Skill vs. Chance: A caution for Professionals in Advg, PR and CorpCom
For professionals in Advertising, PR and Corporate Communications, understanding the legal and ethical implications of promoting betting and speculative financial activities is crucial. The endorsement of betting platforms can lead to regulatory scrutiny, reputational risks and severe penalties under Indian law. A responsible and compliant approach is essential to safeguard both public interest and corporate credibility.
It is essential to distinguish between skill games, betting games, lottery, share marketing, and trading. The key takeaway is that betting is not skilling.
In India, games of chance fall under gambling laws and are generally prohibited, while games of skill are exempted from such restrictions. Betting Games include sports betting like cricket, football and casino-style games that rely on pure chance. Skill Games include fantasy sports, rummy and poker, which claim to require skill rather than luck. Lottery is a state-regulated gambling format where winners are drawn randomly and Share Marketing & Trading involves investing in stocks, derivatives and cryptocurrencies. While financially risky, these are generally regulated activities.
Laws that govern gambling, betting, and speculative financial activities in India are Bharatiya Nyaya Samhita, 2024 (formerly Indian Penal Code, 1860); Public Gambling Act, 1867; Information Technology Act, 2000; Consumer Protection Act, 2019; Foreign Exchange Management Act, 1999 and Goods and Services Tax Act, 2017. These activities attract a 28% GST, generating an annual revenue of approximately ₹7,000 crores for the Indian government.
Countries like UAE, Qatar, North Korea, China and Brunei have imposed strict bans on gambling and betting. Within India, TN, AP, Telangana, Karnataka and Odisha have banned betting and gambling. However, states like Sikkim, Maharashtra, Gujarat, and Uttar Pradesh have their own regulatory frameworks.
Concerns about Advertising and Promotion are that certain betting and gaming apps use aggressive marketing tactics, including celebrity endorsements, cashback offers and misleading promotions to lure users.
Some well-known betting platforms are Dream11, Betway, 1xBet, Parimatch and Fairplay. One thing to be kept in mind is that if money is asked in the process it is certainly not a skill game but a betting game.
Therefore, it is advisable for organizations, brands and public personalities to avoid sponsoring or endorsing betting platforms or speculative financial schemes. Ethical advertising ensures compliance with Indian laws while maintaining public trust and brand reputation.
- Y Babji,
PR Educator & Legal Practitioner
