Quick Commerce or Quick cash? Zepto’s promotion of illegal betting firm Parimatch

Quick Commerce platform Zepto recently ran a promotional campaign for Parimatch, an offshore betting and gambling company. Despite strict guidelines prohibiting the advertising of illegal gambling platforms, Zepto not only promoted Parimatch but also went as far as including flyers in customer orders, essentially delivering gambling ads straight to people’s homes.

Regulatory bodies, including the Ministry of Information and Broadcasting, the Advertising Standards Council of India (ASCI), and the Department of Consumer Affairs, have all put forth strict measures to curb both direct and indirect promotion of illegal betting firms. Yet, some companies continue to disregard these rules in pursuit of profit.

Roland Landers, CEO of the All India Gaming Federation (AIGF), expressed deep concern over the rise of such unethical advertising practices. "It’s alarming to see quick commerce platforms—originally built to enhance convenience—now jeopardizing consumer safety by running unchecked gambling ads," Landers stated.

"In their race for quick profits, they are legitimizing illegal gambling operators, misleading consumers, and undoing years of regulatory progress. These platforms must be held accountable for what is essentially digital door-to-door solicitation for unlawful gambling. Innovation should never come at the expense of public trust, let alone by enabling offshore entities that blatantly violate Indian laws."

Zepto declined to comment on the issue.

Legal experts warn that Zepto could face serious consequences for its involvement in promoting such platforms.

Jay Sayta, a technology and gaming lawyer, explained "Zepto can be held liable under state gaming laws for promoting gambling apps, as well as under consumer protection laws for misleading advertisements. Additionally, under IT Act regulations, they could be forced to take down all gambling-related content. Given recent police action against influencers and others promoting illegal betting apps, authorities could very well take strong action against platforms like Zepto."

IT and Electronics Minister Ashwini Vaishnaw recently told Lok Sabha that the government has blocked 1,410 illegal gaming sites in 2024. Vaishnaw said the Centre has taken several initiatives against fraudulent gaming applications, however, state government has the power to make the legislative framework around such apps. He urged state governments to work together with the centre to combat the nexus of illegal gaming applications.

While legitimate gaming companies are currently engaged in legal battles regarding Tamil Nadu’s Online Gaming regulations, illegal gambling advertisements have begun to flood the market. Hoardings of Parimatch Sports, surrogate of illegal gambling platform Parimatch have sprung up at various prime locations in the state of Tamil Nadu.

A major Real Money Gaming (RMG) operator voiced frustration over the situation, "The Tamil Nadu government should be cracking down on illegal betting and gambling firms advertising in the state. Instead, they’re restricting legitimate gaming companies. It’s bizarre—while the Madras High Court hears our case, illegal betting companies are taking advantage and gaining more users through ads."

In March 2024, the Central Consumer Protection Authority (CCPA) issued a strict advisory under the Consumer Protection Act, 2019, reinforcing the prohibition of advertising or endorsing unlawful activities. Betting and gambling remain illegal in most parts of India under the Public Gambling Act, 1867, yet many offshore platforms continue to market their services—sometimes disguised as gaming.

The advisory emphasized the significant financial and socio-economic risks, particularly for young consumers. The Ministry of Information and Broadcasting has repeatedly warned media platforms against airing such advertisements, while online ad intermediaries have been advised to steer clear of targeting Indian audiences with gambling promotions.

Further reinforcing this stance, the Guidelines for Prevention of Misleading Advertisements and Endorsements (2022) explicitly prohibit advertising products or services that are illegal under existing laws.