Ministry of Information and Broadcasting issues advisory on surrogate advertisements of online betting platforms

Posted 22 Mar 2024

2 min read

Key highlights
- Influencers on social media must refrain from promoting offshore online betting and gambling platforms in any form, including surrogate advertisements.
  - Surrogate advertisements are substitute advertisement for goods which cannot be directly advertised due to prohibition of law.
- Online advertisement intermediaries are advised against targeting such content to the Indian audience.
- Non-compliance may result in proceedings under Consumer Protection Act, 2019.

Earlier regulating provisions for the same:
- Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021.
  - It focussed on clear disclaimers and advertising targeting children.
- IT Act's Section 79 exempts intermediaries but mandates removal of unlawful content upon notification.
- Ministry of Information & Broadcasting can order intermediaries to remove illegal ads.
- Consumer Protection Act, 2019 enables action against stakeholders promoting illegal activities in ads.

Concerns:
- Addictive behaviour, social detachment, and emerging cybercrime trends.
- Regulatory ambiguity, money laundering and cyber-attacks.

Way forward: Strict monitoring, awareness campaigns, collaboration with social media platforms, celebrity engagement, and partnerships for responsible online behaviour to address online betting and gambling concerns.

Seventh Schedule Entry 34 empowers states to regulate Betting, and Gambling.
Public Gambling Act, 1867, Lotteries Regulation Act, 1998, and FEMA, 1999 are central laws governing gambling and income.
Finance Ministry imposes GST on online money gaming, casinos, and horse racing.

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