In response to increased scrutiny on the online gambling empire Mahadev in Dubai, illegal betting rings are reportedly shifting operations to Sri Lanka. The move comes as Dubai faces a heightened investigation into online gambling activities, prompting some operators to seek refuge in the more benign and affordable environment of Sri Lanka.
Offshore call centres and offices, integral to the functioning of these illegal betting apps, are being established in Sri Lanka. These facilities are manned by personnel responsible for interacting with agents in India, maintaining servers, reconciling accounts, and managing the betting books.
These operations are often conducted discreetly, with staff members working in villas located in and around Colombo. The availability of such accommodations at a fraction of the cost compared to Dubai, coupled with Sri Lanka’s economic crisis, makes it an attractive destination for these syndicates.
Following recent arrests linked to Mahadev and increased activity by the Dubai CID in handling complex crimes, syndicates operating in the UAE are feeling the pressure. Sri Lanka, at least for the time being, offers a relatively safer haven for their illicit activities.
The growing cooperation between the UAE and India, coupled with improved information sharing, has unsettled illegal betting operators, leading to a shift of operations to Sri Lanka. This migration, observed in similar illegal apps to Mahadev, commenced approximately four to five months ago, with some groups associated with Mahadev operating under different names through white-label arrangements.
Apart from the affordability factor, Sri Lanka’s ambiguous gambling laws and close trade ties with India are seen as advantageous for setting up discreet back offices. The Enforcement Directorate (ED) is actively monitoring these developments to determine whether they signify a complete exodus of unauthorized betting syndicates from the UAE or merely a relocation of certain personnel and operations amidst the ongoing Mahadev probe.
The ED is investigating the presence of Mahadev Online Book app associates in Sri Lanka and assessing whether the country has been targeted for expanding the illegal betting network or if the fugitive promoters intend to relocate their entire operation there. During the probe, the ED uncovered connections between a Pakistani betting outfit, linked to the Indian group, and a prominent sponsorship role in a cricket tournament in Sri Lanka.
According to sources familiar with the investigation, Sri Lanka already serves as a base for illegal betting activities, with a network of panel operators supported by the D-gang, led by Dawood Ibrahim’s younger brother Mustaqueem Ali Kaskar. The gang provides protection and facilitates operations through hawala operators in India, including the operation of call centres.
The ED’s probe into the Mahadev Book uncovered how illegal online betting apps operate through a franchise model, generating ₹450 crore monthly. The investigation revealed that funds from Indian gamblers are routed abroad via hawala channels and used to purchase stable cryptocurrencies.
Following the arrest of a Mahadev promoter in the UAE, Sri Lanka emerged as an alternative base. Some promoters renounced Indian passports for citizenship in Vanuatu. Sri Lanka and Zimbabwe were considered for relocation, but only Sri Lanka appears viable.
Image source: PTI