ONLINE BETTING

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In News

The Union Ministry of Information and Broadcasting has asked Google to comply with its advisory to abstain from publishing or broadcasting advertisements on online betting platforms or displaying any surrogate product.
- Recently the Consumer Affairs Department also informed the Ministry that online betting platforms were advertising themselves as professional sports blogs, sports news websites, etc.
The Ministry asked the websites to be in strict conformity with the Guidelines for Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements-2022.

Guidelines on Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements, 2022

The Central Consumer Protection Authority (CCPA) under the Department of Consumer Affairs has announced the ‘Guidelines for Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements, 2022’.
The main objective of the guidelines is to regulate advertisements and protect consumers from misleading advertisements.
The Central Consumer Protection Authority (CCPA) has stated that misleading advertisements violate several rights of consumers.
- The CCPA has been established under the Consumer Protection Act, of 2019.
Misleading advertisement has already been defined under the Consumer Protection Act, of 2019.
- The current guidelines define “bait advertisement”, and “surrogate advertisement” and provide what comprises “free claim advertisements”.
The guidelines have been formed by keeping in view the sensitiveness and vulnerability of advertisements in Children’s minds.

Key points of the Guidelines

It prohibited advertisements from magnifying the features of a product or service in such a manner that promotes unrealistic expectations.
Prohibited the advertisements of such products or services that claim any health or nutritional benefits without being scientifically recognized by an authentic body.
Advertisements targeting children should not show any personalities from the field of sports, music or cinema for products that require a health warning or cannot be purchased by children.
Disclaimers in advertisements must not hide any information about the products and services.
Clear Guidelines are laid for manufacturers, service providers, advertisers and advertising agencies.
It aims to protect consumers’ interests by ensuring more transparency and clarity in published advertisements, so that, consumers could make informed decisions based on facts rather than wrong narratives and exaggerations.
CCPA can impose a penalty of up to 10 lakh rupees on manufacturers, advertisers and endorsers for any misleading advertisements.
- It may increase a penalty up to 50 lakh rupees for repetitive violations of the guidelines.
- It can prohibit the endorser of a misleading advertisement.

Betting

Gambling/betting includes any activity or undertaking whose determination is controlled or influenced by chance or accident or any activity or undertaking which is entered into or undertaken with the consciousness of the risk of winning or losing (eg, prize competitions, a wagering contract).
Critics of gambling claim that it leads to crime, corruption, and money laundering. However, proponents of regulated gambling argue that it can be a huge source of revenue for the state.

Law related to Gambling

There are no dedicated National Gambling Laws in India.
Gambling is a state subject. States are entitled to formulate their laws for gambling activities. Some states like Goa have legalised casinos.
The Public Gambling Act of 1867 is a central law that prohibits running or being in charge of a public gambling house. The penalty for breaking this law is a fine of ₹200 or imprisonment of up to 3 months. The Act also prohibits visiting gambling houses.
The Information Technology Act 2000 regulates cyber activities in India and does not mention the word Gambling or betting thereby the act was left for interpretation by the Courts which have refused to examine the matter.
Law Commission says that since it is impossible to stop illegal gambling, the only viable option left is to “regulate” gambling in sports.

Why Gambling should be legalized

Money generated through tax can be used for public welfare activities.
Empower authorized agencies to identify and prevent instances of gambling by minors.
Curb the menace of match-fixing.
Easier to monitor illegal betting activity in a regulated market.
Generating employment.
Development of tourism.
Help in controlling the money laundering business.

Why Gambling should not be legalized

Way Forward

Licensed Operation: Gambling and betting should be offered only by Indian licensed operators.
Any income derived from such activities should be made taxable.
Cap on gambling for each individual.
Protect vulnerable groups, minors and those below the poverty line, from exploitation through gambling.
Awareness & Information regarding the risks involved in gambling/betting must be displayed on all gambling and betting portals/platforms.
Encouraging foreign capital in the casino/online gaming industry.
The mode of the transaction must be Cashless.