The Directorate of Enforcement (ED) in India has widened its crackdown on Cyprus-based illegal online betting platform Parimatch, placing advertising and media agencies under the scanner for allegedly aiding the company’s surrogate promotions in India.

In extensive search operations on August 12 across Mumbai, Delhi, Noida, Jaipur, Surat, Madurai, Kanpur and Hyderabad, the ED froze funds worth nearly ₹110 crore parked in mule bank accounts suspected of being used for money laundering and layering transactions. Officials also seized digital devices, documents, and more than 1200 credit cards used in the racket.

The investigation revealed that Parimatch routed user funds through a complex network of mule accounts, hawala channels and crypto wallets. In some cases, funds were withdrawn in cash in Tamil Nadu and converted into USDT cryptocurrency through UK-based wallets controlled by Parimatch agents. Other methods involved the use of domestic money transfer agents and rejected payment aggregators who provided backdoor API access for fund collections disguised as e-commerce payments and refunds.

However, investigators said the platform’s aggressive rise in India was fueled not just by these financial networks but also by heavy marketing and surrogate advertising. Despite being an illegal offshore betting operator, Parimatch gained visibility through sponsorship of sports tournaments, celebrity endorsements and brand extensions under “Parimatch Sports” and “Parimatch News.”

Payments to Indian advertising and media agencies handling these promotional activities were allegedly routed via foreign inward remittances, raising questions about the role of advertising companies in enabling the brand’s presence in the country. Officials hinted that several agencies may now face questioning over their involvement in running surrogate ads designed to bypass gambling restrictions.

Roland Landers, CEO of All India Gaming Federation, said: “ED’s action to freeze funds linked to surrogate offshore gambling entities such as Parimatch Sports and Parimatch News is a much-needed step to curb the growing menace of illegal offshore gambling operations that continue to exploit India’s growing gaming user base. Curbing the financial networks of such offshore is very important. We are hopeful that the persistent threat of surrogate advertising of such platforms, often disguised as sports or news content that misleads Indian gamers and normalises illegal gambling will also be stopped by media platforms.”

Landers said: “There is now an urgent need for a central regulatory framework that will bring in uniformity across states, ensure clarity, stability, and a level playing field for compliant indian skill-based operators who adhere to laws and contribute meaningfully to the economy. This will not only help in effectively curbing illegal offshore gambling but also unlock the true growth potential of India’s legitimate, skill-based online gaming industry.”

A research by Skill Online Games Institute states that almost 83% on the spends of the 500 million strong Indian gaming players community is going to offshore gaming platforms. Today only USD 3.2 billion (17%) is coming to Indian gaming platforms.

Amrit Kiran Singh, the founder president of Skill Online Games Institute, said: “We have raised the issue with PMO, MHA FIU besides MIB & MEITY. The government has been discussing this with us but more concrete action needs to be taken to really address this significant issue. While investigations on celebrities and advertising agencies who help promote the illegal platforms will help slow down the promotion of these platforms, the size of the business should indicate that the horse has, already bolted -that this illegal business is already well established and thriving.”