Illegal Betting Advertisements Undermine Online Casino Segment in India: ASCI Report Blames Instagram

Illegal Betting Advertisements Undermine Online Casino Segment in India: ASCI Report Blames Instagram

The Advertising Standards Council of India (ASCI) has identified Instagram as the leading platform for illegal offshore betting advertisements. A staggering 890 ads promoting unregulated betting platforms were flagged between April and September 2024, with the majority originating from fan and community pages on Instagram. The ASCI, in collaboration with the Ministry of Information & Broadcasting (MIB), has intensified its efforts to combat this issue, achieving significant milestones in ad removal and complaint resolution timelines.

Illegal Betting Ads Surge on Instagram

Key Findings from ASCI: The ASCI report revealed that Instagram is the most popular medium for illegal betting operators targeting Indian audiences. Of the 2,830 illicit ads flagged during the reporting period, 890 were directly related to offshore betting platforms, with 831 being Instagram posts.

Redirect Mechanisms: These posts, primarily shared on fan and community pages, included tags and links that directed users to unregulated betting platforms. Additionally, ASCI identified 50 other websites and social media pages, along with nine influencers, actively promoting such illegal activities.

ASCI’s Collaboration with the Government Proves Effective

Ad Removal and Regulatory Action: Prompt intervention by ASCI, in close partnership with the Indian government, led to the takedown of several pages promoting illegal gambling. This collaborative approach underscores the importance of regulatory oversight in addressing the growing menace of offshore betting ads.

Manisha Kapoor’s Remarks: ASCI CEO Manisha Kapoor emphasized the regulator’s proactive role, stating, “Our work in partnership with government regulators in sectors such as betting…is creating an impact. While there is a long way to go, such partnerships are able to create an impetus for better oversight.”

Faster Complaint Resolution Enhances Consumer Protection

Streamlined Processes: ASCI has significantly reduced its average complaint resolution time from 30 days to 18 days, showcasing its commitment to efficient enforcement. This improvement allows for quicker action against high-priority violations, such as illegal gambling advertisements.

Leveraging Technology: Kapoor highlighted the use of technology in ASCI’s operations, stating, “ASCI’s deep experience and tech-supported efforts are evolving to provide better protection to the consumers of India.”

The Economic Impact of Illegal Betting Operators

Threat to State Revenue: Illegal gambling platforms not only pose risks to users but also undermine state revenue collection. Regulated operators in India are subjected to a 28% Goods and Services Tax (GST), which was increased from 18% in October 2023 by Prime Minister Modi’s cabinet.

Market Dynamics: The rise in illegal offshore betting undermines licensed operators, threatening the legitimacy of the industry and the financial contributions it makes to the state treasury.

Conclusion: Regulatory Vigilance Is Key to Combating Illegal Betting

ASCI’s report sheds light on the pervasive issue of illegal betting advertisements, particularly on Instagram. While the regulator has made strides in ad removals and complaint resolution, the fight against unregulated gambling remains an ongoing challenge. Collaborative efforts between ASCI and the government are vital to ensuring consumer protection and safeguarding state revenue from illegal operators.

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