Recently, Hyderabad’s West Zone Police filed criminal charges against 11 social media influencers, including three women, for allegedly promoting betting apps. This highlights the growing problem of online gambling promotion and violations of gambling laws, particularly the Public Gambling Act of 1867. These cases are not isolated but reflect broader regulatory challenges nationwide.
The Government of Telangana is deploying its Cyber Crime Division and Financial Cyber Crimes Wing to trace illicit financial flows linked to betting apps. Authorities are invoking charges of cheating to prosecute influencers and app operators. Moreover, forensic audits and blockchain analytics are being used to trace transactions through shell companies. Banks, under the Prevention of Money Laundering Act (PMLA), must report suspicious activity, while the state actively monitors social media for illegal betting promotions. In response, authorities have taken proactive enforcement measures, including removing advertisements and launching a citizen complaint system via Twitter and control rooms.
Manmeet Kaur, Partner at Karanjawala & Co., stated, “The Telangana Gaming (Amendment) Act, 2017, has implemented strict prohibitions on online gaming, particularly those with serious financial consequences, with penalties including fines and imprisonment. Additionally, the Telangana government has partnered with tech firms like Google to enhance digital literacy and protect citizens from online risks.”
Regulatory Challenges in Social Media Policing
Regulating betting promotions on social media presents a significant challenge. Sonam Chandwani, Managing Partner at KS Legal & Associates, explains, “Regulatory bodies struggle to enforce disclosure norms due to the nature of social media. Algorithms prioritize engagement, making oversight reactive rather than proactive. Influencers exploit loopholes by using vague hashtags or hiding disclaimers, and platforms lack uniform scrutiny, often responding only to media pressure.”
Platforms claim intermediary status under Section 79 of the IT Act, arguing they are not liable for hosted content. However, their algorithmic amplification of such promotions blurs the line between passive hosting and active facilitation. The ASCI Code for Self-Regulation requires transparency in paid promotions, and failure to disclose such content breaches these guidelines. Additionally, Section 69A of the IT Act empowers the government to block misleading betting promotions under public order concerns.
Section 69A of the IT Act allows the government to block access to betting websites and apps, while the Prevention of Money Laundering Act (PMLA) enables financial crackdowns on payments linked to illegal betting. The Foreign Exchange Management Act (FEMA) restricts remittances for gambling, helping regulators block transactions to offshore entities. Additionally, platforms hosting such ads risk losing safe harbor protections under Section 79 of the IT Act if they fail to remove illegal content after government notice, according to Gangesh Varma, Principal Associate at Saraf and Partners.
The challenge is further complicated by offshore betting apps targeting Indian users from lax jurisdictions. If financial transactions related to betting pass through Indian banking channels, the Prevention of Money Laundering Act (PMLA) can be invoked. While the PMLA enables financial crackdowns on payments linked to illegal betting, the Foreign Exchange Management Act (FEMA) restricts remittances for gambling, helping regulators block transactions to offshore entities.
The government has previously forced Apple and Google to delist betting apps and could extend similar measures to social media platforms hosting such promotions. However, enforcement against major tech companies is often hindered by legal loopholes, and penalties are rarely strong enough to serve as effective deterrents.
Ignorance of Law Is No Excuse
Influencers promoting betting apps face serious legal and financial repercussions. Beyond general gambling prohibitions, Section 79(3)(b) of the IT Act removes safe harbor protections if a platform knowingly allows unlawful content. Under the Consumer Protection Act (CCPA), influencers can be fined up to ₹50 lakh for misleading endorsements, and they may also face criminal charges for cheating and fraud under state gambling laws.
Kinjal Champaneria from Solomon & Co. stresses, “Ignorance of the law is no excuse. Before signing contracts to promote online betting platforms, influencers must verify licensing, legal compliance, and user protection measures. Failure to do so can result in fines, lawsuits, and reputational damage.”
To mitigate risk, influencers can include indemnification clauses in contracts, shielding them from financial liability in legal disputes. However, platforms hosting such content remain at risk if they fail to monitor, knowingly distribute illegal ads, or violate advertising regulations.
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