The Rising Tide of Real Money Gaming in India’s Festive Season: A Call for Regulation Amidst Advertising Frenzy
As the festive season approaches, the air is filled with excitement and fervor that is characteristic of such times. However, amidst the celebrations, one sector is grappling with challenges that threaten its integrity—Real Money Gaming (RMG). In recent times, a surge in Out of Home (OOH) advertisements from various gambling firms has prompted RMG companies to take action, urging officials to regulate this growing trend.
Gambling Advertisements: An Ominous Rise
The festive atmosphere has seen an upsurge in advertisements from notorious online gambling platforms such as 1xBet, Parimatch, Betway, and DafaBet, who have taken over the advertising landscape in major Indian cities like Delhi, Mumbai, and Bengaluru. RMG companies, which operate within the bounds of legality, have expressed their concerns about these aggressive marketing tactics employed by gambling firms. They argue that these ads are misleading and exploitative, using surrogate marketing methods that obscure the true nature of their businesses while broadening their outreach.
Government’s Response: A Letter for Action
In 2023, the Ministry of Information and Broadcasting (MIB) responded to these concerns by issuing an advisory aimed at curbing the menace of OOH advertisements associated with gambling firms. Apurva Chandra, Secretary of the MIB, noted that while gambling advertisements had been significantly curtailed across traditional print and digital media, there was a worrying trend of these ads now emerging in outdoor formats like hoardings and banners. The MIB’s advisory urged state Chief Secretaries to take appropriate actions to diminish the presence of such advertisements across urban landscapes.
Industry Perspectives: The Push for Intervention
According to an industry leader associated with an RMG platform, the festive season has reignited aggressive advertising strategies from gambling platforms. These ads are not just prevalent on television but are also omnipresent on both OOH and digital platforms. The urgency of the matter led RMG representatives to meet with MIB officials, seeking support to compel state secretaries and relevant departments to eliminate advertisements promoting gambling platforms.
An anonymous source from a leading gaming federation emphasized the detrimental impact of these advertisements on the reputation of legitimate RMG companies in India. Despite prior warnings from the government, the lack of decisive action against these illegal advertisements continues to be a pressing issue. The source expressed hope that the MIB would galvanize the industry by encouraging more proactive measures through regulatory advisories.
Concerns About Offshore Gambling Platforms
The RMG companies are particularly concerned about offshore betting platforms, which often operate using misleading surrogate names to skirt regulations. Platforms like Melbet, Dafabet, Vegas11, Fun88, and 1xBet have been known to leverage deceptive marketing techniques, further complicating the landscape for legitimate RMG operators. In a detailed letter to Sanjay Jaju, the MIB secretary, the RMG companies highlighted these issues, expressing their unease about the lasting impact of these illegal operations on the market.
The Scale of the Problem: Advertising Standards and Oversight
To combat this proliferation of undesirable advertisements, the Advertising Standards Council of India (ASCI) took steps to document the scale of the issue, identifying and listing over 700 ads from illegal betting and gambling companies shared with the MIB between April and August 2024. The data demonstrates the extent to which illegal advertising practices have permeated Indian cities, calling for immediate action from higher authorities.
The Financial Landscape: A Booming Market Fueling Advertising Growth
Interestingly, the RMG industry’s financial dynamics seem to be flourishing, even in the face of these regulatory challenges. In a media briefing, Finance Minister Nirmala Sitharaman revealed that online gaming revenue surged by 412% after a new 28% tax was instituted on these services on October 1, 2023. In just six months, the revenue reached ₹6,909 crore compared to a mere ₹1,349 crore before the intervention. This growth could potentially embolden unregulated firms to ramp up their advertising efforts, highlighting the need for a comprehensive regulatory framework.
Conclusion: A Call for Balanced Regulation
As the festive season unfolds, the challenges faced by the Real Money Gaming sector in India continue to grow. While the surge in usage and revenue is encouraging, the shadow of illegal gambling advertisements looms large. It is imperative for regulatory bodies, including the MIB, to strike a balance between promoting a healthy gaming industry and curbing the aggressive marketing tactics employed by unsanctioned entities. The RMG community is hopeful that through collaborative efforts with government authorities, a more transparent and responsible gaming environment can be cultivated, ensuring the sustainability and integrity of the industry in the long run.
