Introduction

Over the past few years, India has witnessed an explosion of influencer-driven promotions in three of the most legally sensitive sectors of the digital economy: cryptocurrency, fantasy sports, and online gambling. From Instagram reels promising overnight crypto wealth to YouTube integrations for fantasy sports platforms and celebrity endorsements of offshore betting apps, influencers have become the primary marketing channel for industries that operate in a complex and often ambiguous legal environment.

The stakes are enormous. India’s crypto user base has grown to over 107 million active participants. The fantasy sports industry, before the recent legislative intervention, was valued at approximately ₹45,000 crore with over 180 million active users. And despite being illegal in most of India, the online gambling market reached an estimated $2.85 billion in 2023, driven significantly by influencer promotions. These numbers underscore the scale of the problem and the urgency of the regulatory response.

Yet, the legal framework governing influencer advertising in these sectors remains fragmented, reactive, and, in many cases, inadequate. This article examines the regulatory grey zone in which influencers operate when promoting crypto, fantasy sports, and gambling products, the emerging legal consequences, and what all stakeholders need to understand to navigate this rapidly evolving landscape.

The Crypto Advertising Conundrum

Cryptocurrency occupies a peculiar legal position in India. It is neither banned nor fully regulated. Following the Supreme Court’s landmark 2020 decision striking down the Reserve Bank of India’s 2018 banking restriction on crypto exchanges, trading in virtual digital assets (VDAs) was effectively restored. The government chose not to ban crypto outright but instead imposed a stringent tax regime through the Finance Act, 2022, levying a flat 30% tax on gains from VDA transfers with no deductions, no loss set-off, and an additional 1% TDS on all transactions.

Despite this, India still lacks a comprehensive cryptocurrency law. The RBI has consistently expressed concerns about the risks posed by private cryptocurrencies to monetary and fiscal stability. SEBI has proposed a multi-regulator framework to oversee VDA activities, and the Ministry of Finance has been in discussions with both regulators to establish a formal regulatory architecture. As of early 2026, however, cryptocurrencies continue to exist in what can best be described as a regulated yet undefined space.

It is in this vacuum that influencer advertising of crypto products has flourished. The Advertising Standards Council of India (ASCI) stepped in with specific guidelines for the advertising and promotion of virtual digital assets, effective from April 1, 2022. These guidelines mandate that all crypto related advertisements, whether in print, video, audio, or social media, must carry a prominent disclaimer: “Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions.”

The ASCI guidelines further require that crypto advertisers must not compare VDAs with regulated financial products, must not use words like “currency,” “securities,” “custodian,” or “depositories” that could mislead consumers, and must not feature minors in any crypto advertisement. Asset performance information must not be presented in a biased manner, and returns can only be mentioned for periods of one year and above.

However, compliance has been alarmingly poor. Following the crypto market boom triggered by global developments, crypto companies increased their advertising budgets significantly and actively collaborated with social media influencers, many of whom blatantly disregarded the mandatory disclaimer and due diligence requirements. Industry insiders have noted that brands and agencies often discourage influencers from adding disclaimers because they reduce engagement and draw regulatory scrutiny.

Fantasy Sports: From Skill to Prohibition

The legal trajectory of fantasy sports in India is perhaps the most dramatic illustration of how quickly the regulatory ground can shift beneath influencers’ feet. For years, fantasy sports platforms like Dream11, My11Circle, and Mobile Premier League (MPL) operated on the basis of a well-established legal distinction between games of skill and games of chance. The Supreme Court in State of Bombay v. RMD Chamarbaugwala (1957) had laid down the foundational principle that games involving a preponderance of skill are not gambling under Indian law.

This distinction allowed fantasy sports to flourish as a massive industry. Platforms invested heavily in celebrity endorsements, IPL sponsorships, and influencer marketing campaigns. Cricketers, Bollywood actors, and social media creators became the face of fantasy gaming, urging millions of users to invest real money in virtual teams with promises of substantial winnings.

Then came the Promotion and Regulation of Online Gaming Act, 2025. Passed by Parliament in August 2025 and receiving Presidential assent on August 22, 2025, this legislation fundamentally redefined the landscape. The Act defines “online money games” broadly as digital games in which users stake money, pay entry fees, or expect financial rewards. This definition effectively covers fantasy sports, online rummy, poker, and other real money contests. The Act prohibits not only the operation of such platforms but also the advertisement and promotion of online money games. Violations can attract imprisonment of up to five years for repeat offenders and fines up to ₹2 crore. Crucially, the Act also bars celebrities and influencers from promoting such platforms.

The impact was immediate and devastating. Dream11 suspended its paid contests. MPL halted all money-based games and announced plans to cut approximately 60% of its Indian workforce. Flutter Entertainment shut down Junglee Rummy. The industry’s estimated annual tax contribution of close to ₹20,000 crore to the government evaporated virtually overnight.

For influencers, the implications are severe. Those who promoted fantasy sports platforms before the Act may face retrospective scrutiny, while any ongoing promotion is now explicitly illegal. The Act creates a clear and unambiguous prohibition, removing any grey area that previously existed around the promotion of real money gaming platforms.

Online Gambling and Betting: The Persistently Illegal Frontier

Unlike crypto and fantasy sports, where some degree of legal ambiguity existed, online gambling and betting have been consistently illegal across most of India. Gambling is a state subject under the Constitution of India, and the vast majority of states prohibit it under their respective gaming and gambling legislation. States like Telangana and Andhra Pradesh have amended their gaming laws to explicitly ban all forms of online gambling, including real money card games. Only a handful of states, notably Goa and Sikkim, permit licensed gambling in limited formats.

Despite this clear legal position, offshore gambling platforms have aggressively targeted Indian consumers, and influencers have been their primary marketing tool. ASCI’s Half-Yearly Complaints Report for April to September 2025 revealed startling numbers: the Council flagged 4,575 illegal betting advertisements, with 97% of the violations occurring in the digital space. Out of 1,173 influencer advertisements examined during the period, 683 were found to be promoting betting platforms. More than 75% of all influencer related violations were linked to betting and personal care promotions.

The methods used to disguise these promotions are increasingly sophisticated. Many influencers present betting promotions as game reviews, match analysis, or entertainment partnerships. Mandatory disclosures are routinely missing. ASCI found that almost 90% of influencers corrected their posts only after being contacted by the Council, suggesting that violations are deliberate rather than inadvertent.

The legal consequences are now materializing. Criminal cases have been registered against celebrities and social media influencers for promoting offshore betting apps. In one notable case reported in 2025, an FIR was filed against six well known actors and 19 social media influencers under relevant sections of the Bharatiya Nyaya Sanhita, 2023, the Gaming Act, and the Information Technology Act for actively promoting illegal betting platforms through social media and pop-up advertisements.

The Ministry of Information and Broadcasting has issued multiple advisories in 2022, 2023, and 2024 to media platforms, advertisers, and influencers, explicitly warning against publishing or promoting online betting advertisements. Between 2022 and June 2025, 1,524 betting and gambling websites and mobile apps were blocked by the authorities. Yet, the promotions continue, driven by the lure of lucrative payments from offshore operators who face little accountability within India’s jurisdiction.

The Regulatory Framework: A Patchwork of Provisions

The regulatory framework governing influencer advertising in these sectors is drawn from multiple sources, none of which, until recently, addressed the issue comprehensively.

ASCI Guidelines

The ASCI’s Guidelines for Influencer Advertising in Digital Media require all promotional content to carry clear disclosure labels. The specific guidelines for VDA advertising mandate disclaimers, prohibit misleading comparisons, and require substantiation of claims. However, ASCI is a self-regulatory body and its guidelines are not legally binding on non-members, limiting the enforceability of its standards.

Consumer Protection Framework

The Consumer Protection Act, 2019, and the Consumer Protection (Prevention of Misleading Advertisements and Necessary Due Diligence for Endorsement of Advertisements) Guidelines, 2022, impose obligations on endorsers to conduct due diligence before promoting products. Endorsers can be held liable for misleading advertisements, and the Central Consumer Protection Authority (CCPA) has the power to impose penalties, ban endorsements, and initiate prosecution. The guidelines also specifically prohibit surrogate advertisements, particularly in sectors where direct advertising is illegal, such as gambling and liquor.

Information Technology Regulations

The Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021, provide a framework for content regulation on digital platforms. The Ministry of Information and Broadcasting has relied on these rules to issue advisories against gambling advertisements. Platforms that host such content can face regulatory action for non-compliance.

The Promotion and Regulation of Online Gaming Act, 2025

This Act represents the most significant legislative intervention in this space. By explicitly prohibiting the advertisement and promotion of online money games and by imposing criminal penalties for violations, the Act fills a critical gap in the regulatory framework. It establishes the National Online Gaming Commission to investigate and license gaming entities, and it mandates that licensed platforms include responsible gaming warnings and grievance redressal mechanisms.

Implications for Influencers

The convergence of these regulatory developments creates a fundamentally altered risk landscape for influencers promoting crypto, fantasy sports, and gambling products. The key takeaways for influencers are:

• Criminal liability is real. The Promotion and Regulation of Online Gaming Act, 2025, imposes imprisonment of up to five years and fines up to ₹2 crore for promoting banned online money games. FIRs have already been filed against influencers promoting offshore betting platforms. This is no longer a matter of self-regulatory guidelines or voluntary compliance.
• Ignorance is no defence. Courts and regulators expect influencers to conduct due diligence before promoting any product. The CCPA guidelines, the ASCI guidelines, and the Supreme Court’s observations in Common Cause v. Union of India (2018) all emphasize that endorsers cannot rely solely on brand-provided scripts and must independently verify the legitimacy and accuracy of the claims they communicate.
• Disclosure requirements are non-negotiable. Whether it is crypto, gaming, or any other sector, influencers must comply with ASCI’s disclosure norms. The mandatory crypto disclaimer must be prominently displayed. Promotional relationships must be clearly identified. Failure to do so exposes influencers to both regulatory action and civil liability.
• Retrospective scrutiny is possible. Content that remains online can give rise to fresh claims and regulatory action over time. Influencers who promoted fantasy sports or gambling platforms in the past should review their existing content and consider removing promotional material that may now be illegal under the new legislation.

Implications for Brands and Intermediaries

The responsibility does not rest solely on influencers. Brands, marketing agencies, and talent managers all bear significant liability.

Brands that commission influencer promotions for crypto, fantasy sports, or gambling products must ensure regulatory compliance at every stage. Under the CCPA guidelines, both the advertiser and the endorser are jointly responsible for ensuring that the content is truthful, substantiated, and compliant with applicable laws. Brands that outsource their marketing to agencies must verify that these agencies have robust compliance processes in place.

Marketing agencies that facilitate influencer campaigns in these sectors must recognize that they are not mere intermediaries. They have an obligation to ensure that the campaigns they run are legally compliant, that influencers are properly briefed on disclosure requirements, and that content is reviewed for potentially problematic claims. Agencies that knowingly facilitate illegal gambling promotions or non-compliant crypto advertising risk both regulatory action and civil liability.

Talent managers and influencer agencies must exercise heightened caution when evaluating brand deals in these sectors. The fiduciary duty owed to their clients requires them to assess the legal risks associated with each partnership and to advise influencers against engagements that could expose them to criminal or regulatory consequences.

The Way Forward

The regulatory landscape for influencer advertising in crypto, fantasy sports, and gambling is evolving rapidly. The passage of the Promotion and Regulation of Online Gaming Act, 2025, signals that the government is prepared to take decisive legislative action when it perceives a threat to consumer welfare. The ongoing discussions between the Ministry of Finance, SEBI, and the RBI around a comprehensive crypto regulatory framework suggest that similar intervention in the VDA space is only a matter of time.

For influencers, the message is clear: the era of treating these promotions as easy money with no consequences is over. Influencers must invest in understanding the legal landscape, seek professional legal advice before accepting brand deals in regulated or restricted sectors, and build compliance into their standard operating procedures. Higher visibility brings higher accountability, and in the current environment, a single non-compliant promotion can result in criminal prosecution, financial penalties, and irreparable reputational damage.

For all stakeholders, the overarching principle remains the same: transparency, due diligence, and legal compliance are not optional. They are the foundation of sustainable and responsible influencer marketing. Those who recognize this reality and adapt their practices accordingly will be the ones who thrive in India’s increasingly regulated digital ecosystem. Those who choose to ignore it do so at their own peril.

Conclusion

The intersection of influencer marketing with crypto, fantasy sports, and gambling represents one of the most complex and consequential regulatory challenges in India’s digital economy. What was once a grey zone is rapidly becoming a well-defined legal landscape with clear prohibitions, mandatory compliance requirements, and real penalties for violations.

Influencers, brands, and intermediaries must recognize that promoting products in these sectors carries legal risks that go far beyond the loss of a brand deal or a slap on the wrist from a self-regulatory body. Criminal prosecution, substantial financial penalties, and lasting reputational harm are now very real possibilities. The regulatory trajectory is unmistakable: India is moving towards greater oversight, stricter enforcement, and higher accountability for all participants in the influencer marketing ecosystem.

In this environment, the most valuable asset for any influencer is not their follower count or engagement rate. It is their credibility and legal standing. And the best way to protect both is to approach every brand partnership with the diligence, transparency, and professionalism that the law demands. The stakes have never been higher, and the time to act responsibly is now.

Gaurav Arora, Advocate | Partner, AWM Legal