Gambling apps bet big on billboards and Bollywood: Why do rules fall short?

Despite the strict ban on ads of illegal betting platforms, prominent public places like metro stations and markets continue to feature billboards that lure passersby with ‘Play & Win NOW!’ taglines. 

The craze for making windfall gains during Diwali season raises the popularity of illegal betting and gaming platforms, making these ads more conspicuous during festive times. Offshore betting players like W88, Parimatch, Lotus 365, XBet are seen even on digital platforms and mostly during unskippable gaming ad breaks.

These platforms are ready to pay huge amounts of foreign currency in all cash and 100% in advance, which lures intermediaries to take the risk by bypassing the strict laws, said a source. Recent data also suggests that betting platforms are growing more in India than in any other APAC country, targeting Gen-Z and rural-level audiences. 

Such billboard ads are usually seen around metro stations or smaller media locations like bus shelters.

What is more astonishing is, they even feature famous Bollywood celebrities and sports personalities. This is not only persuasive but also blurs the line between what’s legal and what’s illicit, potentially encouraging younger audiences to engage in these activities.

In India, consumer spending on sports betting increased from $105,000 in 2022 to $121,000 in 2023. In 2019, it was only $28,000, according to data.ai’s latest report. Moreover, sports betting apps have seen 19.4 lakh new downloads in 2023. 

The illegal betting market is already thriving in India and is expected to grow by 30% in the coming years. Such advertisements and inadequate legal actions only make it easier for offshore players to convince people to indulge in illegal activities. 

In a recent conversation, Praveen Vadhera, CEO of the Indian Outdoor Advertising Association (IOAA) observed, these players have taken some very creative ways to bypass some of the regulations that have been brought in by The Advertising Standards Council of India (ASCI), even by international regulation bodies.

In order to request assistance against the pervasive OOH gambling advertisements in cities, real-money gaming (RMG) players met with representatives from the MIB last week.

The concerning part is, while online advertisement intermediaries have been advised to steer clear of targeting Indian audiences, and the MIB has issued multiple advisories specifically instructing media and social platforms to refrain from advertising these platforms, the impact of these advisories seems limited. So, where is the regulatory oversight failing?

Manisha Kapoor, CEO & Secretary General of ASCI shared that although RMG ads are allowed, ads for betting—which is widely banned—exploit gaps in outdoor regulation and enforcement. Many of these ads use celebrities, which increases their appeal and impact, making them more influential on audiences, especially younger people.

“These ads are often handled by local vendors who may not be fully aware of or are compliant with government rules. Monitoring outdoor advertising is challenging due to the sheer volume and diverse locations across the country,” she added.

ASCI also flagged and reported 700 advertisements from illegal betting and gambling companies to the Ministry of Information and Broadcasting (MIB) between April and August 2024.

Subhash Bhutoria, Principal & Founder, Law SB, opines that the enforcement of these laws is significantly lagging behind. “Indian laws explicitly prohibit online gambling and casino activities, leaving no legal loopholes.” 

In fact, since October, 2022, MIB has issued at least 3-4 advisories to various stakeholdersto against broadcasting ads of online betting and gambling, but to no avail as such, he said.

One of the most critical challenges in enforcement is the extra-territorial nature of these operations, as per Bhutoria. Many online gambling and casino entities are based in offshore jurisdictions like Curacao, Malta, and the Isle of Man, making direct enforcement difficult.

"Additionally, the core issue lies in the outdated and fragmented nature of India's gambling laws, which fail to address the complexities of online platforms effectively. Betting and gambling in India are primarily governed by the Public Gambling Act of 1867, a colonial-era legislation that did not foresee the rise of the Internet or the digital economy. Although certain games of skill are exempt from this Act, the distinction between “skill” and “chance” is often exploited by companies," mentioned Kunal Sharma, Partner, Singhania & Co.

Online gambling apps have capitalised on legal grey areas to thrive in India, Sharma said. "The ambiguity stems from the fact that while gambling per se is prohibited, games of skill are legal. Companies like Dream 11 and MPL market their platforms as skill-based gaming to evade gambling restrictions".

Additionally, Sharma pointed out that each state in India has the authority to enact its own laws regarding gambling, leading to inconsistencies. States like Nagaland and Sikkim have allowed regulated online gambling for games of skill, while others, like Andhra Pradesh and Tamil Nadu, have implemented outright bans. This inconsistent regulatory landscape has created opportunities for these apps to operate in compliant jurisdictions while advertising nationally, further muddying enforcement efforts.

How to defeat the defaulter? 

Vadhera of IOAA suggests this is a larger issue and requires a larger intervention from the government. It is not just enough for ASCI to come down and put regulations against it because it is only becoming effective on TV as far as ASCI is concerned. 

“Industry bodies like the IOAA can help ensure compliance by educating members on advertising self-regulation and legal guidelines, promoting adherence to government rules. In the end, a collaborative approach between all the stakeholders is crucial for effective enforcement,” suggests Kapoor.

An insider suggests, “If we give a mandate that there should be 10-20% of creatives allotted to this, that should solve the purpose because you cannot stop the brand from advertising. It is better that they advertise for the growth of the industry and warn people clearly that it involves risk.”

First and foremost, legislative reform is crucial. Sharma said, "India needs comprehensive and updated legislation that addresses online gambling directly, closing existing gaps between skill-based gaming and chance-based gambling. The formation of a centralised regulatory body dedicated to overseeing online betting and gambling could streamline enforcement efforts. This authority could implement licensing systems, set clear advertising guidelines, and enforce age restrictions stringently".

According to Bhutoria, “To mitigate this issue, authorities could issue directives to app stores and internet service providers (ISPs) to block access to such websites and platforms within India. Additionally, stricter regulations on payment gateways could hinder financial transactions to these offshore entities.”

By addressing these areas, the government can effectively curb the growth of illegal online gambling and protect Indian consumers.