NEW DELHI — In a crackdown on illegal online gambling, India’s financial crime agency, the Enforcement Directorate (ED), has exposed a large-scale betting operation linked to the “opinion trading” application Probo. The investigation has led to the freezing of assets totaling ₹284 crore, revealing a complex web of foreign funding and alleged deceptive practices.
The “Opinion Trading” Facade
At the heart of the scam, investigators found, was Probo’s clever disguise. The app presented itself as a platform for “opinion trading,” where users could answer “yes or no” questions on various topics, such as “Will India win the next cricket match?” However, the ED’s probe concluded that these seemingly innocent questions were, in reality, games of chance, indistinguishable from traditional gambling. This allowed Probo to operate as an illegal betting platform while attempting to circumvent regulations.
A Trail of Foreign Money
The investigation traced substantial financial inflows into Probo. The app reportedly received a staggering ₹134.84 crore in funding from foreign entities. These funds originated from offshore locations, including Mauritius and the Cayman Islands, raising questions about the source and purpose of the investments. Authorities are now scrutinizing these international financial connections as part of the ongoing probe.
Serious Lapses in User Protection
A critical finding of the ED’s raid was Probo’s alarming lack of essential user safeguards. The app allegedly failed to implement Know Your Customer (KYC) verification processes, which are standard requirements to identify users and prevent financial crimes. More concerning, there were no measures in place to stop minors from accessing and participating in the “opinion trading” activities, potentially exposing underage individuals to gambling. Furthermore, the app was found to be using misleading advertisements to lure new users, obscuring the true nature of its operations.
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The Aftermath: Assets Frozen and Records Seized
Following the raids, the Enforcement Directorate moved swiftly to freeze significant assets connected to the Probo app. This included investments worth ₹284.5 crore held in fixed deposits and shares. Additionally, three bank lockers associated with the operation were frozen. Investigators also seized a trove of incriminating documents and digital records, which are expected to provide further insights into the scale and mechanics of the alleged illegal betting scheme.