Online Betting

07 Nov Online Betting

This article covers “Daily Current Affairs” and the topic details “ Online Betting”. This topic has relevance in the Governance section of the UPSC CSE exam.

For Prelims:

About Online Betting?

About the Enforcement Directorate?

For Mains:

GS 2: Governance

Potential Aspects?

Risks Associated?

Why in the news?

The IT ministry has issued a blocking order targeting 22 betting applications, which includes Mahadev Book Online and Reddyannaprestopro. This action aligns with the ongoing investigation by the Enforcement Directorate (ED) into the Mahadev betting app case.

Background:

• The Enforcement Directorate (ED) conducted raids on Mahadev Book in Chhattisgarh under the Prevention of Money Laundering Act (PMLA).
• Illegal Betting Websites Ban: Sites like Mahadev Book Online and Reddyannaprestopro were banned by the ED due to illegal betting app syndicates.

Online Betting Apps:

• Potential Aspects:

• • Convenience and Accessibility: Online betting apps provide easy access to betting from any location using internet-connected devices.
  • Entertainment Value: Users find these apps entertaining for sports betting and gambling.
  • Economic Opportunities: Some view online betting as a potential income source.
  • Technological Advancements: These platforms leverage technology for an engaging user experience.

• Risks Associated:

• • Addictive Nature: Convenience may lead to addictive behavior and associated problems.
  • Illegal Activities: Unregulated betting apps can be linked to money laundering and illicit activities.
  • Financial Risks: Users face potential financial losses due to the high-risk nature of gambling.
  • Regulatory Concerns: Varied regulatory frameworks lead to concerns about uniform standards and consumer protection.

Enforcement Directorate Overview:

• Origin: Established as the ‘Enforcement Unit’ in 1956 under the Department of Economic Affairs.
• Responsibilities: Mandated to enforce special fiscal laws like the Foreign Exchange Management Act (FEMA) and the Prevention of Money Laundering Act (PMLA).
• Intervention Criteria: Steps in when a crime generates proceeds exceeding 1 crore rupees.
• Powers: Authorized to conduct searches and seizures if money laundering is suspected.

Note:

• Ill-gotten property acquired before 2005 falls outside the PMLA’s scope, enacted in 2005.

Source: Centre orders blocking Mahadev Book Online amid ED probe on betting app (msn.com)

Q.1 Consider the following statements regarding the Enforcement Directorate (ED):

1. The Enforcement Directorate was founded as the ‘Enforcement Unit’ in 1956 under the Department of Economic Affairs.
2. The Enforcement Directorate intervenes in cases where the crime generates proceeds exceeding 1 crore rupees.

Which of the statements given above is/are correct? 

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

ANSWER: C

Q.2 Online betting has become a prominent phenomenon in the digital age, providing both convenience and entertainment to users. However, it also raises various socio-economic and regulatory concerns. In the context of online betting, discuss the impact on society, the economy, and the challenges of regulating this industry.

rishabh