India’s Online Gaming Industry (OGI) is a powerhouse of economic growth, fueled by its ever-expanding user base and innovative offerings. A key driver of this growth is advertising, which has played a pivotal role in creating awareness and attracting players to gaming platforms. However, as the industry scales new heights, its advertising practices have come under scrutiny. Misleading advertisements, particularly, have sparked concerns about the industry's responsibility toward its users and ethical obligations.
Illegal betting and gambling advertisements have surged on digital platforms, often appearing in innovative formats. In its recent half-yearly complaints report for 2024-25, the Advertising Standards Council of India (ASCI) revealed a significant spike in misleading and illegal advertisements, particularly within the offshore betting sectors. It flagged 890 such ads to the Ministry of Information and Broadcasting (MIB) for action. Frequently promoted through social media platforms, these platforms leveraged fan pages, influencers, and digital tickers to promote illegal betting apps, leaving users confused and vulnerable to exploitation.
For an industry integral to India’s vision of a Viksit Bharat, such practices risk damaging its reputation and hindering sustainable growth. Embracing responsible advertising is thus not only a legal obligation but also a strategic priority for the gaming sector. This is evident from ASCI's 2024 report, which notably excludes the online gaming industry from its list of advertising regulation violators.
Legitimate gaming companies must take proactive steps to ensure their advertisements align with ethical and regulatory standards. One effective approach is the inclusion of disclaimers in advertisements. For instance, the financial industry, including mutual funds, consistently warns consumers about the risks involved in their products. Gaming companies can adopt a similar approach, running clear disclaimers about the financial risks associated with their games. This transparency will not only educate users but also foster trust in the platforms.
Another critical step is the whitelisting of legitimate gaming companies. By establishing a robust framework that identifies and certifies compliant operators, the industry can differentiate itself from illegal offshore platforms. This would help reduce the proliferation of misleading advertisements while enhancing the credibility of India’s gaming sector. Whitelisting would also make it easier for users to identify trustworthy platforms, further boosting consumer confidence.
The government and industry stakeholders must also collaborate to create guidelines that govern advertising practices for the sector. These guidelines should emphasize truthfulness, transparency, and consumer protection. Advertisements should focus on promoting responsible gaming habits and discouraging risky behavior.
In a rapidly evolving industry, balancing economic growth with ethical practices is paramount. Advertisements are a powerful tool, but their misuse can have far-reaching consequences, including regulatory crackdowns, loss of user trust, and reputational damage. By prioritizing responsible advertising, India’s gaming industry can position itself as a leader in ethical growth and innovation.
As the gaming sector continues to thrive, it must hold itself accountable to the highest standards of responsibility. Through transparent advertising, user education, and collaborative regulation, the industry can achieve a balance that safeguards user interests while sustaining its economic potential. A responsible gaming industry will not only contribute to India’s economic ambitions but also set a benchmark for ethical practices globally.
