The thin red line

The thin line between the legal and illegal when it comes to celebrities promoting betting apps has raised eyebrows even as the Enforcement Directorate conducts its investigation into the Mahadev Book betting appThe central agencyrsquos probe made a splash earlier this month when Bollywood heavyweights like Ranbir Kapoor Shraddha Kapoor Kapil Sharma Hina Khan and Huma Qureshi were summoned for inquiriesFurther the ED has 60 apps linked to Mahadev Book under its scanner with names like Sanjay Dutt Nawazuddin Siddiqui Sonakshi Sinha Tamannaah Bhatia Urvashi Rautela Farah Khan Suniel Shetty Neil Nitin Mukesh Sunny Leone Neha Sharma Kajal Agarwal Badshah Jacquline Fernandes Kriti Kharbanda Adah Sharma Raftaar and Krushna Abhishek promoting themEven Shah Rukh Khan found himself mired in controversy after a Non Government Organisation called Untouched India Foundation held a protest outside his house The NGO was voicing its displeasure at Khan endorsing A23 an online rummy portalFrom left to right Krishnchandra Adal Abha Singh Ali Kaashif Khan Deshmukh Sujay KantawalaldquoSuch games are not legally permitted in India and yet these platforms exploit the grey areas within the Public Gambling Act of 1867 Now global players entering the market through partnerships with local companies or by acquiring Indian game studios that create culturally tailored games Indian celebrities are promoting online gaming through enticing but misleading advertisements Some even endorse surrogate websites for illicit offshore gaming organizations which are prohibited by the Indian governmentrdquo says Krishnchandra Adal who heads Untouched India Adal is currently drafting a Public Interest Litigation PIL to be filed in the Supreme Court in this regardldquoBetting on games primarily determined by skill was legalised by the Supreme Court of India in a 1967 decision which was subsequently upheld in 1996 However wagering on games where chance is the dominant factor remains prohibited In 1968 rummy was legalised with the argument that it predominantly involves skill despite the presence of some element of chance Online gaming companies are citing these precedents to promote the legality of skillbased online gamesrdquo Adal saysHe adds that even when regulations to govern the internet were absent such promotion and endorsement by celebrities was irresponsible due to the adverse socioeconomic consequences of online gamblingDespite the Information Technology Intermediary Guidelines and Digital Media Ethics Code Amendment Rules of 2023 being in effect games offered by gaming companies have not yet been classified as permissibleDuring the research for his PIL Adal came across a study by Dheeraj Sharma Director Professor at Indian Institute of Management IIM Rohtak who through a survey found that young people are more likely to turn to gambling if a famous person supports it The more attractive or well known the celebrity the higher the chances of this happening At the same time if the same celebrity issues the statutory warning about the dangers of gambling addiction the chances of someone taking up gambling drop to roughly 50 per centAdvocate Ali Kaashif Khan Deshmukh says that the Consumer Protection Act 2019 has brought celebrities under the legal microscope for their role in promoting potentially misleading products and services ldquoWhile specific guidelines for online gaming endorsers are still absent the message is clear celebrities can no longer evade accountabilityrdquo he saysSenior lawyer Abha Singh cites the example of the Amrapali housing society in Noida which was endorsed by former Indian cricket team captain Mahendra Singh Dhoni Numerous people invested in it and later lost their money ldquoIn a situation where the credibility of builders is questionable people were enticed solely because Dhoni was endorsing the project and as a result they were deceived There must be a concept of moral accountability because these individuals are public figuresrdquo says SinghShe adds that celebrities are often paid substantial sums for endorsements and sometimes these apps offer big money despite their illegalityldquoIn such cases the police do have the option to name them as accusedrdquo Singh says ldquoWhat the Enforcement Directorate ED is currently investigating is a part of money laundering to establish how various channels are used to siphon the proceeds of illegal activitiesrdquo she further elaboratesThe concerns are not just based on hypothetical results The widespread impact of online gambling and betting apps in India has actually led to multiple instances of individuals ending their own lives after incurring substantial lossesIn June a 55yearold man died by suicide in Panvel after losing 5 lakh in the game ldquoJunglee Rummyrdquo Police investigations revealed that the man driven by addiction resorted to taking loans in an attempt to recover his losses only to face further setbacks Similarly a 50yearold businessman from Pune took the extreme step after sustaining massive losses in online casino games The police have registered an abetment to suicide case in connection with the incidentSimilar instances have been reported from other parts of Maharashtra as well as Gujarat Kerala Chennai and KarnatakaldquoThe consumer is most often treated as a Guinea pig who will be used and also manipulated by huge corporations to sell their goods or services Itrsquos smart planning mastered over decades by skilled management experts The consumer is to be captivated by visual appeal of lovely faces coupled with terrific music and the message to buy the product is drilled into the psycherdquo says senior lawyer Sujay Kantawala Dream11 a popular fantasy cricket game has also faced a spate of PILs in the past but the Supreme Court has ruled the it is game of skill and not chanceToday Dream11rsquos website prominently states ldquoIn August 2021 the Supreme Court of India affirmed that fantasy sports involve a significant degree of skill and judgment rendering them legal The success of fantasy games hinges on a userrsquos knowledge attentiveness and strategic execution Consequently achievements in fantasy cricket are not subject to chance As a result Dream11 qualifies as a legitimate business in India and falls outside the scope of the Public Gambling Act 1867 According to the Federation of Indian Fantasy Sports FIFS the nationrsquos inaugural selfregulatory body for the Sports Gaming industry games of skill are exempted from the purview of most gambling regulations and are thus considered legal to participate inrdquoThe Advertising Standards Council of India ASCI has also issued various guidelines for advertising featuring celebrities However these guidelines are voluntaryLegal experts say that online games typically fall under two categories games of chance and games of skill In a significant 1996 ruling the Supreme Court defined a game of chance as one primarily determined by luck or entirely reliant on random outcomes Activities like rolling dice spinning wheels and card shuffling fall into this category where the final result remains uncertain and unpredictable until the dice settles the wheel comes to a stop or the dealer finishes distributing the cards Conversely a game of skill while not entirely devoid of chance primarily hinges on the playerrsquos superior knowledge training attention experience and dexterity Sports such as golf chess and even games like Rummy are often classified as games of skillThe Public Gambling Act deems any form of gambling for money illegal However it makes an exception for games of skill which are considered lawful Section 12 of The Public Gambling Act 1867 sayrsquos that Act not to apply to certain gamesNothing in the foregoing provisions of this Act contained shall be held to apply to any game of mere skill wherever playedldquoIn the realm of online betting and gambling the legal landscape in India is as intriguing as a game of chance itself Imagine this no federal bans only a handful of states displaying their legal stances and a constant debate between skillbased and luckbased gamesrdquo says Deshmukh Certain states such as Nagaland Sikkim and Kerala have embraced regulated online gaming apps where skill takes precedence They even mandate licenses for these virtual gaming platforms However states like Telangana Rajasthan Uttar Pradesh Andhra Pradesh and Tamil Nadu remain steadfast in prohibiting such activities within their jurisdictionsThe EDrsquos ongoing investigation into Mahadev Book indicates that Saurabh Chandrakar the alleged mastermind behind the app along with his associates Ravi Utpal Kapil Chellani and Satish Kumar currently residing in Dubai are known to operate nearly 60 illegal offshore gambling websites Multiple cases related to fraud and illegal activities have been filed against him The apps offer a range of betting activities centered around games like cricket football tennis horse racing greyhound racing kabaddi a host of card games and in some cases even political events in IndialdquoMany of these apps operate from outside India and these individuals are wellversed in Indian law They utilise the Internet often with the support of celebrity endorsements to attract Indian customers and generate profits We must consider amending our laws to align with the current situation allowing law enforcement to take effective actionrdquo a senior law enforcement official tells midday