What can curb offshore online betting and gambling platforms' collabs with content creators?

Delhi: Proper monitoring of social media influencers’ content can help mitigate the issue of content creators endorsing offshore online betting and gambling platforms, as per experts in the influencer marketing domain.

Leading up to the IPL, on March 21, the Government of India issued an advisory for social media influencers, urging them to refrain from promoting offshore online betting and gambling platforms.

The Ministry highlighted the significant financial and socio-economic implications of online betting and gambling on consumers, particularly the youth. The advisory cautions that failure to comply may result in proceedings under the provisions of the Consumer Protection Act, 2019, including the removal or disabling of social media posts or accounts, and penal action under applicable statutes.

This isn't the first time the government has released advisories on this matter. Over the past two years, the Information and Broadcasting Ministry has cautioned influencers at least four times against promoting offshore online betting and gambling platforms. However, there has been no decline in such activities, particularly around the IPL season.

Vaibhav Gupta, Co-Founder and CPO of KlugKlug, said, "The Indian influencer space requires proper oversight, but we currently lack the necessary infrastructure to achieve this. Similar to the monitoring of OTT content, there should be a mechanism in place for content creators who are influential among the youth, particularly those focused on Reels and Shorts.”

He added, "The government ought to establish a monitoring mechanism for creators' content. For instance, Dubai has implemented a monitoring committee where creators must register and obtain a licence before creating content for brands. In some countries, KlugKlug is conducting test pilots for the government to oversee content and maintain control over obscenity."

A head of a talent management agency stated that, typically, an influencer with a million followers is paid between Rs 20,000-50,000.

However, a celebrity content creator informed BuzzInContent.com that many times these apps pay celebrities up to Rs 20-30 lakhs for collaborations.

He also mentioned that creators find it easy to work with such companies due to fewer compliance issues, quick turnaround, and lucrative compensation.

However, he shared that a majority of influencers delete promotional content from their platforms after a month or so, as they wish to avoid negative perception and non-compliance with influencers’ guidelines.

Rachit Juneja, Co-Founder of Sheeko, noted that the majority of influencer agencies and creators refrain from collaborating with gambling and betting apps. "However," he remarked, "every six months, a new wave of influencers, with substantial followings and new to the scene, may engage in such partnerships. Additionally, it is typically smaller talent management firms or individual talent managers that are more inclined to accept these opportunities."

He also mentioned that it is not the first time the government has cautioned influencers. "Previously," he added, "the government has issued warnings to finfluencers, but there has been no significant change in this aspect."

Likewise, Kulbir Sachdev, Founder and CEO of Voxxy Media, emphasised to BestMediaInfo.com, "We refrain from collaborating with gambling and betting clients, even when lucrative contracts are offered. It is crucial for the industry to acknowledge the government's perspective regarding the potential harm these enterprises can inflict on users and our economy."

Gupta shared that a majority of these influencers are associated with questionable content, possess fake followers, operate their own apps, and are typically overlooked by mainstream brands.

He further noted, "In general, it's observed that gambling platforms often employ female creators merely as models, with much of their content being vanity."

"In our assessment, many of these content creators endorsing betting apps produce borderline 18+ content. Additionally, they frequently release such content after 10 pm," he added.

For example, 

https://www.instagram.com/p/C4x7KJiPudU/

“On numerous occasions, we've received briefs from betting companies requesting creators with 3 million followers, who are simply required to wear the brand’s T-shirts and deliver a couple of dialogues," said Gupta.

Gupta added that gambling and betting apps significantly ramp up their use of influencers, particularly when the Indian Premier League begins. He also informed BuzzInContent.com that the majority of these creators' core audience hails from Tier 2 and 3 towns.

However, Gupta remarked that betting and gambling apps don’t utilise creators as influencers, but rather as a means to reach their target audience.

Expanding beyond content creators, offshore betting and gambling apps also utilise community and meme pages for promotion.

Gupta informed BuzzInContent.com that another crucial platform for offshore betting apps and gambling companies is YouTube. "We're aware of creators who produce humorous content, but integrate promotional slates for betting or gambling apps at the conclusion," he said.

Anuraag Saxena, CEO, E-Gaming Federation, said, “We applaud MIB’s recent advisory against increasing instances of direct as well as surrogate advertisements and endorsements of activities. This is a significant move to protect the players and industry at large from endorsements and ads that promote illicit gambling and betting platforms. E-Gaming Federation has been spearheading the efforts and constantly urged both federal ministries and state governments to curb the menace of these unscrupulous fly-by-night operators that have been flagrantly violating laws. We are committed to providing our full cooperation to the government in creating a standard framework that will support the growth of a regulated, sustainable sector that not only adheres to these advisories but also encourages responsible gaming.”

The advisory underlines that while Section 79 of the IT Act, 2000 provides for exemption from liability of intermediaries for third party information, data, or communication link made available or hosted by them, Subsection (3)(b) of section 79 provides that the exemption from liability shall not apply if upon receiving actual knowledge, or on being notified by the appropriate Government or its agency that any information, data or communication link residing in or connected to a computer resource controlled by the intermediary is being used to commit the unlawful act, the intermediary fails to expeditiously remove or disable access to that material on that resource without vitiating the evidence in any manner.