Gambling promotions seem to be everywhere these days. Whether it's casinos boldly displaying their logos on football jerseys or ads interrupting your favorite TV show, there's seemingly no escaping them. Adding to the challenge, celebrities like Nicki Minaj, Cristiano Ronaldo, and Paris Hilton constantly promote these promotions, painting gambling as a carefree, harmless activity.
In response, the Central Consumer Protection Authority (CCPA) has issued a cautionary advisory to celebrities and influencers, urging them to refrain from endorsing these illegal activities. According to the Public Gambling Act, 1867, betting and gambling are deemed unlawful in most regions across the country. Nevertheless, online betting platforms and apps persist in directly advertising betting and gambling, sometimes disguised as gaming, despite these regulations, as highlighted by the CCPA.
Additionally, Rohit Kumar Singh, who is the CCPA Chairman and Union Secretary of Consumer Affairs highlighted the misleading use of gambling ads. He explained that the way celebrities and influencers endorse this pastime as if it were simply 'gaming' without potential repercussions is harmful. Consequently, this could potentially lead more youth becoming susceptible to illegal activity. Chief Editor at BonusMonitor.com, Roy Carswell reiterated these concerns:
'Our job as a leading affiliate marketing site is not just limited to filtering out the 'good' casino bonuses from the 'bogus' ones. The industry as a whole has a set of stringent regulations and licensing prerequisites that vary from one jurisdiction to another. Therefore it is of utmost importance for operators and their partners to not only understand but adhere to the specific legal framework stipulated by each country. This not only allows companies to continue full operation but guarantees player safety.'
Repercussions
The CCPA's cautionary statement comes just a few months after the UK's Committee of Advertising Practice's decision to officially ban gambling ads featuring celebrities, sportspeople, and social media influencers who might appeal to children. This move aimed to address the escalating issue of gambling among young people.
If any breaches of the guidelines are identified, the CCPA will take strict action against the relevant stakeholders, including social media platforms, publishers and advertisers. as stipulated by the Consumer Protection Act of 2019. This isn't the first time the country has witnessed an industry crackdown, as the Ministry of Information and Broadcasting (MIB) has previously issued multiple advisories to reduce outdoor advertisements of betting and gambling platforms.
Last year, MIB secretary Apurva Chandra addressed chief secretaries of all states and UTs, urging them to curb outdoor ads. In the communication, he highlighted that betting and gambling are illegal in most regions of the country due to the financial and socio-economic risks they pose to consumers, particularly youth and children.
India banned 138 offshore betting platforms last year. Subsequently, to combat illegal online gambling platforms, the Enforcement Directorate (ED) also seized INR 5.87 Cr from various individuals and entities under the Prevention of Money Laundering Act, 2002.
Lotus365 Scandal
A number of Bollywood actors recently faced criticism for endorsing the banned betting website Lotus365. Actresses Kanika Mann, Sreemukhi, and Esther Anil all posted promotional content for the blacklisted site on their social media platforms, effectively endorsing it.
Lotus365 is just one among several betting companies that operate without physical offices in India, relying on mirror domains to reach consumers after the government blocked access to their websites.The endorsement of such illicit betting platforms by celebrities is highly irresponsible as they could be leading their fans who trust their opinion to unregulated danger.
However, there are individuals who remain unaffected by the claims of celebrities and openly criticize their promotion of illegal activities. Consequently, many celebrities now disable comments on promotional posts featuring banned betting platforms.
Do Celebrity Endorsements Actually Work?
With the rapid growth of the online gaming sector, celebrity endorsements have become a widely used strategy. But do they truly connect with consumers? Recent studies indicate that the majority of consumers don't see the value in such partnerships, as evidenced by the backlash Jamie Foxx faced for his collaboration with BetMGM. This could stem from the selection of the celebrity or simply a lack of familiarity with the industry. Regardless, celebrities don't wield as much influence when it comes to promoting online casino sites.
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