Enforcement Directorate Targets Probo Media for Alleged Gambling and Money Laundering
ED Takes Action Against Probo Media Technologies
New Delhi: The Enforcement Directorate (ED) has initiated a crackdown on Probo Media Technologies Pvt. Ltd., the company behind the widely-used online gaming platform 'Probo', due to allegations of illegal gambling and money laundering.
Raids were executed on July 8 and 9 across four sites in Gurugram and Jind, Haryana, focusing on the firm and its founders, Sachin Subhaschandra Gupta and Ashish Garg, under the Prevention of Money Laundering Act (PMLA), 2002.
This investigation was prompted by numerous FIRs lodged in Gurugram, Palwal (Haryana), and Agra (Uttar Pradesh) under the Bharatiya Nyaya Sanhita (BNS), 2023, and the Public Gambling Act, 1867. Complainants claimed they were deceived into a fraudulent scheme that involved answering simple 'yes or no' questions, which the ED argues constitutes betting.
Investigators assert that the platform misleadingly presents itself as a skill-based 'opinion trading' game, yet its binary format, restricted to 'yes' or 'no' responses, aligns it with gambling, where results are determined by chance.
The ED has also identified significant irregularities in the company's practices, including non-compliance with KYC regulations, allowing minors to register, and running deceptive advertisements to attract new users. Alarmingly, the app was found to be promoting speculative betting on election results.
In a significant financial finding, the company reportedly received Rs 134.84 crore through preference shares from offshore entities located in Mauritius and the Cayman Islands. During the raids, the ED confiscated incriminating documents and digital evidence. Additionally, investments totaling Rs 284.5 crore in fixed deposits and shares were frozen, along with three bank lockers.
The ED's actions highlight increasing worries regarding the exploitation of digital gaming platforms as covers for illegal betting. With financial trails indicating foreign funding and high-stakes transactions, officials confirmed that a deeper investigation is ongoing to uncover the full scope of the money laundering operation.