MeitY puts opinion trading apps and betting games under scrutiny

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The surge in opinion trading apps platforms such as Probo and TradeX, which allow users to predict the outcome of sports, political events, crypto prices, weather etc. by betting their money has drawn the attention of the Ministry of Electronics and Information Technology (MeitY). These apps, which allow users to bet and wager on the outcomes of future events such as elections, sports tournaments, and box-office earnings, are now under scrutiny due to their classification as pure betting and gambling platforms in several countries, including the United States, the United Kingdom, and Australia.

As reported by Storyboard 18, a senior official from MeitY, speaking anonymously, revealed: “We are well aware of certain apps and websites engaging in opinion trading. They exploit loopholes in the system to expand their business. We will soon issue an advisory on this matter.”

Legal Grey Areas and Regulatory Challenges in India

Currently, India lacks specific legislation to regulate these platforms, which possibly violate the state gaming legislations, Information Technology Act and Bharatiya Nyaya Sanhita. Globally, opinion trading apps are governed by stringent rules as betting and wagering platforms. The absence of clear regulatory oversight in India has allowed such apps to proliferate, raising concerns among stakeholders and government bodies.

Opinion-based games have emerged as a profitable segment on RMG platforms, often at the expense of skill-based games such as poker, daily fantasy sports and rummy, which have . A representative from the RMG industry told Storyboard 18: “Opinion trading is essentially betting. Wagering on future outcomes is akin to making money through predictions. Unfortunately, a handful of people involved in these activities tarnish the reputation of the entire RMG industry, casting us in a poor light with regulatory bodies like MeitY.”

Interestingly, the Mumbai police had filed an FIR against leading opinion trading platform Probo in July 2022 under the Maharashtra Prevention of Gambling Act and Information Technology Act for running pure betting on activities such as number of views the trailer of a movie is likely to garner on YouTube and other sports and current affairs events.

The crime branch has also later filed a chargesheet in the matter in June 2023 after detailed investigation, naming the founder-directors of Probo, viz. Sachin Subhash Gupta and Ashish Sushil Garg as accused.

Gupta and Garg were arrested by the Mumbai police during the course of investigation and subsequently released on bail after providing bail bond of Rs. 5000/- each. The Probo founders had also approached the Bombay High Court seeking quashing of the chargesheet against them. The High Court in August 2024 admitted their writ petition and is considering the matter and has in the meanwhile stayed further proceedings in the trial court pending against them.

After 1st July, 2024 however, in addition to gambling act violations, running opinion trading platforms could also be said to be potentially indulging in petty organised crime under the Bharatiya Nyaya Sanhita by offering unauthorised gambling and betting services, leading to more serious consequences than state-level gambling act violations and imprisonment of a term extending up to seven years. 

The final view taken by Meity, law enforcement agencies and courts in the matter is however yet to be seen and will be known in the coming days.

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