December 17, 2024: The Enforcement Directorate (ED) has conducted extensive raids at 21 locations in connection with an ongoing investigation into a betting app allegedly operated by Pakistani nationals. The app, "Magicwin," is at the center of an investigation involving illegal activities, including the unauthorized broadcast of Men's T20 Cricket World Cup matches.

The ED's action, which took place between December 10 and 12, was carried out under the provisions of the Prevention of Money Laundering Act (PMLA), 2002. The agency's operations were aimed at dismantling the illicit financial network tied to the Magicwin platform, which, according to the ED, masquerades as a gaming website while facilitating illegal betting activities.

During the raids, the ED froze bank funds amounting to approximately Rs 30 lakh and seized a range of incriminating documents and digital devices. The investigation began after a case was registered by Cyber Crime Police, Ahmedabad, against the Magicwin website.

Further probing revealed that the platform is primarily managed by Indian nationals based in Dubai, with the actual ownership linked to Pakistani individuals. The betting games featured on Magicwin are allegedly sourced from countries like the Philippines, where such activities are permitted. However, these games are re-broadcast on the Magicwin site using copied APIs. The betting operations, including deposits, betting placements, and withdrawals, are controlled by the Pakistani owners.

The investigation uncovered a complex network through which the money deposited by players was funneled via multiple shell or mule bank accounts. The profits generated were then either invested in cryptocurrency, withdrawn in cash, or funneled to Dubai through hawala channels. In addition, winning amounts were transferred to users via merchant accounts tied to shell companies and domestic money transfer systems.

ED officials also revealed that Magicwin held a launch party in India, attended by several Bollywood celebrities, who promoted the platform through photo and video shoots on their social media accounts. Advertising for the website was further extended through hoardings across Gujarat and Maharashtra. Investigations showed that more than 50% of the total deposits made by users were retained as profits by the platform.

To date, the ED has carried out 68 searches in relation to the case, with total seizures and freezes amounting to approximately Rs 3.55 crore. The investigation is ongoing, and further action is expected as the ED continues to trace the illicit financial flows and uncover the full extent of the operation.