Key Moments:
- The Enforcement Directorate seized 40kg of 24-carat gold valued at ₹50.33 crore (US$5.6m) in connection with an illegal betting probe involving KC Veerendra.
- Total confiscated assets in the case now surpass ₹150 crore (US$16.9m), including gold, cash, vehicles, and bank accounts.
- The Supreme Court of India is scheduled to review challenges to the national gaming ban on 4 November 2025.
Major Asset Seizure Amid Betting Network Investigation
The Enforcement Directorate (ED) in India has stepped up its investigation into an unauthorized online betting operation linked to Karnataka assembly member KC Veerendra. In recent raids under the Prevention of Money Laundering Act (PMLA), 2002, the ED’s Bengaluru Zonal Office found 40 kg of 24-carat gold worth ₹50.33 crore (US$5.6 m) in two Challakere lockers.
ED, Bengaluru has carried out search operations on 09.10.2025 under the provisions of PMLA, 2002 in the case of K C Veerendra and others related to cheating public in illegal online betting case. During the search, 24 carat gold bullion weighing 40 kgs (approx.) worth Rs. 50.33… pic.twitter.com/CbwUnkpYw9
— ED (@dir_ed) October 9, 2025
Total Confiscations Surpass ₹150 Crore
The latest recovery pushed the total value of seized assets to more than ₹150 crore (US$16.9 m). Earlier raids had already uncovered 21 kg of gold bars and large amounts of cash. They also found silver jewelry, vehicles, and frozen bank accounts linked to Veerendra’s network.
| Item | Quantity | Value |
|---|---|---|
| 24-carat Gold Bullion (latest seizure) | 40kg | ₹50.33 crore (US$5.6m) |
| Previously Seized Gold | 21kg | Not specified |
| Total Assets Seized | — | ₹150 crore+ (US$16.9m+) |
Operational Tactics and Money Laundering
Investigators claim that Veerendra and his associates operated several illegal betting sites, including King567 and Raja567. These platforms reportedly attracted users from across India. The ED said that the operators funneled funds through various fintech gateways and mule accounts. Consequently, this obscured the financial trail and made the investigation more complex.
“The probe revealed Veerendra in association with other friends and family members is involved in operations of many illegal online betting websites – King567, Raja567, etc. and cheating innocent players through the same. The funds collection from players has been routed using several gateways like FonePaisa etc. The money so collected is routed through several mule accounts which are sourced by these betting operators from intermediaries from all across India.”
Moreover, the agency warned that this scheme mixed illegal gaming proceeds with legitimate transactions. As a result, it posed serious risks to the stability of India’s financial system.
Regulatory Landscape and Supreme Court Review
The timing of these enforcement actions coincides with India’s Supreme Court preparing to address legal challenges to the recently enacted Promotion and Regulation of Online Gaming Act, 2025. The law banned real-money online gaming earlier in the year, leading to industry layoffs and platform shutdowns. C.A. Sundaram, representing Head Digital Works (A23), informed the court: “Our business is completely closed, employees have been laid off, and the issue has national ramifications.”
The Supreme Court postponed further proceedings until after the Diwali recess, scheduling the case for a 4 November 2025 hearing. The legal outcome could set pivotal guidelines separating sanctioned platforms from illegal gaming networks.
Outlook for India’s Gaming Sector
This ongoing probe highlights an intensified push by Indian regulators and enforcement agencies to crack down on unauthorized gambling platforms and intermediaries. As authorities tighten oversight and legal proceedings continue, the industry faces a period of significant transition, with the Supreme Court poised to influence the direction of regulated and unregulated gaming in India.
- Author
Daniel Williams
