Offshore betting firms: TV promotion grew 20-fold, digital 14-fold in two years

Global gambling companies, currently under scrutiny by the Ministry of Information and Broadcasting (MIB) for allegedly posing as sports news platforms to promote betting in India through surrogate ads across various channels, have been conducting their business and promotional activities on a larger scale than many realize. Their advertising and promotional efforts have experienced significant growth over the past two years.

Data from TAM, up to the first week of October, reveals a staggering 20-fold increase in TV ad volume for international “sports news” platforms that also function as gambling firms. Additionally, their digital presence has grown 14-fold. Notably, print and radio media did not receive any advertisements from these companies, according to a TAM official.

The substantial growth occurred primarily between 2021 and 2022 (until October), a period when many other companies were cutting back on advertising budgets due to the pandemic-induced slowdown and subsequent inflation.

In an advisory dated October 3, the MIB identified offshore platforms such as Fairplay News, PariMatch, Betway, Wolf 777, and 1xBet for allegedly disguising themselves as news platforms to promote online gambling in India, despite gambling being prohibited in most states. Experts estimate that their advertising expenditures amount to hundreds of crores, with Roland Landers, CEO of the All India Gaming Federation (AIGF), suggesting an annual figure of ₹3,500 crores.

These companies established their presence in India a few years ago, and illegal offshore gambling has now become a substantial ₹5 lakh crores business in the country, as estimated by the AIGF.

In terms of advertising share, Parimatch News dominates TV with a 99% share, leaving the remaining portion to Wolf777. In the digital realm, Fairplay News holds two-thirds of the ad volume, with the rest going to Parimatch News, according to TAM data.

Reacting to the situation, the government, on October 3, called on TV and digital media platforms to refrain from publishing advertisements of online betting platforms online and on social media. This move aligns with a previous advisory issued in June, emphasizing the prohibition of betting and gambling in most parts of the country, citing significant financial and socio-economic risks, especially for youth and children. The government emphasized that the promotion of offline or online betting/gambling through advertisements is not advised in the larger public interest.