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Synopsis

In a bid to address the growing concerns surrounding the promotion of offshore online betting and gambling platforms, the Ministry of Information and Broadcasting (MIB) has issued a stern advisory to all endorsers and influencers on social media to refrain from promoting or advertising, including surrogate advertisements, of offshore online betting and gambling platforms.

The advisory, issued on 21st March 2024, emphasises the significant financial and socio-economic implications of online gambling, particularly among the youth demographic.

Expanding its scope beyond influencers, the advisory also cautions online advertisement intermediaries against targeting promotional content towards Indian audiences. Additionally, social media intermediaries are urged to conduct sensitisation efforts among users to discourage the dissemination of such content.

Crucially, the Ministry warned that non-compliance with the advisory could lead to legal action under the Consumer Protection Act of 2019. Authorities are empowered to take punitive actions, “failure to comply… may lead to proceedings under the provisions of Consumer Protection Act, 2019, removal/disabling of social media posts/accounts where such promotional content/advertisements/endorsements are being published, and penal action under the applicable statutes,” the advisory states.

Highlighting the rampant illegality of offshore online betting and gambling platforms across many regions in the country, the Central Consumer Protection Authority (CCPA) had expressed concerns regarding celebrity and influencer endorsements promoting these activities. The CCPA underscored the rigorous scrutiny such endorsements would face, emphasising the prohibition of activities like betting and gambling through advertisements or promotions.

The advisory is underpinned by legal provisions outlined in Section 79 of the IT Act, 2000, which provides exemptions to intermediaries for third-party information hosted on their platforms. However, Sub-section (3)(b) of Section 79 stipulates that exemptions do not apply if intermediaries fail to expeditiously remove or disable access to unlawful content upon notification by the appropriate government or its agency.

In line with concerns raised by the Central Consumer Protection Authority (CCPA), the Ministry underscores its stance against surrogate advertisements. It emphasises that endorsements of online betting platforms, whether direct or indirect, are subject to rigorous scrutiny and potential legal repercussions.

Notably, the Ministry asserts its authority over online advertisements, empowering it to issue notifications to intermediaries, including social media platforms, to remove or disable access to content promoting offshore online betting and gambling platforms.

This recent advisory is not the first time the MIB has addressed online gambling promotion. Previously, the Ministry issued advisories restricting outdoor advertisements for betting platforms. However, the continued presence of such advertising online demonstrates the need for more comprehensive action.

Last year, the centre took a decisive action by banning 138 offshore betting platforms in a bid to stem the tide of illegal gambling operations. This move was followed by further measures as the Enforcement Directorate (ED) stepped in to address the issue of illegal online gambling. Under the Prevention of Money Laundering Act, 2002, the ED has attached a significant sum of Rupees 5.87 crore from several individuals and entities involved in facilitating illegal gambling activities.