Probo Under Investigation by ED for Alleged Gambling Violations

Probo is currently in the spotlight as the Enforcement Directorate (ED) has executed searches at its offices located in Gurugram and Jind, leading to the seizure of assets valued at Rs 284.5 crore. The investigation is being carried out under the Prevention of Money Laundering Act (PMLA), with allegations indicating that Probo’s operations have breached public gambling laws.

Details of the Investigation

This action follows increased scrutiny of Probo’s activities, which are now being examined by various investigative and judicial authorities. According to the ED, Probo has been facilitating users to place bets on events with binary outcomes, masking this as “opinion trading,” which resembles online gambling.

The ED also reported that multiple incriminating documents and digital data were collected during the raids. These searches were initiated based on FIRs filed in Gurugram, Palwal, and Agra, in accordance with the Public Gambling Act and relevant clauses of the Bharatiya Nyaya Sanhita.

Legal Challenges and Public Interest Litigation

As the financial investigation proceeds, Probo is concurrently engaged in a legal battle at the Haryana High Court. A Public Interest Litigation (PIL) has been submitted, asking for a prohibition on applications like Probo, which are accused of operating as betting platforms while claiming to be technology startups. In reaction to these concerns, the Haryana government has enacted a new statute, the Prevention of Gambling Act, 2025, aimed at regulating such platforms. Nonetheless, this new law has stirred up debates within the gaming industry, with numerous stakeholders questioning its broad applicability and constitutional validity.

Financial Performance of Probo

Despite these legal and investigatory challenges, Probo has successfully secured approximately $28 million over several funding rounds. As per insights from a startup data intelligence platform, Peak XV holds the largest share at 21.72%, with Elevation Capital and The Fundamentum Partnership being notable investors.

In the fiscal year ending March 2024, Probo reported remarkable growth, achieving a 5.4X increase in revenue from Rs 86 crore in FY23 to Rs 459 crore in FY24. Concurrently, the company’s profits surged to Rs 92 crore for FY24, while it has yet to disclose its figures for FY25.