High-Profile Probe: ED Investigates Vijay Deverakonda, Rana Daggubati, Prakash Raj and Others in Illegal Betting App Promotion Case!!

In a major development that has sent ripples across the Indian entertainment industry, the Enforcement Directorate (ED) has launched a wide-ranging investigation against 29 celebrities and influencers, including prominent South Indian actors Vijay Deverakonda, Rana Daggubati, and Prakash Raj, for their alleged role in endorsing and promoting illegal betting platforms disguised as online gaming apps.

The probe is being conducted under the provisions of the Prevention of Money Laundering Act (PMLA), based on several First Information Reports (FIRs) filed by the Cyberabad Police in Telangana. The central concern is that these celebrities may have received substantial financial compensation to promote apps that engaged in or facilitated unlawful gambling and betting activities, contrary to Indian law.

The Origin of the Case

The case emerged after a series of FIRs were registered in early 2025 against various betting platforms operating in the guise of online skill-based games. While Indian courts have generally upheld the legality of games of skill like rummy and fantasy sports, many of these platforms allegedly offered games of chance or real-money wagering without necessary regulatory approvals.

Following the FIRs, the ED registered an Enforcement Case Information Report (ECIR) and began tracing financial flows between these platforms and public figures who had endorsed them. Initial findings suggested that the platforms may have laundered money through celebrity endorsements and digital advertising campaigns.

Celebrities Under the Scanner

Vijay Deverakonda

A well-known Telugu film star and youth icon, Vijay Deverakonda, reportedly endorsed the app A23, a platform that presents itself as a legal skill-based rummy game. His management has stated that the endorsement agreement concluded in 2023 and was fully compliant with legal norms at the time. However, the ED is now scrutinizing whether payments received by Deverakonda could be traced to illegal proceeds from gambling activity on the app.

Rana Daggubati

Rana Daggubati, widely recognized for his role in the Baahubali franchise, is said to have entered into a promotional contract with another gaming platform in 2016–2017. He has publicly maintained that the platform he endorsed operated legally and that his involvement ended several years ago. However, the ED is investigating whether any part of the compensation received by him was sourced through money laundering practices.

Prakash Raj

Veteran actor and social activist Prakash Raj is also named in the ECIR for having promoted the platform Junglee Rummy in 2016. According to Raj, the endorsement was discontinued after a year, and he had issued legal notices when his image was reused in advertisements in 2021 without authorization. He has emphasized that he has consistently advised people, especially youth, to stay away from gambling.

Other Notable Figures

The investigation also involves a number of other prominent names in the Telugu entertainment industry, including actresses Nidhhi Agerwal and Manchu Lakshmi, television presenter Sreemukhi, YouTuber Harsha Sai, and influencer Varshini Sounderajan. These individuals allegedly promoted various betting and gaming platforms through their social media channels and online content.

Legal Dimensions of the Case

The central legal debate in this investigation revolves around the distinction between games of skill and games of chance, which has been a contentious issue in Indian gaming law. The Supreme Court of India has ruled in multiple cases that games like rummy and fantasy sports, which require a significant element of skill, are not classified as gambling and are therefore legal in many states.

However, the ED and police authorities argue that some platforms misused this legal grey area to offer betting services that resembled gambling more than skill-based gaming. These apps are accused of conducting financial transactions that were neither transparent nor in line with the regulatory framework, thereby falling under the ambit of money laundering and public gambling laws.

The promotional activities by celebrities are being scrutinized to determine whether they knowingly endorsed illegal betting platforms or negligently failed to verify the legitimacy of the brands they represented. The ED may also probe whether these individuals received payment through illicit channels, including hawala transactions or cryptocurrency.

Financial and Ethical Implications

From a financial standpoint, the ED is investigating whether these endorsements were part of a larger money laundering scheme, with promotional payments being used to convert black money into legitimate income. Bank transactions, income declarations, promotional contracts, and digital payment records are all under review.

From an ethical perspective, the case raises serious concerns about celebrity accountability and the influence of public figures on consumer behavior. Many of these apps target younger audiences and lower-income users, making them particularly vulnerable to the harms of gambling addiction and financial loss.

The Advertising Standards Council of India (ASCI) has previously issued advisories urging celebrities and influencers to conduct due diligence before endorsing real-money gaming platforms. The current probe may prompt the government to tighten existing advertising regulations and possibly require mandatory disclaimers or restrictions on such endorsements.

Industry and Public Reaction

The Indian film and digital media industries have been cautious in their reactions. While no production houses have issued public statements, insiders suggest that some projects involving the named celebrities may face delays or reconsideration due to reputational concerns.

Public sentiment has been mixed. While some argue that celebrities should not be held liable for promoting apps that were legal at the time, others believe public figures have a moral responsibility to evaluate the ethical implications of their endorsements. On social media platforms like X (formerly Twitter) and Reddit, debates continue to swirl over whether these promotions were done in good faith or were purely profit-driven.

What’s Next in the Investigation?

The ED is expected to summon many of the named celebrities for questioning over the coming weeks. The investigation will also likely involve:

• Examination of financial and contractual records

• Forensic audits of payments received

• Tracking of cryptocurrency transactions and offshore accounts (if any)

• Legal assessment of the nature of the games promoted

If sufficient evidence is found, the ED may file charges under the PMLA, Public Gambling Act, Indian Penal Code, and relevant sections of the Information Technology Act, including Section 66(D), which pertains to cheating by impersonation through computer resources.

Convictions under these laws can carry significant penalties, including fines, confiscation of assets, and imprisonment.

Conclusion

The ED’s ongoing investigation marks a turning point in the regulation of India’s fast-growing online gaming and betting sector. It serves as a cautionary tale for celebrities and influencers who often associate with brands for monetary gain, without thoroughly vetting their legality or societal impact.

As the investigation unfolds, it is likely to reshape the endorsement landscape, encouraging stricter compliance, greater transparency, and a renewed focus on ethical responsibility among public figures. It also emphasizes the need for stronger regulatory frameworks to govern digital platforms, safeguard consumers, and prevent the misuse of technology for unlawful enrichment.