Zepto faces heat for promoting offshore betting platform Parimatch
India based quick commerce platform Zepto is under regulatory spotlight after it ran a promotional campaign for Parimatch, an offshore betting platform, despite strict guidelines prohibiting the advertising of illegal gambling platforms. Flyers promoting Parimatch were reportedly included in customer orders, effectively delivering gambling advertisements to homes across the country.
The move has sparked concern among regulatory authorities, including the Ministry of Information and Broadcasting (MIB), the Advertising Standards Council of India (ASCI), and the Department of Consumer Affairs. All three bodies have issued clear advisories prohibiting both direct and indirect advertising of illegal betting services.
Flyers delivered with orders
Zepto, known for delivering groceries and daily essentials in minutes, included printed promotional material for Parimatch in its delivery boxes. These flyers marketed Parimatch’s gambling services despite repeated warnings from the union government against such practices.
The Ministry of Information and Broadcasting has, on several occasions, cautioned media platforms and digital intermediaries about advertising offshore betting platforms, stating such promotions mislead consumers and violate Indian laws.
Industry body flags concern
The All India Gaming Federation (AIGF) raised objections to the promotional campaign. Roland Landers, CEO of AIGF, stated that such actions undermine consumer safety and regulatory efforts.
“It’s alarming to see quick commerce platforms being used to promote illegal gambling operators. This not only misleads consumers but also legitimises unlawful platforms that violate Indian laws,” Landers said, according to Storyboard18.
Legal action likely
Zepto could face serious consequences under multiple laws. The company may be held liable under state-level gaming laws for promoting gambling services. It could also face penalties under the Consumer Protection Act, 2019, for misleading advertisements.
In addition, under the Information Technology Act, authorities could compel Zepto to remove all content linked to gambling promotions. Given the recent crackdown on influencers promoting similar apps, legal observers expect regulatory action against the platform.
Government blocks over 1,400 illegal gaming sites
Union Minister for Electronics and IT Ashwini Vaishnaw informed Parliament that 1,410 illegal gaming websites were blocked in 2024. He emphasised that the Centre has initiated several measures to tackle fraudulent gaming applications. However, he noted that state governments hold the legislative power to regulate betting and gambling.
Vaishnaw urged state authorities to coordinate with the Centre to curb the growing influence of illegal gaming operators.
Surge in surrogate advertising
In Tamil Nadu, hoardings and billboards promoting “Parimatch Sports,” a surrogate brand of the banned Parimatch platform, have appeared at prominent locations. These advertisements often bypass gambling laws by portraying betting services as sports or entertainment-related products.
Meanwhile, legitimate online gaming platforms are involved in ongoing legal challenges around Tamil Nadu’s online gaming regulations.
Consumer protection advisory in force
In March 2024, the Central Consumer Protection Authority issued a strong advisory under the Consumer Protection Act, warning businesses and influencers against endorsing illegal activities, including gambling.
