Indian Government to Enforce Advertising Norms for Online Betting: IT Rules Amendment Ahead

In a determined effort to counter the inundation of online betting advertisements, the Indian government is on the verge of introducing new regulations under the Information Technology Rules.

These regulations will require publishers to strictly adhere to the Code of Advertisements. The move follows multiple advisories issued by the Ministry of Information and Broadcasting (MIB), urging social media platforms and advertising intermediaries not to host surrogate advertisements for online betting platforms.

This initiative is expected to be incorporated into the 'Code of Ethics and Procedure and Safeguards In Relation to Digital Media' section of the IT Rules, commonly referred to as the Digital Media Ethics Code Rules.

Enforcing Ethical Advertising

According to a senior government official, the forthcoming digital media guidelines will mandate that advertisements align with the advertising code. This development aims to address the proliferation of misleading and unlawful advertisements related to online betting.

Transitioning from Cable Television Network Rules

Historically, advertising norms have been governed by the Cable Television Network Rules of 1994. These norms explicitly prohibit advertisements that contravene constitutional provisions, promote criminal activities, or exploit social vices like dowry. The government's latest effort is intended to reinforce these regulations in the digital landscape.

Government's Advisory Stand

The government has persistently called upon entities to adhere to the Code of Advertisement through a series of advisories. These advisories underscore that online betting and gambling are illegal activities in most of India.

Betting and gambling is an illegal activity in most parts of India. In accordance with Paragraph 9 of the Guidelines for Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements 2022 under the Consumer Protection Act, 2019, it has been observed that since betting and gambling are illegal, advertisements of online offshore betting and gambling platforms are also illegal.

In this regard, it may be noted that in accordance with the Advertising Code under Cable TV Network Regulation Act 1995, advertisements of betting platforms, being an illegal activity, can not be shown on TV channels.

Impact on Advertising Platforms

Incorporating these mandates into the IT Rules will raise the bar for platforms and publishers. It will become more challenging for them to feature online betting advertisements that may contravene the advertising code.

Empowering Content Regulation

Under the Digital Media Ethics Code section of the IT Rules, the government has the authority to block content on platforms and issue warnings, censures, or admonitions to entities. This grants regulators the necessary tools to maintain the ethical standards of online advertising.

Complex Landscape of Online Betting

It is important to note that while gambling is prohibited in India under the Public Gambling Act, 1867, the regulation of online betting apps remains under the purview of individual states. States like Telangana and Andhra Pradesh have enforced bans on online betting activities.

Government's Proactive Measures

The Ministry of Electronics and Information Technology (MeitY) has previously taken urgent measures to block 138 online betting and gambling apps, acting on the recommendations of the Ministry of Home Affairs. Despite these restrictions, certain platforms have continued to promote their services in India, often employing prominent celebrities as brand ambassadors to endorse their betting platforms through surrogate products across various mediums.

Latest facts:

• The Indian government is set to introduce norms under the Information Technology Rules that will require publishers to adhere to the Code of Advertisements.

• This is in an effort to tackle the rampant online betting advertisements.

• The new mandate will likely be introduced under the 'Code of Ethics and Procedure and Safeguards In Relation to Digital Media' section of the IT Rules.

• The inclusion of this mandate in the IT Rules is likely to make it more difficult for platforms or publishers to publish online betting advertisements.

• The government has the power to block content on platforms, warn, censure, admonish, or reprimand entities under the Digital Media Ethics Code section of the IT Rules.

• While gambling is prohibited in India under the Public Gambling Act, 1867, online betting apps have remained a State subject, with Telangana and Andhra Pradesh banning such online activities.

• Earlier this year, the Ministry of Electronics and Information Technology (MeitY) issued orders to block 138 online betting and gambling apps on an "urgent" and "emergency" basis.

• Despite this ban, platforms such as Parimatch, 1xBet, WinBuzz, Fairplay, and Lotus365 have continued their promotions in the country.