ED conducts raids across Mumbai, Pune, and Delhi in connection with the Magicwin betting scandal, uncovering illegal operations | Representational Image
Mumbai: The Enforcement Directorate (ED) conducted searches at 21 locations across Mumbai, Pune, and Delhi on December 10 and 12 as part of its ongoing investigation into the “Magicwin” alleged betting scandal. The raids were carried out under the Prevention of Money Laundering Act (PMLA), 2002. As a result, ED officials froze approximately Rs 30 lakh in bank funds and seized several incriminating documents and digital devices, the agency stated on Thursday.
The investigation stems from an FIR filed by the Cyber Crime Police, Ahmedabad, against Magicwin and its associates. The online platform, disguised as a gaming website, is allegedly involved in illegal cricket betting activities related to the Men’s T20 World Cup and other sporting events.
The Financial Probe Agency stated that during the investigation it revealed that Magicwin, a betting website guised as a gaming platform, is actually owned by Pakistani nationals. The operations of this website are primarily managed by Indian nationals working or settled in Dubai. It has also been discovered that the betting games displayed on the website are originally played in the Philippines and other countries where such activities are permitted. However, Magicwin illegally re-broadcasts these games by copying the original APIs, allowing users to place bets on the platform. The betting activities, including deposits, placing bets, and withdrawals, are controlled by the owners of Magicwin only.
The ED investigation has gathered that the money deposited by players on the Magicwin website was routed through several layers of shell and mule bank accounts. The profit portion of the owners has been either invested in crypto assets, withdrawn in cash, or transferred to Dubai through hawala channels. Furthermore, the winning amounts of players and betters are transferred to their bank accounts via merchant accounts of various shell companies maintained with payment gateways and aggregators, or through Domestic Money Transfer (DMT)
It has also been revealed during the investigation that Magicwin had hosted a launch party in India, where several Bollywood celebrities attended and endorsed the platform. These celebrities also participated in photoshoots and video advertisements for Magicwin, which were shared on their social media accounts to promote the platform. Additionally, advertisements were displayed on hoardings across various parts of India, including Maharashtra and Gujarat. Investigations have shown that profits generated by the betting website account for more than 50% of the total deposits made by players.
As of now, ED Ahmedabad has conducted a total of 68 searches in connection with this case and has seized incriminating documents and digital devices. The total seizure/freezing in this case stands at approximately Rs 3.55 Crore.
