In less than 48 hours from now, millions of cricket fans across the globe will switch on their TV sets to watch the debut match of Indian Premier League (IPL) Season 2025 between Royal Challengers Bengaluru (RCB) and Kolkata Knight Riders (KKR).
For this year’s IPL season broadcast rights, the Board of Cricket Control in India (BCCI), the apex cricket body in India, has decided to put a ban on all advertisements related to tobacco, alcohol and cryptocurrencies.
Currently, Indian cricket team’s official sponsor is Dream11, a popular India fantasy cricket platform aka a betting application. The Indian cricket team members, who are often elevated to the stature of demi-gods in India, wear Dream11 betting app logo on their jerseys.
The recent decision of BCCI to put a ban on crypto advertisements while allowing Dream11 to continue being its official sponsors, has not gone down well with the desi crypto community that has questioned the hypocrisy of the apex regulatory body.
Why Dream11 Betting App was not banned by BCCI?
According to media reports, BCCI has put a blanked ban on tobacco and alcohol advertisements due to an advisory issued by the union health ministry, claiming endorsement of these products by film stars or cricketers sets a bad precedent for the youth. However, no reason has been given for including cryptocurrencies under this blanket ban.
Meanwhile, for Dream11 fantasy platform, the Supreme Court of India has termed it as a “skill based game” and not “betting or gambling”, allowing a massive legal maneuver for the company to officially endorse the Indian Cricket Team. Dream11 has paid Rs 358 crore ($41.44 Million) under a contract to the BCCI for official sponsorship from July 2023 to March 2026.
Explained: Both Crypto and Entertainment Industry Taxed at 30% in India
Trading cryptocurrency in India is considered under the Money Laundering Act and the Indian government has imposed a 30% direct tax on trading with an additional 1% TDS. Moreover, stricter regulations have resulted in crypto exchanges facing serious consequences. The Indian government has collected Rs. 1,839 Crores through cryptocurrencies in the financial year 2023 – 2024.
Similarly, online gambling applications such as Dream 11 is considered a part of the entertainment industry and is also taxed at 30%.
So the current taxation policy of the Indian government has raised doubts in the minds of several crypto investors that if both sectors are taxed 30%, then on what basis has the BCCI chosen to ban only crypto ads?
Criticism of Cryptocurrency In India
Cryptocurrency is often viewed as a source of easy money and “gambling” in India due to its highly volatile nature. However, this reason can be widely considered as vague as the Indian stock market and any world market, commodity market, and Systematic Investment Plans (SIP) are also highly volatile and experience unexpected hindrances every once in a while. But that doesn’t make them gambling, so why only cryptocurrencies?
Gambling has been more harmful than crypto !
When considering the long-term prospects, gambling has been a major concern to the economy of the country as well as the well-being of an individual. While investing in a world asset could be a considerable risk, gambling has proven to have a higher fatality rate as it has a higher addiction rate.
Indian cybercrime department on the other hand has raised concerns following a significant surge in illegal betting and gambling.
What does the data say about gambling industry in India?
As per the official reports, India has witnessed 1.6 billion visitors across 4 major gambling websites in just 3 months. Out of this social media has contributed over 42.8 million visits to gambling websites. While about a combined 29.71% of Indians invest in the stock market, SIPs, Cryptocurrencies, and other commodity markets, more than 63% of Indians have interacted with gambling-related platforms.
Due to a “no-nothing pool entry” value of just Rs. 10, the young generation are usually known to make impetuous and hasty decisions due to these schemes. Moreover, easier availability and hassle-free login process has made it more popular and advisable over most of investing apps.
Moreover, over the past 4 years, the rate of younger crowd taking a personal loan or an express loan has significantly increased. Furthermore, the rate of defaults and delays has also experienced a sharp rise. Following this, reports of suicides, murders, and extortion have also risen as a large number of participants end up losing money. This provokes them to take extreme and unethical steps.
Unregulated Process of Verification Codes in Dream11
It takes a user multiple proof checks, verifications, and a cool-off period of over 24 hours before being able to start investing on any platform, considering all the documents meet the standards and are authentic. However, a user can start gambling “Skill testing” within 10 minutes of downloading the application or simply visiting the website of Dream11.
Conclusion
While Dream11 betting app has now turned into household name in India, thanks to its heavy promotional strategy and sponsorship of Indian cricket team, the decision by BCCI to put an arbitrary ban on crypto advertisements is short sighted. India accounts as a leading nation when it comes to cryptocurrencies and the government is now also mulling a policy change, in an attempt to mirror the pro-active steps taken by U.S. President Donald Trump regime towards the crypto sector.
Also Read: BCCI Prohibits Crypto ads in Women’s Premier League 2023
