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With the ongoing festive season, Real Money Gaming (RMG) companies are facing challenges as Out of Home (OOH) advertisements from gambling firms continue to rise. Recently, RMG players met with officials from the Ministry of Information and Broadcasting (MIB) to request intervention against the widespread OOH gambling ads in cities.

Numerous gambling platforms, including 1xBet, Parimatch, Betway, and DafaBet, have been advertising heavily on billboards and cabs across major cities like Delhi, Mumbai, and Bengaluru. RMG companies have urged the MIB to advise government bodies to restrict these advertisements, which often use surrogate methods to expand their reach and attract new users.

In 2023, the MIB issued an advisory to state Chief Secretaries to curb menace of OOH ads by notorious gambling and betting firms. Apurva Chandra, Secretary of the MIB, cited previous ministry advisories against betting advertisements in traditional media. The letter noted, “While gambling advertisements have largely been curtailed in mainstream print, electronic, and digital media, it has come to our attention that some betting platforms are now utilizing outdoor media like hoardings, posters, banners, and auto-rickshaw branding to promote their websites/apps in India. It is therefore requested that appropriate actions be taken to curb these outdoor advertisements of betting and gambling platforms.”

An industry leader from an RMG platform shared, “With the festive season, notorious betting and gambling platforms have resumed their aggressive advertising and marketing strategies. These ads are not only back on television but are also omnipresent across OOH and digital platforms.”

The source added, “Our meeting with MIB officials aimed to secure their support in urging state secretaries and relevant departments to remove such advertisements promoting gambling and betting platforms.”

Another leader from a leading gaming federation on condition of anonymity said, "This issue continues to harm the reputation of legitimate companies operating in India. Despite multiple reminders from the government, there is a lack of proactive measure to curb advertisements on OOH platforms and on Digital mediums. MIB can help the industry by just nudging them to take proactive action via their advisories." 

"We are hopeful that MIB will help the already burdened industry to tackle the menace of illegal gambling advertisements." 

In a letter to Sanjay Jaju, Secretary of the MIB, RMG companies had expressed concerns about offshore and illegal betting platforms such as Melbet, Dafabet, Vegas11, Fun88, and 1xBet, which use surrogate names like Melbat, Dafanews, Vegas11 Sports News, Fun88 News, 1xbat, and Batery.AI.

The Advertising Standards Council of India (ASCI) had identified and shared 700 ads from illegal betting and gambling companies with the Ministry of Information and Broadcasting (MIB) between April and August 2024. 

It should be noted that during a media briefing, Sitharaman mentioned in six months since October 1, 2023, when a 28% tax was imposed on these services, the 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. 

RMG firms to MIB: Stop betting sites from promoting through outdoor ads

At the ongoing second edition of the Indian Gaming Convention, hosted by the Internet and Mobile Association of India (IAMAI), Brijesh Singh, Principal Secretary to the Chief Minister of Maharashtra, advocated for specific legislation on online gambling. He also mentioned that a Human Cybercrime Protection Policy would soon be introduced to enhance enforcement by agencies.

During the panel discussion, “Emerging Cyber Threats from Unchecked Online Betting and Gambling,” Singh stated, “We need to have a specific act on online gambling. We should examine how society operates and then establish an appropriate set of regulations. There is a need to reassess the existing gambling legislation.”

“On the enforcement side, I believe we need both capacity and capability. We also need a real-time flow of information with law enforcement. We will soon have a Human Cybercrime Protection Policy,” Singh added.

He continued, "As we embrace the digital era, it is critical to ensure that our people are protected from the emerging cyber threats associated with online betting and gambling. Technological advancements are becoming stronger, and while they offer great potential, they also bring increased risks.”

“We must implement proactive measures, including contextual warnings on apps, to safeguard users from falling victim to these threats. Our responsibility is to create a safe and secure online environment for everyone," Singh further stated.

Vivan Sharan, Partner at Koan Advisory Group, moderated the discussion, which also featured Vinit Goenka, Founder Secretary of the Center for Knowledge Sovereignty.

Speaking on online gambling, Vinit Goenka said, “Different states have different approaches, but there is a need for uniform reforms at the central level that identify gaps. We should allocate a small portion of the revenue generated by a state to create awareness. There must be a robust mechanism for consumer protection.”

‘We will soon have a Human Cybercrime Protection Policy’, says Brijesh Singh, Principal Secretary, Maharashtra Govt

The state of Tamil Nadu has finally clarified its stance, with the government introducing esports and free-to-play games such as Battlegrounds Mobile India (BGMI), FIFA, e-cricket, basketball, and online chess as part of the Chief Minister’s Trophy, scheduled for October 18. This initiative once again indicates challenging times ahead for Real Money Gaming (RMG) operators in the state.

N. Muruganandam, Chief Secretary of the Tamil Nadu government, had hinted at banning certain games and noted that online gaming addiction among children has grown, leading to harmful effects. Including esports in the CM's trophy clearly showcases Tamil Nadu government's plan to restrict pay to play games in the state. 

Storyboard18 was the first to report that the Tamil Nadu government is considering an Australia-like gaming policy, which would age-restrict social media and gaming platforms.

A spokesperson from Skyesports stated, “We are glad to have collaborated with the Tamil Nadu government to promote esports and free to play video games. We will begin calling for registrations next week. This will be free-to-play for all participants. The CM’s trophy is considered one of the premier state events in Tamil Nadu.”

With this initiative, the government has clearly sent a strong message that free-to-play video games are not viewed as a major threat. Gambling and betting platforms are already banned in the state, and the government now plans to impose restrictions on RMG operators. Failure to adhere to these restrictions will lead to the banning of websites and apps.

An RMG operator that Storyboard18 spoke to said, “It is now clear that the Tamil Nadu government will focus on RMG operators. We have taken a strong stand before, and we will seek legal recourse if any government policy is unconstitutional. It’s more of a wait-and-watch situation for us now.”

Recently, the Tamil Nadu Online Gaming Authority (TNOGA) also took a firm stance against gambling firms, initiating legal action against over 12 YouTubers, Instagram influencers, and a private firm for promoting online betting and gambling. If convicted under the Tamil Nadu Online Gaming Act, they could face fines ranging from five to ten lakh rupees and up to three years in prison.

Moreover, Tamil Nadu is set to introduce new regulations for online gaming, which may include daily time and spending limits. The Tamil Nadu Online Gaming Authority, established last year, has recommended that online gaming be banned between midnight and 5 a.m., with a daily play limit of four hours and each session restricted to two hours.

Under the proposed rules, players may be limited to spending no more than Rs 5,000 per day and Rs 20,000 per month on gaming platforms. Additionally, mandatory Aadhaar verification is expected to be introduced for all registrations on these platforms.

It’s important to note that in November 2023, the Madras High Court struck down the law banning online money games like rummy and poker in the state, declaring the law "unconstitutional."

A bench comprising Chief Justice S.V. Gangapurwala and Justice P.D. Audikesavalu stated that while the state government has the authority to create rules to limit the time spent on online games or to set age restrictions for both games of chance and skill, it can only ban games of chance, not games of skill.

The court further clarified that the Act could not be used to ban skill-based games like rummy and poker.

Esports get the green light, but RMG faces red flags in Tamil Nadu

With the festive season approaching, illegal betting and gambling platforms are aggressively advertising in India to acquire users. Despite the ban on advertisements of gambling and betting companies, B4U Music, one of India's leading music channels, aired advertisements of the betting and gambling company, Melbet.

On October 3, 2022, the Ministry of Information and Broadcasting issued an advisory to private satellite TV channels stating, “Betting and gambling are illegal activities in most parts of India. As per Paragraph 9 of the Guidelines for Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements 2022, under the Consumer Protection Act, 2019, since betting and gambling are illegal, advertisements for online offshore betting and gambling platforms are also illegal.”

The advisory further clarified, “In this context, it is important to note that according to the Advertising Code under the Cable TV Network Regulation Act, 1995, ads for betting platforms, being illegal activities, cannot be aired on TV channels.”

The Advertisement Standards Council of India (ASCI) has declined to comment on the issue.

Storyboard18 also reached out to B4U Television Network India Limited for a statement. The story will be updated with the company's response. 

A spokesperson from a real-money gaming company stated, “Despite advisories issued by the Ministry of Information and Broadcasting (MIB) and other government bodies banning the advertisement of betting and gambling companies, popular TV channels like B4U Music are violating the law by airing ads of notorious betting firms.”

The spokesperson added, “Melbet is one of the notorious platforms involved in money laundering and tax evasion in our country. The government should take stringent action to curb such activities.”

The All India Gaming Federation (AIGF) has now decided to escalate the issue to the government. Roland Landers, CEO of AIGF, said, “We have advocated against offshore gambling platforms since our inception and have always maintained a zero-tolerance policy toward any activity promoting illegal gambling or betting. We are committed to supporting the government and law enforcement agencies in enforcing these prohibitions.”

Landers continued, “We have an active compliance and monitoring system. By working closely with our members, industry partners, and other stakeholders, we track trends and regularly report instances of illegal activities, including ads from unregulated platforms. While we do not have direct regulatory authority over broadcasters, we actively engage with stakeholders to ensure compliance with advertising laws and guidelines.”

In March 2024, the Central Consumer Protection Authority (CCPA), under the Ministry of Consumer Affairs, issued a strict advisory banning the advertising, promotion, and endorsement of such illegal activities, including betting and gambling disguised as gaming.

Under the Consumer Protection Act of 2019, the CCPA prohibits the endorsement of illegal activities such as betting and gambling.

According to the 2021 Global Report on Corruption in Sport from the United Nations Office on Drugs and Crime (UNODC), the size of the illegal market for betting and gambling is estimated to be around $350 billion and $1.7 trillion, respectively.

Think Change Forum (TCF), an independent think tank, had released a report titled “State of the Betting and Gambling Industry in India.” According to the report, the offshore sports betting market receives an estimated $100 billion annually in deposits from India and has been growing at 20 percent per year in the last three years post-pandemic.

EXCLUSIVE: B4U to face music for airing illegal betting and gambling platform’s ads

The Real Money Gaming (RMG) operators have submitted data of over 540 illegal betting and gambling firms to Directorate General of GST Intelligence (DGGI) for operating in India. Recently, the DGGI in its report said that real-money online gaming companies are the largest tax evaders amounting to Rs 82,000 crore. 

According to DGGI, real money online gaming companies constituted 41 percent of the total Rs 2 lakh crore evasion uncovered this year. In its report, the DGGI mentioned that offshore companies include various online casinos based in tax havens like Malta, Cyprus, Curacao, and the British Virgin Islands remain uncooperative and seem to intentionally avoid tax compliance. While other entities are difficult to trace, as they operate through VPNs or cloud-based platforms. 

The RMG operators submitted list of over 540 illegal websites and apps since the implementation of 28 percent tax regime from October 1, 2023 till date. The notorious illegal offshore betting and gambling companies change their domain names and resume their business operations in India. The DGGI is now collaborating with foreign governments to block websites and apps operating from the foreign soil. 

A senior official from RMG industry on condition of anonymity said, “We keep tracking on activities of illegal betting and gambling websites and applications. Recently, we found that a new group of users including minors was part of a Telegram group placing bets on an illegal offshore betting website. We have reported the same to the DGGI and the group now has been shut.” 

The official said, “We collect IPs and links which are submitted to DGGI. They later send it to MeitY to block the domains. In certain cases we have also baited these illegal operators to communicate with us. They openly claim that we do not charge any GST or taxes on placing bets.” 

Centre blocked a total of 581 apps in December last year- 174 of which were betting and gambling apps, and 87 were loan lending apps. Some of the apps that were banned included Mahadev, Parimatch, Fairplay, 1XBET, Lotus365, Dafabet and Betwaysatt.

It is to be noted that the offshore sports betting market receives an estimated $100 billion annually in deposits from India and has been growing at 20 percent per year in the last three years post-pandemic, according to a Think Change Forum (TCF) report.

Despite best enforcement efforts, the illegal offshore betting industry (under the new GST regime) will continue to grow at 20 percent at the least, leading to a tax loss figure of Rs 6,72,205 crore by 2026, the report noted.


RMG players submit list of 540 illegal betting and gambling firms with DGGI

The Directorate General of GST Intelligence has suggested that there is a need for an arrangement with foreign governments to tackle tax evasion in Online Information and Database Access or Retrieval (OIDAR) services like online gaming. Such arrangement with foreign government will also help blocking websites of notorious illegal gambling and betting websites. 

Recently, the Directorate General of GST Intelligence (DGGI) has detected 6,084 cases of tax evasion totaling Rs 2.01 lakh crore in the financial year 2023-24. According to its annual report, real-money online gaming companies are the largest tax evaders, responsible for Rs 82,000 crore, which constitutes 41% of the total Rs 2 lakh crore evasion uncovered this year.

The DGGI Annual Report states that actions have been taken against 118 domestic online gaming companies, with Show Cause Notices issued to 34 taxpayers, involving tax amounts of Rs 1,10,531.91 crore. The GST department is investigating 658 offshore online gambling companies. 

OIDAR services includes a wide array of services viz cloud services, digital content, online gaming, online advertising etc. When such services are provided by an offshore entity to a non-taxable recipient, the supplier becomes liable for obtaining registration and discharging GST on the same.

Currently, as many as 574 offshore entities providing OIDAR Services have registered themselves with the GST department, and annual revenue from this sector has increased from Rs 80 crore for the FY 2017-18 to Rs 2,675 crore for 2023-24 fiscal.

The Directorate General of GST Intelligence (DGGI) in its annual report noted that since the OIDAR service providers are located abroad it becomes a challenge in GST enforcement and hence the sector remains relatively untapped and holds tremendous revenue potential.

On dealing with such offshore suppliers, it has also dawned that several such suppliers are ignorant of the law, and upon conveying the legal position clearly, such suppliers agree to comply with the GST mandate, it said.
These include the likes of Udemy Inc (USA), Canva Pty (Australia), OVH group (France), Blackboard (Netherlands) etc who registered themselves following efforts of DGGI and discharged significant tax liability.

"However, there are other entities that are non-cooperative and appear to intentionally avoid tax compliance. These include various online casinos based out of tax-havens like Malta, Cypress, Curacao, BVI etc. There are also other entities that are difficult to reach out to on account of them operating through VPN or cloud-based platforms," the DGGI said.

The GST intelligence wing said that unique challenges in tax enforcement in this sector necessitate out-of-the-box interventions to plug revenue leakage.

The DGGI suggested steps like registering with the KODEX platform to receive the data/information in respect of offshore suppliers, as well as coordination with the Reserve Bank of India to obtain relevant data pertaining to forex transactions. 


DGGI will shake hands with foreign govts to crack whip on offshore gambling firms

The Directorate General of GST Intelligence (DGGI) has detected 6,084 cases of tax evasion totaling Rs 2.01 lakh crore in the financial year 2023-24. According to its annual report, real-money online gaming companies are the largest tax evaders, responsible for Rs 82,000 crore, which constitutes 41% of the total Rs 2 lakh crore evasion uncovered this year.

The DGGI Annual Report states that actions have been taken against 118 domestic online gaming companies, with Show Cause Notices issued to 34 taxpayers, involving tax amounts of Rs 1,10,531.91 crore. The GST department is investigating 658 offshore online gambling companies

Meanwhile, the GST department has collected Rs 2,675 crore from 574 offshore entities offering digital services to Indian entities in FY24. This revenue from offshore entities has risen from Rs 80 crore in FY 2017-18 to Rs 2,675 crore in FY24.

The report highlights companies such as Udemy Inc. (USA), Canva Pty (Australia), OVH Group (France), and Blackboard (Netherlands) as those who registered with the DGGI's efforts and fulfilled significant tax liabilities. However, the DGGI notes that some entities remain uncooperative and seem to intentionally avoid tax compliance.

These offshore companies include various online casinos based in tax havens like Malta, Cyprus, Curacao, and the British Virgin Islands. Other entities are difficult to trace, as they operate through VPNs or cloud-based platforms.

The detection of GST evasion by the DGGI has been steadily increasing since the implementation of GST in 2017. In 2017-18, Rs 7,879 crore was detected, followed by Rs 19,319 crore in 2018-19, Rs 21,739 crore in 2019-20, Rs 31,908 crore in 2020-21, and Rs 50,325 crore in 2021-22.

DGGI investigating 658 gambling companies, reports Rs 82k crore tax evasion by online 'gaming' companies

Meta had updated its WhatsApp Business messaging policy to allow companies from regulated sectors such as alcohol, online gambling and over-the-counter drugs in India, APAC and LATAM. Storyboard18 first broke the news about Meta’s plan to open three new verticals for companies from these sectors to use the WhatsApp Business platform to send promotional messages to users in these regions. 

For Real Money Gaming and Gambling provisions, in India, Meta’s updated policy says, WhatsApp Business messaging that promotes online gambling and gaming must comply with all applicable local laws, required or established industry codes, guidelines, licenses and must comply with age and country requirements consistent with applicable local laws. Messaging may not be sent to people under 18 years of age. For Real Money Gambling and Gaming in India state-specific restrictions will be applicable. 

Lauding Meta’s move, Roland Landers, CEO, All India Gaming Federation said, “AIGF welcomes Meta's decision to allow real money skill gaming businesses to utilize the WhatsApp Business platform for promotional messaging. This move marks a significant step forward for the online gaming industry, particularly for MSMEs, who will benefit immensely from the enhanced reach and engagement this platform provides.” 

Landers further said, “By enabling direct communication with a broader audience, Meta is paving the way for growth and innovation within the sector.”

In India, gambling is allowed in certain states. 

It should be noted that advertising for alcohol is heavily regulated across the country, which prompts brands to resort to tactics like surrogate advertising. 

Meta has not included India in the list of countries allowed to promote alcohol on its platform. 

Ishan Varshnei, CEO of Latambarcem Brewers said, "The restrictions on alcohol advertising in India have historically been a challenge, pushing brands to explore innovative marketing approaches. In light of this, navigating this new landscape requires a thoughtful and strategic approach." 

He added, "Responsible messaging, strict adherence to legal guidelines, and a focus on building brand affinity through genuine engagement will be critical. While Meta’s policy doesn’t fully lift the limitations, it certainly provides more flexibility to showcase the craftsmanship, culture, and community that define our products.”

Varshnei further said, “For us, it’s not just about advertising—it’s about connecting authentically with consumers who appreciate the blend of tradition and innovation that our products represent. This move is a step in the right direction, and we’re excited to leverage it to further enhance our brand presence while remaining aligned with ethical and legal guidelines."

Messages that promote alcohol are not permitted in India as companies in the regulated sector are prohibited from sending messages through the WhatsApp Business app or providing any commerce experiences to buy or sell goods or services.

As per the new policy, businesses also have to ensure that messages sent by them comply with legal age restrictions, geographic requirements and regulatory standards through technical and organisational measures. However, certain users could see a different policy on the internet with gaming and not gambling permitted in India. 

Meta's policy change comes as the Mark Zuckerberg company is looking to accelerate monetisation from WhatsApp which is currently the world's most popular messaging app with over 2 billion daily active users across the world and India over 500 million users.


Meta updates policy: RMG brands rejoice, alco brands ditched

Amidst ongoing debate on Meta’s policy for alcohol and gambling ads in India, Kerala Police has sent a notice to Google and Meta over apps and ads that are linked to gambling websites and apps. The victims of the scam received messages from gambling operators on WhatsApp. Storyboard18 broke the news on Tuesday about Meta's policy to allow alcohol and gambling advertisements on their platform. 

Kerala state police has asked Google to remove 60 fake lottery and gambling apps from its Google Play Store. A similar notice has been sent to Meta to remove advertisements of such fake lotteries and gambling platforms from social media platforms such as Facebook, Whatsapp and Instagram managed by it.

Kerala’s State Police Media Centre (SPMC) said that fake advertisements in the name of 'Kerala Megamillion Lottery' and 'Kerala Summer Season Dhamaka' have been circulating on social media platforms like WhatsApp, Telegram and Instagram for some time stating that lotteries run by the state government can be bought online.

“After a cyber patrolling, we discovered 60 apps, 25 fake Facebook profiles and 20 websites that are connected to the scam”, the SPMC officer said. 

A senior leader from Real Money Gaming industry said, “These scam advertisements are taking place on the Meta and Google platforms. Imagine once these betting and gambling are legitimized, these scams will grow in large numbers. This will affect crores of people in India and they might get scammed.” 

According to police, victims of the scam received messages via WhatsApp which claimed that the Kerala government has started an online lottery and on spending Rs 40 rupees there is a chance to win up to Rs 12 crore. Victims who send Rs 40 on the number mentioned in the message get a fake lottery ticket image via WhatsApp.

The fraudsters then send artificially fabricated results to make the victim believe that the ticket has won a prize of Rs 5 lakh. From here, a scammer posing as a government representative calls the 'ticket holder' and asks them to transfer a certain amount to a bank account towards 'GST' and 'stamp duty' to receive the prize money.

The Kerala police have urged the public to be careful not to fall prey to such online lottery and gambling scams and to immediately call on the number 1930 if they suspect that a financial fraud is taking place.


Kerala police issues notice to Google, Meta over gambling advertisements

Real Money Gaming players in India were left stunned after an internal email on Tuesday announced that the big tech firm, Meta will allow alcohol and real money gambling businesses to promote and market their activities on their platforms. Conversational engagement platform Gupshup confirmed Storyboard18 that an email was sent on behalf of Meta to its internal clientele. 


From August 27, 2024, businesses in India can onboard WhatsApp Business Platform for messaging in the verticals such as Alcohol and Real Money Gambling. 


The email states, “We are excited to announce that starting August 27, 2024, businesses in India, APAC, and LATAM can onboard the WhatsApp platform for messaging in the following verticals: a) Alcohol b) Over-the-counter products (Prescription drugs and medical devices are still prohibited) c) Real Money Gambling.”


Meta’s updated policy now permits these verticals for both promotions/marketing and utility use cases, though WhatsApp Commerce restrictions will still apply.


A senior official from Gupshup confirmed that the email was sent internally to its clients. The official refused to comment. 


“This is disappointing. On one hand, the entire RMG industry is struggling, and now Meta wants offshore gambling platforms to advertise on their platforms. The industry will not take this lightly and will oppose this move. We will take legal action against such practices,” said a senior official from a fantasy gaming platform.


Storyboard18 has reached out to Meta. The article will be updated with the company's official comments.


<strong>Read More:</strong> <a href="https://www.storyboard18.com/advertising/breaking-meta-to-allow-alcohol-real-money-gambling-ads-on-its-platforms-in-india-40004.htm">BREAKING: Meta to allow Alcohol, Real Money Gambling ads on its platforms in India?</a> 


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