The Enforcement Directorate (ED) has widened its investigation into the alleged promotion of illegal betting apps, with Telugu actor Lakshmi Manchu appearing before the agency for questioning on August 13, 2025. This follows the earlier questioning of actors Vijay Deverakonda and Rana Daggubati in connection with the same case.

The ED's probe stems from a First Information Report (FIR) filed in March 2024 by a Hyderabad-based businessman, PM Phanindra Sarma, who alleged that several Tollywood actors, television personalities, and social media influencers were endorsing online betting apps, leading to financial losses for users and violating the Public Gambling Act of 1867. The agency has filed an Enforcement Case Information Report (ECIR) against 29 individuals, including actors, influencers, and YouTubers. Notices have been sent to 36 film personalities so far.

The ED is investigating whether these celebrities received payments through illicit channels for promoting these apps. The agency is also recording statements from the actors under the Prevention of Money Laundering Act (PMLA) to determine the extent of their involvement.

Vijay Deverakonda appeared before the ED on August 6, 2025, and clarified that he had endorsed a gaming app called A23, which he claimed was a legal entity and distinct from betting apps. He stated that gaming apps are recognized by the government, licensed as a business, and subject to GST and TDS. Deverakonda also provided the ED with details of his account, company, and financial transactions. He emphasized that these gaming apps sponsor various Indian sports teams and events, implying their legitimacy.

Rana Daggubati was questioned by the ED for nearly five hours on August 11, 2025. He submitted bank statements to support his claim that he did not receive any financial benefits from promoting the apps. Sources indicated that Daggubati's legal team had vetted the endorsement contract before he signed it, and he had only promoted skill-based games that the Supreme Court has deemed legal.

Prakash Raj also appeared before the ED and stated that he did not take any payment for the advertisement he had done for a gaming app in 2016, as his conscience did not allow him to. He reiterated that he only did one advertisement for a gaming app, but later realized that he should not have done it.

The ED's investigation is based on multiple FIRs filed across Telangana and Andhra Pradesh. The agency believes that celebrities and influencers were roped in for paid campaigns that indirectly endorsed betting operations, bypassing regulatory norms. The probe aims to determine if the celebrities received payments through hawala channels or other illegal means.

The case has brought to light the potential for financial harm caused by these apps, particularly among lower and middle-class families. Some individuals have reportedly incurred significant financial losses and, in tragic cases, ended their lives after being lured by the promise of easy money.