B4U Music recently aired advertisements for Melbet, a betting and gambling company. The airing of such ads directly breaches the guidelines laid out for advertising in India, highlighting a blatant disregard for consumer safety and legal norms. Despite stringent bans and regulations, companies like Melbet have found ways to reach Indian audiences through popular media channels.
Case of violation
On 3 October 2022, the Ministry of Information and Broadcasting (MIB) issued a strong advisory to private satellite TV channels, warning them against airing advertisements for illegal betting and gambling platforms. According to the advisory, “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 Cable TV Network Regulation Act of 1995 plays a crucial role in curbing illegal advertisements. As per this act, television channels are prohibited from broadcasting content that promotes illegal activities, including betting and gambling. The advisory for cable TV networks stated, “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 recent incident involving B4U Music and Melbet highlights the necessity of stricter enforcement of these guidelines to ensure that broadcasters do not engage in airing such illegal ads. Despite the seriousness of the situation, the Advertising Standards Council of India (ASCI) has remained silent on the issue. As one of the country’s primary bodies for regulating advertisements, ASCI is expected to take a strong stand on violations of advertising laws.
Reaction from gaming industry
Industry experts have expressed concern about the advertising practices of companies like Melbet. A spokesperson from a real-money gaming company commented that Melbet is involved in money laundering and tax evasion, making their presence in the Indian market even more alarming.
The spokesperson 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. 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 been at the forefront of advocating for a clean and regulated gaming industry in India. They have maintained a zero-tolerance policy towards illegal gambling and betting, actively working with government bodies to prevent the promotion of such activities.
Roland Landers, CEO of AIGF, said, “We have advocated against offshore gambling platforms since our inception and have always maintained a zero-tolerance policy towards 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) issued an updated advisory banning the advertising, promotion, and endorsement of betting and gambling activities disguised as gaming. Illegal betting and gambling have far-reaching economic consequences. A report from the United Nations Office on Drugs and Crime (UNODC) estimates the global illegal betting and gambling markets to be worth $350 billion and $1.7 trillion respectively.
The offshore sports betting market, which has grown significantly in India, receives approximately $100 billion in deposits annually. Since the pandemic, this market has seen a growth rate of 20 percent per year. The report also offers recommendations for stronger government interventions to address this growing concern.
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