The Advertising Standards Council of India (ASCI) has raised concerns about Instagram’s role in promoting advertisements for illegal gambling operators. In its latest report, the council highlighted the platform’s appeal to offshore betting platforms and influencers, shedding light on the challenges of tackling this growing menace.
A growing concern in India
Illegal advertisements have surged in recent years, with offshore betting platforms exploiting the reach of social media to target Indian audiences. Between April and September 2024, ASCI processed over 2,830 illegal ads, of which 29 percent were linked to gambling.
These platforms not only pose risks to consumers but also evade government taxes, depriving the state of critical revenue. Their ability to blend into legitimate content on social media makes regulation a daunting task.
ASCI found that 831 posts on Instagram used deceptive tags and fan pages to funnel users to offshore betting websites. Instagram’s massive user base, visual appeal, and algorithm-driven content discovery make it a prime target for illegal advertisers. The platform’s engagement-focused model enables these operators to capture attention quickly.
These posts utilise tags like #EasyMoney or #BetNow to entice users. Clicking on these tags redirects individuals to unregulated betting platforms operating outside Indian jurisdiction. These posts often disguise themselves as entertainment or sports-related content, masking their true intent.
ASCI’s collaborative efforts with government
ASCI’s collaboration with government regulators has led to the prompt removal of several illegal pages. This partnership ensures faster identification and action against violators. Through ASCI’s intervention, hundreds of pages promoting illegal gambling have been taken down, sending a strong message to operators.
Manisha Kapoor, CEO of ASCI, stated, “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 can create an impetus for better oversight.”
ASCI has significantly reduced its complaint resolution time from 30 days to 18 days. This improvement allows for quicker action against higher-order violations. Leveraging advanced technology, ASCI has enhanced its ability to detect and address illegal advertising at scale.
Kapoor further added, “With constant progress in reducing our turnaround time for complaint management, ASCI’s deep experience and tech-supported efforts are evolving to provide better protection to the consumers of India.”
By evading the 28 percent GST levy imposed on legal operators, these platforms undermine the state treasury, exacerbating economic losses. ASCI advocates for enhanced collaboration between social media platforms, law enforcement, and regulatory bodies to curb illegal advertising.
