Despite the several celebrity endorsement guidelines and bringing the online gaming industry into a higher goods and services tax slab, celebrities continue fast and loose. Popular Bollywood face Nora Fatehi is the latest example, as she combines the promotion of her new music video with endorsing a betting platform.
Fatehi recently shared an Instagram story featuring a link labelled ‘Sports Related News’. However, upon clicking the link, users are directed to a platform called Sportsexch, which describes itself as a ‘sports betting exchange community’ on its website.
Additionally, Fatehi has also posted content endorsing this brand, offering a shout-out in appreciation of Sportsexch’s support for her new music video.
This not just raises questions about the extent to which celebrities are adhering to the rules surrounding endorsements but also on the potential conflicts of interest that can arise from such dual promotions.
This modus operandi is a commonly used one among betting platforms, especially offshore ones targeting the Indian market. These entities often pose as content platforms, mostly sports-related content. The majority of their advertisements include a QR code that, when scanned, directs users to a WhatsApp business account. This account then facilitates access to websites enabling users to place bets.
Sportsexch follows a similar approach, requiring users to create an account via WhatsApp. Funds are then deposited through account details generated by the system or provided by its official support team through chat interactions.
The servers for Sportsexch, as per SiteIndices, are located in Washington, DC.
In the past, Storyboard18 has written extensively on offshore sports betting platforms and their rampant marketing initiatives in the country. Chandrima Mitra, partner, DSK Legal, had then explained that considering betting is prohibited in many states in India, advertising of betting is also prohibited. As a workaround, such offshore betting companies introduce either surrogate businesses or brand extensions (such as gaming platforms, news portals, etc.) in order to promote their platforms.
Most of India is governed by the regulations outlined in the Public Gambling Act of 1867 and the Information Technology Act of 2000. These legislative frameworks prohibit sports betting at the central level; however, individual states possess the authority to establish their own regulations and the Indian legal system lacks a specific law that outright bans online gambling. Exploiting this legal loophole, betting companies are enticing Indian users into participating in a wide range of betting activities, especially through sports.
Sportsexch, for instance, at the moment is going all out on betting around the India-West Indies bilateral cricket series.