Prominent actors and digital personalities have allegedly accepted large sums of money to promote platforms, which are now being accused of pushing families into financial ruin, even triggering suicides
The Enforcement Directorate’s action against 29 film celebrities and influencers for promoting banned betting apps has once again highlighted lax ethics around celebrity endorsements in India. According to an estimate, 34 crore Indians place bets on cricket matches, cumulatively betting over $200 million on each game.
Prominent actors and digital personalities have allegedly accepted large sums of money to promote platforms, which are now being accused of pushing families into financial ruin, even triggering suicides. Though the ED’s charge against them is limited to money laundering, their crime is far graver and reflects how low the bar has fallen for celebrity responsibility.
Actors and influencers command enormous trust among their fans, and their word becomes currency for them. When they use this trust to promote addictive betting apps or fake projects, the damage multiplies.
The celebrities must, therefore, perform due diligence before endorsing any project. However, in pursuit of financial gain, they allowed the lines between commercial endorsement and public exploitation to blur, which ultimately resulted in their being subjected to the ED’s scrutiny.
Another side to the promotion of illegal betting apps is the unclear legal landscape. The law distinguishes between betting based on chance and that which requires skill. However, the line between chance-based betting and skill-based betting is increasingly hard to maintain.
Using this loophole, several betting app makers market betting as a skill-based game and enlist endorsements by celebrities to promote it to the wider public. For example, cricket betting apps could justify their activity as the punter assesses the situation based on past performances, statistics and form.
Instead of dealing with this issue through agencies like ED, the government must clarify the legal definition of betting, demarcating clear boundaries between skill and chance. It should make it clear to celebrities that influence must come with accountability. If their endorsement causes loss to the public, they must pay up.
