The Ministry of Information and Broadcasting (MIB) recently asked private TV channels, digital news distributors, and OTT platforms to abstain from showing ads for online pay-to-earn and surrogate ads. In a letter to a major tech platform, the ministry said such sites pose significant financial and socio-economic risks for consumers, especially youth and children.

While MIB actions have significantly reduced this advertising on TV channels and OTTs, these anti-national platforms continue to advertise aggressively on all major social media platforms, Big Tech online advertising platforms, and using major sports and entertainment personalities.

Commenting on this, Mr. Roland Landers, CEO of the All India Gaming Federation, said, “AIGF has been at the forefront of creating awareness against the menace of illegal offshore pay-to-earn websites.” In our opinion, one of the most problematic aspects of these offshore websites is how they promote and advertise their illegal products. They had been pushing incessant advertisements during telecasts of sporting events on TV channels and OTT platforms. Additionally, they have been using OOH, print, and digital media along with sponsorships of sports teams across Indian leagues to further penetrate the psyche of the Indian consumer. “We are even seeing prominent influencers with sports and entertainment backgrounds endorsing these products.”

As per reports, enormous amounts are being spent by illegal offshore pay-to-earn websites on all types of advertising. This figure is expected to be at least Rs. 3,500 crores per year in advertising. On the other side, if we incorporate sponsorships and influencer marketing, this number might jump to almost Rs. 5,000 crores. These offshore online pay-to-earn platforms publish advertising across all types of physical and digital media, including news websites, broadcast television, and streaming services.

“AIGF had relentlessly advocated against such advertisements and submitted multiple representations to the government in this regard. And to the credit of the government, certain prompt and robust steps have been taken by the Ministry of Information and Broadcasting and the Ministry of Consumer Affairs. The two ministries have come out with strict advisories against direct and surrogate advertising by offshore and illegal pay-to-earn websites. This has resulted in a significant reduction in offshore pay-to-earn ads on OTT platforms and TV channels. He further added:

AIGF has forever been thankful to the government for taking such an unequivocal step against illegal offshore pay-to-earn websites, which have been advertising in India under the garb of surrogate news and sports websites. AIGF has been highlighting this menace since 2018 and has been constantly taking up these issues with various central ministries and also providing evidence of uninterrupted advertising on major Indian OTT and satellite channels.

Mr. Roland also added, “However, there are multiple avenues that still need the government’s attention where these offshore operators are pumping big investments and advertising.” The sponsorship of sports teams across various Indian leagues and these leagues themselves and the use of influencers by illegal offshore operators is the next big concern. We need the government, sports, and media influencers, and sporting federations to join hands to curb the access of such unscrupulous actors to unsuspecting Indian consumers. AIGF will continue to raise the issue in all relevant forums and will create awareness among the public. “We are hopeful that all stakeholders, including the government, will soon take further steps to curb the menace of offshore pay-to-earn websites.”

Credit: TechnoSports