New gaming rules raise compliance heat for influencers, agencies and ad-tech intermediaries?

India’s newly notified online gaming rules may be framed as a “light-touch” regime for the sector, but legal experts say one consequence could be sharper scrutiny of the advertising ecosystem, including agencies, ad-tech intermediaries and even influencers endorsing gaming platforms. Rachana Rautray, Partner at JSA Advocates & Solicitors, said the framework creates what she described as a broader “liability architecture” that does not stop with operators. “The short answer is that the Act and Rules now create a liability architecture that does not stop at the operator. Rule 6(1)(d) allows the authority to issue directions to persons facilitating ads relating to online gamed and financial transactions or authorization of funds for any online game. This places ad distribution explicitly within the Authorities reach and not just ad creation. Considering that the Act in section 5 states aids, abets or induces, the jurisprudence suggests knowledge or intent. Accordingly, the buck truly stops at the entity in the supply chain that are agencies accepting briefs and clearing campaigns,” she said. Rautray added the rules could force a compliance architecture similar to other sensitive advertising categories.  Read more