Sri Lanka’s cricket community is abuzz with anticipation as the Asia Cup 2023 kicks off, with the Sri Lanka national cricket team unveiling 1xBat, a sports news website and surrogate of a betting company, as its Official Sponsor. This decision has sparked discussions about the legal and regulatory aspects of sports betting and advertising in cricket.
Legal distinction between 1xBat and 1xBet
Attorney-at-Law and expert on entertainment, intellectual property, media and broadcasting, and sports law Chanakya Jayadeva emphasised that while the names 1xBat and 1xBet may sound similar, they represented different entities. The resemblance in names alone does not have any legal standing. Nevertheless, he noted that if there was any indirect marketing of betting or if 1xBat’s website was linked to the 1xBet betting site, it could be seen as an attempt to circumvent laws against betting advertising.
“You can’t say that 1xBat and 1xBet are the same things, because they are clearly different and the fact that they may sound similar won’t have any legal standing to object, except in a given situation in trademark. However, if there is any indirect marketing of betting or when you go to the 1xBat site and as part of that website, the 1xBet is shown and contains betting or gambling as well, then one could say that they are trying to circumvent the laws against betting and gambling advertising,” Jayadeva said.
Regulation of betting advertising
Jayadeva pointed out that betting itself was not illegal in Sri Lanka and was subject to regulation. He said that advertising related to betting and gambling, especially during cricket matches, was closely scrutinised and that content advertising, such as displays on hoardings within cricket stadiums, was a concern as it could be captured by cameras during broadcasts. If such content advertising was observed during the Asia Cup and broadcasted, it may be considered a violation of laws against betting and gambling advertising, he noted.
“Betting is stringently regulated in Sri Lanka. On the other hand, if the above position is affirmative, that is to say 1xBat is a site that takes you to gambling products and if 1xBat is displayed on any advertising done on the hoardings at the stadium when the cricket match is played, then there can be a problem. This is because throughout the match, the live telecast cameras will end up catching such displays and broadcasting them – this is called content advertising.
“If that happens during the Asia Cup and if the Sri Lankan broadcaster ends up broadcasting it, then it can be said that there is a violation of laws against advertising of betting and/or gambling. This problem will occur even in the instance where the 1xBat site is displayed by way of various visual graphics via a TV broadcast, provided that 1xBat is a site that takes you to gambling products.
“Regarding betting per se in cricket, not about broadcasting, unless there is an express bar from the authorities, the law of the land, the ICC or SLC, there is no legal impediment for 1xBat to be the sponsor of the Sri Lanka Cricket team for the Asia Cup, even if it is a site that directs you to a betting site,” Jayadeva explained.
Approval from relevant authorities
The Sri Lanka Cricket (SLC) Council, including SLC Secretary Mohan de Silva, expressed that they had received approval for 1xBat’s sponsorship from the Asia Cricket Council (ACC). De Silva highlighted that the company was a subsidiary of a betting firm under a surrogate group and that similar sponsorships were seen in the Indian Premier League (IPL) franchises. Thus, there appears to be no legal impediment to having such a sponsor, given the ACC’s approval.
“We have received approval from the ACC. This is a subsidiary of a betting company under a surrogate group. Even franchises in the IPL are being sponsored by them. I don’t think there is any impediment to having a sponsor like that where cricket is concerned. Betting comes under individual betting. Even in the past we have verified certain similar firms coming in as sponsors,” De Silva said.
Tender process and taxation
The selection of 1xBat as the sponsor for the Sri Lanka National Cricket Team for the Asia Cup 2023 was the outcome of a competitive tender process, Sri Lanka Cricket Council Media Spokesman Prasanna Rodrigo said.
“The Sri Lanka national cricket team sponsor for the Asia Cup 2023 was selected through a tender process. The best bidder – which was 1xBat – received the tender. I don’t have the names of the bidders at hand at the moment. Sri Lanka Cricket has received the approval of the Asia Cricket Council to accommodate the brand,” he said.
Regarding Sri Lankans betting on the parent company of 1xBat – 1xBet – and potential taxation, Rodrigo noted that this issue fell under the jurisdiction of the relevant tax authority.
“The issue of Sri Lankans betting on the parent company of 1xBat – 1xBet – and whether the Government could tax them would have to be answered by the relevant tax authority,” Rodrigo said.
As the Asia Cup gets underway, the legality and regulation of sports betting sponsorships in cricket continue to be scrutinised. The approval from the ACC and adherence to regulatory guidelines will be crucial factors in ensuring a smooth sponsorship arrangement between the Sri Lanka cricket team and 1xBat.