In a significant crackdown on illegal betting and gambling promotions, the Telangana Police has registered an FIR against 25 celebrities and social media influencers, including prominent film actors Rana Daggubati, Prakash Raj, and Vijay Devarakonda. The celebrities are accused of promoting illegal betting apps in violation of existing gambling laws.
The FIR was filed at the Miyapur Police Station in Hyderabad on March 19, 2025, following a complaint lodged by 32-year-old businessman Phanindra Sarma. The case has sent ripples through the entertainment industry, raising questions about celebrity endorsements and their responsibility toward their audience.
Telangana Police Registers Case Against 25 Celebrities For Illegal Gambling Promotions
The complaint alleges that these celebrities and influencers have been endorsing betting apps through social media, pop-up advertisements, and promotional videos. According to police reports, the case has been registered under multiple sections of the Bharatiya Nyaya Sanhita (BNS), the Telangana Gaming Act, and the Information Technology Act.
Specifically, the charges include violations of sections 318(4) and 112 read with 49 of the BNS, sections 3, 3(A), and 4 of the Telangana Gaming Act, and section 66(D) of the Information Technology Act, which deals with cheating and identity theft.
S M Vijay Kumar, DCP (west), stated that the police are conducting a thorough investigation to identify the organizers behind these betting operations. “Through the promoters, we will come to know about the organizers of the betting rackets. The help of other investigation agencies will be sought for a detailed probe,” he said.
The Telangana police have also issued notices to several YouTube personalities and social media influencers allegedly involved in promoting these platforms, asking them to appear before the investigating officer.
The Complaint And Its Background
Phanindra Sarma, the complainant, claimed he became aware of the issue on March 16, 2025, while interacting with young people in his community. According to his complaint, many individuals had lost substantial amounts of money on betting and gambling apps that were endorsed by popular celebrities.
Sarma mentioned that he had himself considered investing in one such platform but changed his mind after warnings from his family. His petition emphasized that these apps and platforms are causing widespread financial harm, particularly among lower and middle-class families who are lured by the false promise of easy money.
“These platforms are encouraging the public, especially people in dire need of money, to invest their hard-earned and family money into those apps/websites and slowly get addicted to them, leading to total financial collapse,” according to the FIR.
High-Profile Celebrities Named In The FIR
Apart from Rana Daggubati, Prakash Raj, and Vijay Devarakonda, the FIR also names Manchu Lakshmi, Praneetha, Nidhi Agarwal, Ananya Nagella, Siri Hanumanthu, Sreemukhi, and Varshini Sounderajan, among others.
According to the complaint, these celebrities have allegedly accepted large sums of money to promote various betting platforms, which in turn encourage users to gamble their hard-earned money.
Statements From The Accused Celebrities
Following the filing of the FIR, several of the named celebrities have issued statements clarifying their positions:
Prakash Raj’s Response
Prakash Raj posted a video on social media on Thursday, acknowledging that he had done a gaming app advertisement in June 2016 but realized his “mistake” a few months later.
“I couldn’t do anything about it since the contract was for a year, so I let it go. However, when the company wanted to renew the contract, I refused, as my conscience did not accept it,” he said.
The veteran actor further clarified: “This is my response. Yes, I did the ad eight years ago, but since then, I have consciously decided not to promote betting apps. I have not endorsed any online gambling platforms in the past eight to nine years.”
Prakash Raj also advised young people against gambling, warning that it ruins lives. He concluded with an apology: “I hope you will forgive the one mistake I made eight years ago.”
Vijay Devarakonda’s Clarification
Vijay Devarakonda’s public relations team issued an official statement defending the actor’s endorsement decisions:
“Vijay Devarakonda had officially entered into a contract with a company solely for the limited purpose of serving as a brand ambassador for skill-based games. His endorsement was strictly confined to regions and territories where online skill-based games are legally permitted,” the statement read.
They further clarified: “After a thorough legal review, he had agreed to endorse the skill-based gaming platform A23, ensuring that his association aligned with the law standards. However, his endorsement term ended in 2023, and he is no longer associated with the brand.”
Rana Daggubati’s Defense
Rana Daggubati’s team issued a similar statement, clarifying that he had signed a contract as a brand ambassador for a skill-based gaming company, which expired in 2017.
“His endorsement was strictly limited to regions where online skill-based games were legally permitted,” the statement read. It also emphasized that Rana’s legal team carefully reviews all partnerships before entering into agreements.
The statement added: “It is important to note that these online games have been recognized by the Supreme Court as distinct from gambling. The Court has ruled that such games are based on skill rather than chance and is, therefore, legally permissible.”
Legal Distinction Between Skill-Based Games And Gambling
A key point in the defense of these celebrities is the distinction between skill-based games and gambling. The celebrities’ statements refer to Supreme Court rulings that have differentiated between games of skill and games of chance.
However, the Telangana Gaming Act of 2017 prohibits all forms of online betting in the state, regardless of whether they are classified as skill-based or chance-based. G Vineeth, DCP, Madhapur, clarified this point: “The case is presently under investigation. As per the Telangana Gaming Act 2017, any kind of online betting is prohibited.”
Rising Concerns About Illegal Betting in India
This case highlights the growing concern about illegal betting and gambling platforms in India. A recent report mentioned in the FIR documentation indicates that India has witnessed a significant surge in illegal betting and gambling, with approximately 1.6 billion visits to such platforms recorded in just three months.
The investigation into this case comes at a time when authorities across India are stepping up efforts to combat illegal gambling operations, which are increasingly targeting young adults through sophisticated digital marketing and celebrity endorsements.
Implications For Celebrity Endorsements
The case raises important questions about the responsibility of celebrities in endorsing products and services. The influence they wield over their followers, particularly young and impressionable audiences, puts them in a position of significant responsibility.
K Kranthi Kumar, Inspector of Police at Miyapur Police Station, emphasized this point: “This investigation underscores our commitment to protecting the public from harmful gambling and betting platforms that exploit individuals for financial gain.”
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A Wake-up Call For The Entertainment Industry
As the investigation proceeds, this case serves as a wake-up call for celebrities and influencers to exercise greater caution in choosing the brands and products they endorse. The Telangana police’s action signals that authorities are willing to hold public figures accountable for promoting activities that may harm their followers.
For the entertainment industry, this case might lead to stricter self-regulation and more thorough legal vetting of endorsement deals, especially those related to gaming and betting platforms. It also highlights the need for clearer guidelines on the distinction between skill-based gaming and gambling across different states in India.
As the police expand their investigation to uncover the operators behind these betting networks, the case against these 25 celebrities stands as a reminder of the far-reaching consequences of celebrity endorsements and the fine line between promoting entertainment and encouraging potentially harmful activities.
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