Financial Crime Crackdown: ED Summons Google, Meta Executives in Money Laundering Probe Linked to Betting App Ads
India’s Enforcement Directorate (ED) has summoned top executives from Google and Meta over alleged money laundering via betting app advertisements. Hearings are scheduled today as scrutiny intensifies.
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India’s Enforcement Directorate (ED) has escalated its investigation into alleged money laundering schemes linked to online betting applications, summoning senior executives from Google and Meta (formerly Facebook) for questioning. The inquiry, focused on the advertising ecosystem used by betting platforms, has brought Big Tech under direct scrutiny for allegedly facilitating the promotion of illegal gambling apps.
With hearings scheduled today, the case marks a significant turning point in India’s regulatory approach to digital financial crimes, setting the stage for possible legal precedents involving online platforms and their advertising policies.
Background: The Rise of Betting Apps and Grey Market Advertising
Over the past few years, India has witnessed a boom in real-money gaming and betting apps, many of which operate in a legal grey area. Despite state-level bans on online gambling, foreign-based operators have exploited loopholes to target Indian users through aggressive ad campaigns—many of which were hosted across major platforms like Google Ads and Meta’s advertising network.
According to officials from the Ministry of Electronics and Information Technology (MeitY), these apps often use shell companies, cryptocurrency, and proxy servers to evade Indian laws while siphoning off profits abroad—amounting to hundreds of crores in alleged illicit transfers.
The Enforcement Directorate’s Investigation
The ED initiated the probe after uncovering a network of betting apps funnelling money through digital wallets, payment gateways, and international bank accounts. Sources familiar with the investigation confirmed that Google and Meta’s ad networks were key channels through which these apps reached Indian consumers.
As part of its ongoing case under the Prevention of Money Laundering Act (PMLA), the ED has reportedly identified:
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Dozens of betting platforms advertised through sponsored campaigns
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Revenue-sharing deals with ad agencies and intermediaries
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Inadequate ad policy enforcement that allegedly enabled illegal financial activity
According to a report by LiveMint, the ED has issued notices to the legal and compliance heads of both tech giants, seeking clarity on their advertising approval processes, KYC verification for ad clients, and measures taken against flagged content.
What the Summons Mean for Google and Meta
This is not the first time Google and Meta have faced regulatory heat in India, but it is the first instance where senior officials have been summoned in connection with a financial crime investigation.
Legal experts suggest the summons are an indicator of the ED’s growing assertiveness in holding digital intermediaries accountable. While both companies have previously stated their commitment to following Indian laws, they now face detailed questioning regarding:
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Ad approval workflows
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Client vetting mechanisms
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Data sharing practices with law enforcement
A spokesperson for Meta told The Economic Times that the company “prohibits ads promoting illegal gambling services and cooperates with law enforcement,” while Google reiterated that it has “strict ad policies” and will fully support lawful investigations.
The Bigger Picture: Global Attention on Digital Ad Responsibility
Globally, regulators are beginning to scrutinize how tech platforms facilitate potentially unlawful activity through advertising. In the U.K., the Gambling Commission has flagged concerns about targeted gambling ads reaching vulnerable users via algorithmic placements. In the U.S., several states have sued tech firms for failing to restrict fraudulent crypto and betting promotions.
India’s ED action aligns with these trends, underscoring the need for stricter ad ecosystem governance, especially in sectors like gaming, finance, and health.
Moreover, the case brings new urgency to the Indian government’s efforts to regulate digital advertising more aggressively, with a draft bill under consideration by MeitY that would require greater transparency, mandatory disclosures, and ad content audits for large platforms.
Tech Industry Reactions
Industry stakeholders have expressed mixed reactions. While some see the ED’s move as necessary to curb financial crimes, others worry about possible overreach and chilling effects on digital advertising.
Rajesh Bhattacharya, a policy analyst at the Digital India Foundation, noted:
“This case could set an important precedent. Platforms will have to strengthen their ad compliance teams and redefine what constitutes due diligence.”
Ad tech experts also suggest that this may prompt companies to build more robust onboarding processes, including KYC verification for advertisers in sensitive sectors like real-money gaming and finance.
Implications for Advertisers and Agencies
Digital marketing agencies that handled these campaigns may also be investigated. The ED is reportedly compiling a list of media buying agencies and ad resellers that facilitated these ads for betting operators. This includes:
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Ad tech vendors
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Affiliate marketers
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Influencer marketing agencies promoting such apps
Many of these players may not have conducted due diligence or were unaware of the final use of their inventory—a gap the ED seems intent on closing.
What's at Stake?
The financial and reputational stakes are high. If the investigation confirms that Google and Meta’s platforms were misused with inadequate oversight, the companies could face:
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Hefty financial penalties
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Policy mandates to monitor high-risk sectors more aggressively
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Increased content takedown and reporting obligations
For the broader industry, this could also lead to cascading compliance requirements, especially for foreign platforms operating in India, as regulators push for greater accountability under the IT Rules 2021 and the Digital India Act, currently in draft stages.
Conclusion
Today’s hearings with senior executives from Google and Meta could be pivotal in shaping India’s approach to financial crime accountability in the digital age. The ED’s investigation is not merely about rogue betting apps—it’s about how tech giants govern their platforms, especially when those platforms intersect with sectors known for illicit financial flows.
As India intensifies its crackdown on money laundering and digital fraud, the message is clear: No platform is above the law. The outcome of this case could usher in new advertising norms, compel companies to rethink their vetting systems, and force the industry to acknowledge its role in safeguarding financial integrity.
