India’s Dafabet Probe Exposes Hidden Machinery of Illegal Gambling

• India’s betting probe uncovered 46 mule accounts across eight layers
• Illegal gambling networks rely on shell firms and payment intermediaries
• Dafabet case highlights hidden infrastructure behind Asian betting markets

The arrest of 11 individuals in India allegedly linked to a network promoting the Dafabet online gambling platform has shed light on how offshore betting operators and their local support networks function across Asia’s black-market gambling ecosystem.

The investigation, conducted by the Criminal Investigation Department (CID) in the southern state of Telangana, uncovered an intricate web of 46 mule bank accounts operating across eight layers of transactions that allegedly moved player funds through multiple Indian states, according to a report by Indian public broadcaster NDTV.

Authorities also uncovered shell companies, technical support infrastructure and a network of account providers spread across the country.

Mule Accounts

Rather than relying on conventional payment processors, illegal betting operators increasingly depend on thousands of “mule” accounts — bank accounts rented, purchased or controlled through intermediaries — to move money while avoiding detection.

The accounts are often sourced from economically vulnerable individuals in rural communities who are paid to hand over control of their banking facilities. That’s why in some sections of the offshore gambling industry they are known as “farmers’ accounts.”

Those arrested by Telangana CID allegedly included individuals responsible for collecting funds, sourcing mule accounts, operating shell companies and providing technical support.

Investigators said customers were recruited through aggressive marketing campaigns promoting cricket betting, casino games and the popular Aviator game, often with promises of easy profits and high returns. Initial payouts were reportedly used to build trust before users were encouraged to increase their wagers.

“Illegal online betting platforms are not harmless gaming avenues; they are organized criminal enterprises that exploit vulnerable citizens, siphon money through layered financial networks and fuel cyber-enabled crime,” Telangana CID Director General Charu Sinha said.

Offshore Structure

Dafabet was founded in the Philippines in 2004 and was licensed through the Cagayan Economic Zone Authority (CEZA), one of the first jurisdictions in Asia to license online gambling businesses serving customers outside the Philippines, including in countries where online betting remained legally restricted.

The brand also maintains a regulated presence in the UK and Malta through the white-label provider SCGO, formerly Vivaro.

Under the white-label model, gambling brands can market themselves under their own identity while relying on a separately licensed operator to provide the regulatory framework, platform infrastructure and certain operational services.

These have significantly increased the brand’s visibility across Asian markets, including jurisdictions where online gambling and gambling advertising face varying degrees of legal restriction.