Zepto Caught in Scandal Over Illegal Operator Parimatch Advertising

Gambling Ads in Zepto Orders

Quick commerce service Zepto has come under scrutiny after users reported promotional flyers for Parimatch included in their deliveries. The flyers promoted an illegal offshore operator, with advertisements not only inside orders but also on billboards across Tamil Nadu.

This behavior violates the prohibitions of the Ministry of Information and Broadcasting as well as the guidelines of the Advertising Standards Council of India (ASCI). Despite existing restrictions, Zepto was literally delivering gambling ads to customers’ homes, sparking widespread criticism from experts and the public.

Regulators Respond

Several agencies took interest in the situation:

• Ministry of Electronics and IT: previously blocked 1,410 illegal gaming websites in 2024;
• Central Consumer Protection Authority (CCPA): reminded platforms about the ban on advertising illegal services;
• ASCI and MeitY: warned platforms against directly or indirectly supporting illegal betting.

Lawyers and gaming industry representatives warn that Zepto’s actions may violate:

• Consumer Protection Act (advertising illegal services);
• IT Act (dissemination of prohibited content);
• State gambling laws.

Technology and gaming lawyer Jay Sayta noted that Zepto could be held accountable, including
facing fines and content takedowns.

Industry Comments

Roland Landers, head of the All India Gaming Federation (AIGF), stated:

“It is concerning that quick commerce services, originally built for convenience, are now becoming channels for aggressive promotion of illegal gambling. This undermines consumer trust and jeopardizes the entire regulatory framework.”

Representatives of legal businesses also expressed concern that while legitimate companies face legal battles, illegal operators are actively advertising:

• Parimatch ads are appearing on billboards in key areas of the state;
• The campaign is disguised as sports or entertainment, masking the true nature of the offering.

What the Law Says

Why It Matters

⚠️ Gambling is illegal in most Indian states, including Tamil Nadu, and leads to serious financial and social consequences, especially among youth.

⚠️ Advertising such platforms under the guise of legal entertainment not only breaks the law but also erodes user trust in digital services.