The Enforcement Directorate (ED) has turned up the heat on Tollywood, as stars like Prakash Raj, Vijay Deverakonda, Rana Daggubati find themselves under the scanner in connection with a growing betting app scam. The probe, which now includes 29 celebrities across South India, alleges violations of the Public Gambling Act, 1867. The case highlights a dark nexus between online gaming platforms and celebrity endorsements that could mislead millions of Indians, especially vulnerable youth. It also comes amidst nationwide concerns over betting-related suicides, putting a spotlight on legal and ethical accountability.
Celebrities Under Scrutiny: What Is the ED Case All About?
The ED has filed a case under the Prevention of Money Laundering Act (PMLA) against 29 personalities, including popular Telugu film actors, social media influencers, and YouTubers, for promoting and endorsing betting apps. The central financial crime agency acted based on five FIRs filed in Andhra Pradesh and Telangana, invoking sections from the Bharatiya Nyay Sanhita (BNS), Telangana Gaming Act, and the IT Act.
Those named include Vijay Deverakonda, Rana Daggubati, Prakash Raj, Manchu Lakshmi, Nidhi Agarwal, Pranitha Subhash, Ananya Nagella, and well-known influencers like Sreemukhi, Shyamala, Varshini Sounderajan, Harsha Sai, and Bayya Sunny Yadav. Many of them are alleged to have directly promoted online gaming platforms that are now accused of facilitating financial fraud and laundering money through in-app purchases, wallets, and crypto transactions.
A complaint by businessman Phanindra Sarma triggered the investigation, accusing celebrities of endorsing apps that misled users and caused significant financial harm.
Celebrity Clarifications: Denials and Legal Statements
As media reports ignited controversy, many of the accused stars issued clarifications. Vijay Deverakonda maintained that his contract strictly involved promoting “skill-based” games. He emphasized that the games in question had received recognition by the Supreme Court as legal and were not to be confused with gambling.
Rana Daggubati also distanced himself from the case, stating that his involvement with the app concluded in 2017. His legal team added that any promotion was carried out only in jurisdictions where it was legally permitted.
Veteran actor Prakash Raj explained that his 2016 contract with the gaming app was not renewed after 2017. He said that when a new company used his old promotional video in 2021 without permission, he objected and the video was withdrawn. “I urge the youth to stay away from gambling. It ruins lives,” Raj added in a public statement.
Why This Matters: Suicides, Addictions, and Public Backlash
The controversy surrounding betting apps isn’t just about financial impropriety or celebrity ethics—it’s about real lives lost. In recent years, numerous reports have surfaced of people taking their lives after losing money on betting apps. States like Tamil Nadu, Maharashtra, Telangana, and Kerala have seen multiple cases of young people dying by suicide due to online gambling debts.
Critics argue that celebrities have a moral obligation to assess what they endorse, especially when their fan base includes minors and economically vulnerable groups. The endorsement of betting platforms by influential figures adds a layer of legitimacy to inherently risky ventures, often blurring the line between skill and deception.
Is It Skill or Luck? What the Courts Say
One of the central arguments made by celebrities in their defense is the legal distinction between games of skill and games of chance. The Supreme Court of India has on several occasions clarified that games requiring substantial skill like rummy, poker (in certain contexts), and fantasy sports can be categorized as legal.
However, the issue becomes murky when skill-based apps introduce elements of gambling, such as cash winnings, randomized outcomes, or high-stake betting. Courts have acknowledged that even skill-based games can morph into gambling platforms depending on how they are designed and marketed. The Telangana High Court has upheld bans on certain apps when public harm was evident, despite their so-called skill-based nature.
A Wake-Up Call for Influencers and Lawmakers
This latest ED probe isn’t just another celebrity scandal it’s a call for introspection within the entertainment and influencer industries. With betting-related suicides rising and legal loopholes being exploited, there is a dire need for tighter regulations and ethical boundaries. As the case unfolds, it remains to be seen whether this will lead to actual convictions or merely fizzle out as yet another high-profile controversy. Either way, it has already sent a strong message: celebrity status does not place one above the law, especially when lives and livelihoods are at stake.