Surrogate gambling ads: The need for collaborative crackdown

The growing intersection of gaming and gambling advertising in India has created complex regulatory challenges, particularly around surrogate advertising, as offshore companies seek creative ways to reach Indian audiences despite restrictions.

According to Manisha Kapoor, CEO & Secretary General of the Advertising Standards Council of India (ASCI), the issue presents unique challenges compared to other sectors. "While gaming and its advertisements are permitted in the country, gambling faces an outright ban in most parts of the country," says Kapoor. She notes that offshore gambling companies are increasingly targeting Indian audiences through digital media and creating surrogates via news or sports channels.

The scale of the problem is significant - ASCI reported over 1,300 violative gambling advertisements to the government last year. "These companies are offshore organisations with no presence in India, the challenge of enforcement is significant," Kapoor explains.

Aarushi Jain, Partner at Cyril Amarchand Mangaldas, points out that India's consumer protection framework is comprehensive in addressing this issue. "India has strong consumer protection laws which restrict surrogate advertising for goods or services whose direct or indirect advertising is restricted under law," she notes. Jain adds that the 2023 amendments to the Information Technology Act rules have further strengthened these restrictions by specifically prohibiting surrogate advertising of non-permissible online real money games.

However, the regulatory landscape remains complex, particularly when it comes to enforcement. Suhael Buttan, Counsel at SKV Law Offices, draws parallels with historical challenges in regulating surrogate advertising. "The trend of surrogate advertising for online gambling platforms could be more complicated than alcohol and tobacco products," says Buttan, citing previous legal precedents including the TV Today Network Limited V Union of India case.

Looking ahead, the industry faces additional regulatory considerations with the introduction of new digital privacy laws. Buttan highlights that the upcoming Digital Personal Data Protection (DPDP) Rules may require gaming companies to modify their consent gathering procedures and advertising practices, particularly concerning children. He references the UN Human Rights Council's Special Rapporteur report, which emphasizes children's vulnerability to targeted marketing.

The challenge lies in striking a balance between legitimate gaming advertising and preventing surrogate marketing for gambling services. As Buttan observes, "While outright advertising of gambling apps may be banned, developers who make gambling apps may use disguised products to sell the same services."

ASCI's Kapoor remains optimistic about finding solutions through collaborative efforts: "We are confident that with the cooperation of the industry, platforms, government and ASCI, a long-term approach will evolve to handle these issues."

As the digital gaming landscape continues to evolve, the effectiveness of current regulations and the industry's ability to adapt to new compliance requirements will be crucial in shaping the future of gaming advertising in India.