NATIONAL: Vijay Deverakonda Clears Air on ED Betting App Probe
ED Summons Tollywood Star
Telugu actor Vijay Deverakonda appeared before the Enforcement Directorate (ED) in Hyderabad for a four-and-a-half-hour questioning session regarding allegations of promoting illegal betting apps.
The investigation stems from a broader probe into 29 celebrities, including actors and influencers, accused of endorsing unlawful online betting platforms under the Prevention of Money Laundering Act.
Deverakonda’s appearance followed an Enforcement Case Information Report (ECIR) triggered by five FIRs filed in Telangana and Andhra Pradesh.
Clarification on A23 Endorsement
Deverakonda addressed the media post-investigation, emphasizing that he solely promoted A23, a skill-based gaming app legally recognized in multiple Indian states.
He distinguished between betting and gaming apps, noting that A23 operates with GST compliance, tax obligations, and necessary permits and is inaccessible in Telangana due to geolocation restrictions.
The actor’s contract with A23, which ended in 2023, was strictly for promoting skill-based games like rummy, deemed legal by the Supreme Court.
Transparency with Authorities
During the ED session, Deverakonda submitted comprehensive documentation, including bank transaction records and the agreement with A23’s parent company, to substantiate the legality of his endorsement.
He asserted that the ED officials were satisfied with his explanations, highlighting that A23 operates only in regions where skill-based gaming is permitted.
The actor stressed that his promotional activities adhered to legal standards, with no ties to betting platforms.
Legal Context of Gaming in India
In India, skill-based gaming apps like A23 are distinguished from betting apps, which are prohibited under the Public Gambling Act, 1867, and state-specific laws like the Telangana State Gaming Act.
The Supreme Court has repeatedly classified games like rummy as skill-based, thus permissible in states with appropriate regulations.
Deverakonda underscored that A23’s operations, including sponsorships for sports like IPL and kabaddi, align with these legal frameworks.
Broader Investigation and Industry Impact
The ED’s probe targets a wider group of celebrities, including Rana Daggubati, Prakash Raj, and Manchu Lakshmi, for allegedly promoting apps like Junglee Rummy and Yolo247.
The investigation, backed by charges under the Bharatiya Nyaya Sanhita and IT Act, examines financial trails and digital advertisements.
The outcome could reshape regulations around celebrity endorsements and the online gaming industry in India.
Deverakonda’s Stance and Future Outlook
Deverakonda maintained that the distinction between gaming and betting is clear, leaving it to courts and governments to define legal boundaries.
His team has reiterated that all endorsements underwent rigorous legal vetting, and he has remained unassociated with A23 since 2023.
The ongoing probe may prompt the Telugu film industry to reassess ethical advertising practices, with the Movie Artistes Association considering guidelines to educate members.