platforms that violate Indian law. This investigation follows a series of questions and investigations directed at several prominent Indian celebrities, including former cricketer Suresh Raina, actors Rana Daggubati, Prakash Raj, and Manchu Lakshmi Prasanna, and Bollywood actress Urvashi Rautela.
Suresh Raina was questioned regarding his endorsement and ambassador role for illegal betting app 1xBet, and its surrogate platforms like 1xBat. He was grilled about his contracts, payments, awareness of the apps’ illegality under Indian law, and promotion activities even in states banning online betting.
Rana Daggubati was questioned for nearly five hours by the ED in Hyderabad. He maintained he endorsed only skill-based gaming platforms, though authorities are examining financial transactions related to illegal betting app promotion. Prakash Raj, Vijay Deverakonda, and Manchu Lakshmi Prasanna have also appeared before the ED to face questioning about their endorsements, contracts, and remuneration linked to betting app promotion. These four, along with about 25 others including influencers and YouTubers, were booked under the Telangana Gaming Act and IT Act for promoting illegal gambling.
The crackdown originates from a March 2025 FIR filed by businessman PM Phanindra Sarma, who flagged the issue of celebrities endorsing illegal betting apps through social media, leading to financial harm especially among vulnerable communities. The apps promoted often masquerade as "skill-based gaming" but are considered gambling under Indian law, making them illegal.
Legal status of these gaming apps:
- Platforms like 1xBet, Lotus65, FairPlay, and 1xBat are alleged to be illegal betting apps, banned under Indian law as gambling, not skill-based games.
- The Indian Public Gambling Act of 1867, Telangana Gaming Act, and IT Act provisions like Section 66(D) (dealing with cheating and identity theft) are invoked in investigations.
- Enforcement agencies are treating celebrity endorsements as facilitating illegal betting activities and potential money laundering under the Prevention of Money Laundering Act (PMLA).
While some celebrities defend their endorsements as limited to legal skill-based games, investigative agencies continue to probe the contracts, payments, and knowledge about the true nature of these platforms' operation. Vijay Deverakonda, for instance, has stated that he was not involved in any betting promotion and worked with a legal skill-based gaming app, A23. He also differentiated between gaming apps and betting apps, stating that gaming apps are legal.
The investigation is not limited to these celebrities, as the ED is investigating 29 celebrities who may have promoted betting platforms. The ED is also looking into money from app sponsorships. Prakash Raj, in his defence, stated that he stopped promoting one app after learning it was not right. Rana Daggubati and Manchu Lakshmi are expected to meet ED soon.
It is now up to the court and the government to decide what's legal and what's not. Vijay Deverakonda reiterated that he has done nothing wrong and followed all the rules. The actor has fully cooperated and shared everything the ED asked for, including bank records, contracts, and other details. The Supreme Court has stated that skill-based games like A23 are legal.
Vijay Deverakonda asked the media to write correct headlines and not mix up gaming and betting. He also pointed out that gaming apps sponsor sports like cricket and kabaddi, while betting apps are illegal. The app he promoted, A23, does not work in Telangana due to location settings, demonstrating its compliance with state laws.
The ED is investigating money laundering and tax evasion through celebrity promotions and digital ads. The investigation started from police reports filed in Telangana, claiming that some actors and influencers promoted apps used for online betting. Urvashi Rautela is also under investigation for promoting such apps.
In summary, multiple high-profile Indian celebrities from cricket and film industries are under investigation for promoting illegal betting apps, which are considered unlawful gambling platforms by Indian authorities. The investigations focus on money laundering, unauthorized betting promotion, and misleading endorsements that harm vulnerable users financially.
After celebrity Vijay Deverakonda was questioned by the Enforcement Directorate (ED) for promoting a gambling app, other celebrities like Suresh Raina, Rana Daggubati, Prakash Raj, Manchu Lakshmi Prasanna, and Urvashi Rautela have also been questioned about their endorsements of such apps. The sports and entertainment industries are under scrutiny for their involvement in these illegal gambling platforms.
The court and government are deciding on the legality of skill-based gaming apps like A23, which Vijay Deverakonda endorsed, while investigations continue into money laundering and tax evasion related to celebrity promotions and digital ads of these unlawful betting platforms.
