SUMMARY
MIB has directed online ad intermediaries to not target promotional material related to online betting towards Indian audience
MIB reiterates that betting continues to be illegal in many states, warns TV channels and OTT players of penalty
This is the second advisory issued by authorities in close to five months over betting ads visible on private TV channels
Pulling up private broadcasters, OTT players and digital news publishers, the Ministry of Information and Broadcasting (MIB) has issued two separate advisories warning of penalties for airing betting advertisements.
“Such advertisements are not in conformity with various related laws and has strongly advised TV channels as well as digital news publishers from broadcasting such betting platforms or their surrogate news websites…The Ministry has also advised online ad intermediaries to not target such advertisements towards Indian audience,” noted the Ministry.
It is pertinent to note that MIB worked with the Department of Consumer Affairs to issue the two advisories.
The advisory was issued based on the provisions of Cable TV Network Regulation Act 1995, new IT Rules, 2021, prevention of misleading advertisement guidelines and the Consumer Protection Act, 2019.
The order also said that online betting ads were banned in the country, adding flouting such norms would invite penalties.
Citing significant financial and socio-economic risks for the consumers, the Ministry said that multiple online offshore betting platforms were using news websites as a surrogate product to advertise their platforms.
Essentially, it was observed that many online betting platforms were advertising themselves as ‘professional sports blogs’ and ‘sports news websites’ while operating as full-fledged betting platforms.
Authorities also observed that promotional content and advertisements of multiple betting platforms were still visible on certain TV channels and OTT platforms.
“…online offshore betting platforms are now using news websites as a surrogate product to advertise the betting platforms on digital media. In such cases, the Ministry has found that the logos of surrogate news websites bear striking resemblance to betting platforms,” said MIB in a press release.
Prima facie, it also appeared that many betting platforms were also using Google Adsense to target search users. Additionally, many of these were ads clearly seen plastered over news websites in many of these incidents.
Interestingly, in the screenshots attached with advisory, websites of many big news portals were seen reflecting such ads and carrying news related to betting platforms. Developments related to these betting platforms including campaign announcements were reported on many news portals and were purportedly being used to give credence to these betting websites.
The Ministry specifically pointed out betting platforms such as Fairplay, PariMatch, Betway, Wolf 777, and 1xBet for employing direct and surrogate methods to woo users.
This comes close on the heels of another advisory issued by the MIB in June that had warned TV channels from carrying ads related to betting. On the previous occasion as well, the Ministry had termed betting and gambling illegal in many parts of the country and had sought restraint from TV channels.
In A Regulatory Flux
The betting platforms are currently mired in red tape that has created a host of regulatory hurdles for these players. While the government appears to have been overtly cautious with the advisories, it pertinent has a reason not to.
A casein point has been 1xBet which has been banned in many countries including the US, the UK and even Russia. However, the platform continues to freely operate in the country, circumventing the law by leveraging a loophole.
Operating under the brand of a ‘professional sportsblog’, 1xBet has previously spent copious amounts of money on its brand campaigning in the country to attract betting enthusiasts to its website.
This sports blog loophole has helped it evade authorities and has allowed it to freely advertise its products on major TV channels and streaming services.
In a report published earlier this year, a Norwegian sports magazine stated that 1xBet, which is one of the biggest sponsors in the world of football, was ‘declared bankrupt in the Caribbean island of Curacao’, where the company is registered.
Other betting platforms such as FairPlay as well are under regulatory lens for splurging big amounts of money in surrogate advertising during Asia Cup 2022 to attract users to its betting site.
This also comes days after enforcement directorate (ED) raided the premises connected to Kolkata-based online gaming app called e-Nuggets and seized INR 7 Cr from the promoters of the alleged fraud app.
Chance Vs Skill
Even though these betting platforms fall under the larger ambit of online gaming, many of the popular startups like to call attention to the detail, citing the difference between chance and skill.
“The question that has always remained in the online gaming space is whether it’s a game of skill or a game of chance. The other issue is whether the game involves real money or does not involve real money. The third thing is whether the game is something like betting on an event which has not happened thus far or may happen in the future. These are the three main issues,” a legal expert recently told Inc42.
The space also walks a tightrope between norms and legality owing to the regulatory quagmire of uncertain regulation governing the space.
Complicating matters further has been judicial intervention in a host of states regarding wagering in online games. From Karnataka High Court to Kerala HC, judicial bodies are currently debating whether online betting games such as rummy actually flout norms.
Amidst the regulatory wild west, the local residents are free to take a call on whether they can invest their money on these platforms.
