The passing of the Online Gaming Bill in the Lok Sabha has dealt a massive blow to companies running real-money gaming platforms. The industry, which spends nearly $2 billion (about Rs 17,000 crore) annually on marketing and advertising, is now staring at a steep decline as the government moves to clamp down on online games involving money.
Ads Under Scrutiny, Celebs Step BackWith tighter monitoring of gaming promotions and fear of heavy fines, celebrity managers have started pulling down such advertisements from social media platforms. Sources say that this uncertainty has also cast doubt on Dream11’s three-year sponsorship deal with the Board of Control for Cricket in India (BCCI).
Who Endorses What?Over the years, fantasy gaming platforms have roped in some of the biggest names in Bollywood and cricket.
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Ranbir Kapoor and Aamir Khan have been faces of Dream11.
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MS Dhoni has endorsed Winzo.
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Hrithik Roshan is associated with RummyCircle.
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Shubman Gill and Sourav Ganguly promote My11Circle.
Executives say that the bulk of the ad money from real-money gaming firms is poured in during big-ticket cricket events like the IPL and ICC tournaments.
Celebrities Caught in a DilemmaWhile endorsement fees are massive, stars are treading cautiously. No one wants to jeopardize their public image by being linked to brands that may soon be outlawed. At the same time, walking out of contracts prematurely could lead to financial and legal complications. Until clarity emerges on whether these apps face a complete ban, celebs are stuck in a wait-and-watch mode.
A Billion-Dollar Halt in SpendingAccording to Siddharth Jhawar, country manager of digital marketing platform Moloko, real-money gaming companies alone spend $700 million (over Rs 6,000 crore) annually on digital performance marketing. Adding TV ads, offline campaigns, creative costs, and celebrity endorsements, the industry’s yearly ad spend touches $2 billion (about Rs 17,414 crore).
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