ED Freezes Rs. 30 Lakh & Seizes Evidence in Crackdown on “Magic win” Illegal Betting Operation
(Judicial Quest News Network)
The Enforcement Directorate (ED), Ahmedabad Zonal Office, conducted extensive search operations on December 10 and 12, 2024, under the Prevention of Money Laundering Act (PMLA), 2002, targeting 21 locations across Delhi, Mumbai, and Pune. The operations were part of an ongoing investigation into the illegal activities of the “Magicwin” online betting platform, which was involved in unauthorized broadcasting of Cricket Men’s T20 World Cup matches and various other betting operations.
During the searches, the ED froze approximately Rs. 30 lakhs in bank funds and seized numerous incriminating documents and digital devices. The probe was initiated based on an FIR filed by the Cyber Crime Police in Ahmedabad against Magic win and its associates.
The ED’s investigation has revealed that Magic win is a fraudulent betting website masquerading as a gaming platform, owned by Pakistani nationals. While the website’s operations are largely managed by Indian nationals based in Dubai, it also broadcasts betting games that are originally played in countries like the Philippines, where betting activities are legal. These games are re-broadcast on Magic win by duplicating the APIs of the original games.
The investigation further uncovered a sophisticated network for handling financial transactions. Deposits made by players are funnelled through a series of shell and mule accounts. The profits generated by the website’s owners are either invested in cryptocurrencies, withdrawn as cash, or funnelled to Dubai via hawala channels. Players’ winnings are transferred to their accounts through a network of merchant accounts held by shell companies in collaboration with payment gateways and aggregators. Additionally, winning amounts are also routed through Domestic Money Transfers (DMT).
A key revelation from the investigation is the involvement of Bollywood celebrities in promoting the Magicwin platform. The company hosted a launch event in India, attended by several high-profile stars, who participated in photo and video shoots to endorse the platform and promoted it through their social media channels. The website also used out-of-home (OOH) advertising, including hoardings in Gujarat and Maharashtra, to boost its reach.
The investigation has shown that Magicwin generated profits exceeding 50% of the total deposits made by its players. As of now, the ED has conducted 68 searches in the case, seizing a total of Rs. 3.55 crore (approx.) in assets.
The investigation is ongoing, with further developments expected in the coming weeks as the ED continues to dismantle this illegal betting operation.
