ED seizes 40kg gold in India illegal online betting case
India has intensified its crackdown on illegal online gambling, uncovering a massive gold haul and exposing a sophisticated betting and money-laundering network.
Enforcement Directorate seizes 40kg of gold
Enforcement Directorate (ED) seized 40kg of 24-carat gold bullion worth ₹50.33 crore (US$5.6m) during raids linked to Karnataka politician K. C. Veerendra. The operation was conducted under the Prevention of Money Laundering Act (PMLA), 2002.
The search took place in Challakere, where the gold was stored in two lockers, marking a major development in the case.
Total assets seized surpass ₹150 crore
The total assets seized in this investigation now exceed ₹150 crore (US$16.9m). Earlier raids uncovered 21kg of gold bars, luxury cars, silver jewellery, large cash reserves and frozen accounts tied to Veerendra’s alleged betting network.
Investigators say the group ran illegal betting platforms including King567 and Raja567, attracting players nationwide and routing their funds through layered financial channels to evade detection.
Sophisticated laundering through fintech and mule accounts
According to the ED, the network used fintech gateways like FonePaisa and hundreds of mule accounts to conceal betting proceeds.
“Veerendra and his associates operated multiple illegal betting sites and laundered funds through a web of mule accounts sourced nationwide,” the ED said.
This structure allowed illegal funds to blend with legitimate transactions, creating major regulatory and financial risks.
Legal battle looms in Supreme Court
The enforcement action comes just weeks before the Supreme Court of India reviews the Promotion and Regulation of Online Gaming Act, 2025.
The Court is set to hear arguments on 4 November 2025, a case that could reshape India’s online gaming laws. The gaming ban has already forced major platforms like A23 to shut down operations and lay off staff.
Industry impact and regulatory turning point
This case highlights India’s aggressive push to dismantle unlicensed betting networks and strengthen financial oversight. At the same time, legal operators are pressing for regulatory clarity to distinguish between illegal gambling and legitimate skill gaming.
The Supreme Court’s decision could decide whether India builds a regulated market or continues down a path of blanket bans and enforcement crackdowns.
