The online betting industry in India is experiencing significant challenges but is also demonstrating notable resilience through strategic rebranding and celebrity endorsements. Illegal betting companies, such as Parimatch and FairPlay, are evolving into sportswear brands while simultaneously receiving endorsements from well-known figures in the entertainment and sports sectors. Despite warnings issued by various governmental ministries regarding these illicit practices, the endorsements have continued, highlighting the exploitation of regulatory loopholes and the subsequent erosion of legal frameworks.
This trend has become particularly pronounced through digital advertising, influencer partnerships, and jersey sponsorships in sporting events ranging from cricket to kho kho. Noteworthy examples include cricketer Dinesh Karthik, who, after returning to professional play, rapidly accumulated brand endorsements, including sports apparel from Parimatch, which is managed by Prosports Wear Pvt. Ltd. Furthermore, the company has engaged in community support by raising funds for sports academies, indicative of their attempt to enhance public perception.
In addition, FairPlay India boasts a substantial following on social media platforms and promotes actor Jacqueline Fernandez as its brand ambassador, claiming to be “India’s most trusted platform” for sports betting. Similarly, actor Sonu Sood is associated with 1xBet Sporting Lines, which also presents itself as a clothing line. Various other sports figures have endorsed Parimatch Sports, benefiting from the substantial social media reach of these celebrities to connect with millions of potential clients, thereby solidifying the online betting platforms’ market presence.
Despite the regulatory scrutiny directed at these activities, including calls from the consumer affairs ministry for action against such advertisements, the betting platforms have adeptly maintained their visibility in the media landscape. Critics, including advertising professionals like Sandeep Goyal, assert that regulatory bodies, such as the Advertising Standards Council of India (ASCI), are largely passive unless a complaint is raised. He warns that without immediate intervention, these illegal advertisements may further entrench themselves in public consciousness.
The scale of illegal betting in India is substantial, with estimates indicating an annual market size of between $50-100 billion, resulting in considerable potential tax revenue losses. As pointed out by Dhruv Garg, a legal expert, the existing regulations prohibiting surrogate advertisements must be enforced more stringently to curb these illicit practices effectively.
Currently, there is ongoing debate regarding the legitimacy of certain product endorsements. Although ASCI has guidelines regarding brand extensions, some companies assert that their attire products are mere extensions of their betting brands. Legal experts are evaluating whether these practices contravene laws if advertisements inadvertently promote illegal betting activity.
Following advisories from the Union health ministry to cease endorsements of illegal betting products, it is concerning that certain sporting events still feature sponsorships from online betting companies. Celebrities continue to align themselves with these brands, which not only lends an air of legitimacy to illegal enterprises but also misleads their followers regarding the risks involved.
The All-India Gaming Federation (AIGF) has highlighted the danger posed by the regulatory gaps that allow these companies to flourish. As Roland Landers, CEO of AIGF, articulates, this ambiguity enables illegal platforms to thrive despite attempts from law enforcement to address these issues. There exists a pressing need for coherent regulatory frameworks that can effectively govern and mitigate the impact of online betting in India. Without stringent enforcement and improved public awareness, the potential for harm to society persists, necessitating decisive action from all stakeholders involved.
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