ASCI escalates issue of illegal betting and gambling platforms' ads to MIB

The Advertising Standards Council of India (ASCI) has identified and shared 700 ads from illegal betting and gambling companies with the Ministry of Information and Broadcasting (MIB) between April and August 2024. Storyboard18 recently reported that Real Money Gaming (RMG) players have claimed that offshore illegal gambling firms have been using the Pro Kabaddi League (PKL) as a sporting platform for surrogate advertising.

In a letter to Sanjay Jaju, Secretary of MIB, Real Money Gaming (RMG) players raised concerns that illegal and offshore betting platforms like Melbet, Dafabet, Vegas11, Fun88, and 1xBet are engaging in surrogate advertising under names like Melbat, Dafanews, Vegas11 Sports News, Fun88 News, 1xbat, and Batery.AI.

The RMG operators also allege that Dafa News, a surrogate of Dafabet based in the Philippines, and Parimatch News, a surrogate of the betting platform Parimatch, based in Cyprus, are official partners of the PKL. Moreover, they claim that these platforms allow its users to place their bets on live PKL matches.

In 2024, Pro Kabaddi League viewership crossed the 200 million mark during its 90th match, making Kabaddi the second sport after cricket to reach this milestone multiple times. The Pro Kabaddi League (PKL) Season 11 kicks off on October 18, 2024.

Manisha Kapoor, CEO and Secretary General of ASCI, said, “We have raised the issue of betting and gambling firms advertisements with the MIB. We report it to the government by sending them ad links. We have also noted that in some cases, the links are not active anymore and the content has been pulled off by the platforms on being directed to do so by the government.”

Kapoor added, “In the 2023-24 financial year, we identified 1,311 ads for illegal betting and gambling. From April to August 2024, we have shared 700 such ads with the government.”

An RMG operator, speaking anonymously, said, “We are pleased that the self-regulatory body, ASCI, is taking a strong stance on curbing promotions of illegal betting and gambling companies. The government should take stricter action after receiving such complaints. We also plan to meet with MIB through our gaming federations to request an advisory be issued to broadcasters and streaming platforms to curb the surrogate advertising of these platforms.”

Finance Minister Nirmala Sitharaman said on Monday that GST collection from online gaming has increased by 412% in six months since October 1, 2023, when a 28% tax was imposed on these services.

A spokesperson from another RMG company stated, “As an industry, we are paying taxes to the government, while these offshore illegal betting and gambling companies are growing their user base through surrogate advertising and marketing strategies. If this issue is not addressed, many RMG companies will be forced to shut down.”

During a media briefing, Sitharaman mentioned that revenue from online gaming has surged by 412%, reaching ₹6,909 crore in just six months. This amount is compared to the ₹1,349 crore collected before the notification on online gaming was issued.