What are the legal challenges for gambling affiliate marketers in India?

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Marcoswiliam
Occasional Contributor

What are the legal challenges for gambling affiliate marketers in India?

Gambling affiliate marketing in India faces unique legal challenges due to the country's complex and evolving regulatory framework. While the gambling industry offers significant opportunities, navigating legal restrictions is critical for gambling affiliate marketers  to operate responsibly and effectively.

 
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Ambiguous Gambling Laws

India's gambling laws are governed primarily by the Public Gambling Act of 1867, which prohibits most forms of gambling but leaves states the authority to regulate the industry. This creates ambiguity for affiliate marketers, as rules vary significantly across states. For example, states like Goa, Sikkim, and Nagaland allow certain types of gambling, while others, such as Gujarat and Tamil Nadu, impose strict bans.

Ban on Online Gambling in Certain States

Several states have explicitly banned online gambling, including its promotion. Affiliates targeting these regions risk legal penalties if they promote platforms offering real-money games, such as poker, rummy, or sports betting.

Advertising Restrictions

Advertising gambling services is heavily restricted in India. Affiliates must carefully craft their campaigns to avoid direct promotion of gambling, often opting for soft marketing techniques like content marketing, guides, or indirect advertising. Violations can result in legal action or platform bans.

Payment and Tax Compliance

Earning revenue from gambling affiliates involves cross-border payments, often through international platforms. Affiliates must ensure compliance with India’s Foreign Exchange Management Act (FEMA) and taxation laws, including declaring income and paying Goods and Services Tax (GST).

Moral and Ethical Concerns

Gambling remains a socially sensitive topic in India. Affiliates may face societal backlash or reputational risks, especially when promoting platforms to vulnerable audiences.

Conclusion

To succeed, gambling affiliate marketers in India must stay updated on legal changes, partner with compliant platforms, and adopt ethical marketing practices to mitigate risks.