The two, arrested from Lanjipalli area in the town, were identified as Sanaju Kumar Mishra (37) and S Ananda Patro (32).
Two mobiles phones and Rs 500 were seized from them during the raid yesterday, police said.
"We suspect involvement of a group in IPL betting in the town. We are searching for other members of the racket," the police said.
"What is more dangerous part of this practice is that the bookies now are not only targeting businessmen but also trying their luck with college students and government employees," the police said.
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