Meta's Strategic Shift: WhatsApp Now Permits Real-Money Gaming Ads in India, Alcohol Still Restricted

Meta, the parent company of WhatsApp, has made a significant update to its WhatsApp Business messaging policy as of August 23, 2024. This change now permits companies from regulated sectors, including online gambling and over-the-counter drugs, to send promotional messages via the WhatsApp Business platform in India. However, alcohol promotions remain prohibited within the country. This move marks a crucial step in Meta’s broader strategy to accelerate monetization of WhatsApp, especially as business messaging grows in importance as a revenue stream, diversifying beyond traditional digital advertising.

New Horizons for WhatsApp Business in Regulated Sectors

WhatsApp, the world’s leading messaging app with over 2 billion daily active users globally and more than 500 million users in India, is now opening its doors to certain regulated sectors. Meta’s policy adjustment specifically targets regulated or restricted industries, allowing them limited access to the platform for promotional activities. While this includes alcohol promotions in certain countries, India remains an exception, with such messages strictly forbidden.

Despite these allowances, companies in these regulated sectors are still barred from using the WhatsApp Business app to facilitate commerce directly, including buying or selling goods and services. These activities fall under Meta’s Commerce policy, which strictly prohibits such transactions. The WhatsApp Business app is primarily designed for small businesses, whereas the WhatsApp Business platform caters to medium to large enterprises.

Compliance and Regulatory Considerations

Under the new policy, businesses must ensure their messaging complies with various legal age restrictions, geographic limitations, and regulatory standards. This includes implementing technical and organizational measures to prevent messages from reaching individuals under the age of 18. Additionally, in regions where activities such as gambling or games of chance are prohibited, businesses are obligated to ensure their messages only promote lawful activities.

For companies interested in promoting online gambling, Meta now requires them to submit an application form, providing evidence that their operations are appropriately licensed or legally sanctioned within their target country. Meta’s definition of online gambling encompasses any service or product where monetary value is exchanged as part of an entry or prize method. This broad definition includes cash, digital currencies like Bitcoin, and real-money gaming formats such as fantasy sports and skill-based games like online rummy.

Varying State Regulations in India

Meta’s updated gambling policy reflects the diverse regulatory landscape across India. Not all real-money gaming formats are allowed under the application process, with permissions varying by region. For instance, Karnataka permits advertisements related only to fantasy sports and skill-based games, while Nagaland extends this to poker and lotteries. Conversely, states like Assam, Andhra Pradesh, Odisha, and Telangana prohibit all such ads.

This policy shift aligns with recent gaming-related amendments to the IT Act 2021 by the Ministry of Electronics and Information Technology (MeitY), which aimed to establish self-regulatory organizations (SROs) to determine the legality of real-money games in India. However, the ministry later chose not to proceed with the SRO plan. Earlier this year, India’s former junior IT minister Rajeev Chandrasekhar emphasized the government’s commitment to creating a safe and permissible gaming framework under Prime Minister Narendra Modi’s third term, aiming to foster a stable regulatory environment.

Expanding WhatsApp Business Capabilities

Meta’s latest policy change is part of a broader effort to enhance WhatsApp Business as business messaging becomes increasingly critical for revenue generation. Over the past year, Meta has introduced several new features aimed at small businesses, including AI tools that assist in customer interactions. These tools include AI agents that can act on behalf of businesses and intelligent AI assistants to create engaging ‘click-to-WhatsApp’ ads.

Moreover, Meta recently extended its Meta Verified paid verification service to WhatsApp Business users in India, Brazil, Indonesia, and Colombia, further expanding the platform’s capabilities.

Last year, WhatsApp shifted its business pricing model by introducing new conversation categories—Utility, Authentication, Marketing, and Service—allowing for more precise billing. The most recent update, which takes effect on August 1, 2024, reduces the rates for utility messages and raises the prices for marketing messages in select markets starting October 1, 2024.

This series of updates underscores Meta’s commitment to making WhatsApp Business a robust platform for enterprise messaging, ultimately driving growth and diversifying its revenue streams beyond conventional advertising.