PKL faces allegations of surrogate advertising for illegal betting platforms

According to media reports, the Pro Kabaddi League (PKL) is facing allegations of promoting illegal betting and gambling platforms, in clear violation of the Ministry of Information and Broadcasting's (MIB) advisory against surrogate advertising. Real Money Gaming (RMG) operators have raised concerns with the MIB, urging immediate action.

The RMG operators have highlighted that offshore betting platforms such as Melbet, Dafabet, Vegas11, Fun88, and 1xBet are engaging in surrogate advertising by using names that closely resemble their original brands. For instance, Melbat, Dafanews, Vegas11 Sports News, Fun88 News, 1xbat, and Batery.AI are alleged to be surrogate names.

Additionally, the RMG operators claim that Dafa News, an extension of Dafabet based in the Philippines, and Parimatch News, a surrogate for Parimatch from Cyprus, are listed as official partners of PKL. Reports indicate that these platforms are also sponsoring Kabaddi teams, such as Haryana Steelers and Bengal Warriors.

The PKL, which saw its viewership surpass 200 million during its 90th match in 2024, is set to kick off its Season 11 on October 18, 2024. Despite the MIB's advisory issued on October 3, 2022, which bans advertisements of online gambling sites and surrogate ads due to the risks they pose, the league's alleged involvement with these platforms raises concerns about compliance with government guidelines.

Industry leaders from the RMG sector have criticized the practice, noting that offshore companies evade tax obligations and use substantial budgets to promote their platforms in India. This practice reportedly undermines legitimate RMG companies, which face significant tax burdens and struggle to compete for high-profile sponsorships.

The RMG sector also points out that these surrogate advertisements violate several regulations, including the Consumer Protection Act, 2019, and guidelines on misleading advertisements. The ongoing controversy highlights the need for stringent enforcement of government advisories and may prompt the newly elected Chairman of the Advertising Standards Council of India (ASCI) to address these issues with the government.

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