CAIT urges Government to Ban Opinion Trading Apps, considering they are threat to Democracy

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The Confederation of All India Traders (CAIT) has urged the Indian government to ban opinion trading apps, arguing that these platforms, which let users bet on election outcomes, threaten electoral democracy.

According to a report by Storyboard18, CAIT sent a letter to Ashwini Vaishnaw, Minister of Electronics and Information Technology, and Piyush Goyal, Minister of Commerce and Industry. The letter, written by C

AIT National President B.C. Bhartia, describes these apps as a form of “digital satta” (online gambling) and highlights their potential risks.

The letter states that opinion trading platforms have over 50 million users in India. Platforms like Probo and MPL Opinio have gained significant traction, operating as digital satta marketplaces. These apps allow users to place bets on various future events, including elections, stock prices, and sports outcomes. These platforms facilitate transactions exceeding ₹50,000 crores annually and are projected to generate revenues of ₹1,000 crores in the 2024-25 financial year. Bhartia warned that advertisements for these platforms are deceptive, misleading users into believing they are engaging in skill-based activities rather than financial betting.

Bhartia further alleged that opinion trading platforms misrepresent themselves as games of skill through influencer endorsements. Influencers on platforms like Instagram and YouTube actively promote these apps as easy income sources. Accounts like “Fantasy Khabar” and “TECH 4 EARN” provide guides that claim users can make “unlimited money,” without revealing the speculative risks involved. He emphasized that such misleading advertisements create a false sense of security among users, encouraging participation in high-risk financial activities without full awareness of the consequences. According to the letter, young and digitally active individuals are most vulnerable to these deceptive marketing tactics.

CAIT also raised concerns about the impact of these platforms on India’s democratic processes. The letter claims that allowing users to bet on election results could influence public opinion and undermine democratic institutions. Given the scale at which these platforms operate, CAIT warned that they pose a significant risk to electoral integrity.

Internationally, several governments have taken strict measures against such platforms. Singapore’s Gambling Regulatory Authority (GRA) has blocked access to Polymarket, a prediction market platform. Taiwan has arrested individuals for election-related betting, while France has restricted access to similar platforms.

To address these concerns, CAIT proposed strict regulatory measures, including:

• Directing intermediaries, such as social media platforms, app stores, and cloud service providers, to remove all content related to opinion trading platforms.
• Enforcing Section 79(3)(b) of the Information Technology Act, 2000, to prohibit the hosting, publishing, transmitting, or sharing of materials promoting opinion trading apps.

The letter highlights multiple legal violations, including:

• The Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021, which prohibit intermediaries from supporting gambling-related activities.
• The Consumer Protection Act, 2019, which allows authorities to penalize misleading advertisements.
• The Guidelines for Prevention of Misleading Advertisements, 2022, which bans deceptive promotions of gambling platforms.
• The Bharatiya Nyaya Sanhita, 2023, which criminalizes gambling under Section 112.

The letter also referenced global regulatory practices and India’s previous actions against misleading digital advertising. CAIT pointed to India’s crackdown on false claims in virtual digital asset promotions as an example of effective intervention. The organization suggested that a similar approach tailored for opinion trading could help safeguard consumers and ensure ethical digital marketplaces.

Additionally, CAIT urged the Ministry of Electronics and Information Technology to collaborate with the Ministry of Home Affairs and the Ministry of Consumer Affairs. The goal is to implement legal actions against opinion trading platforms and their promoters. By involving multiple regulatory bodies, CAIT hopes to establish a more comprehensive framework to protect consumers from financial risks and safeguard India’s democratic integrity.

Authorities have yet to respond to CAIT’s request, but the demand for stricter regulations highlights the growing concerns over the influence of opinion trading apps on India’s financial and electoral landscape. Further developments on this issue are expected as regulatory discussions progress.

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