Opinion Trading Platforms Urge Regulation Amid Ban Calls

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The rise of opinion trading platforms in India has triggered debates about their legality and the need for regulation. These platforms, which allow users to trade opinions on future events, are now calling on the government to introduce clear guidelines instead of imposing an outright ban.

According to Storyboard18, the New Indian Consumer Initiative (NICI) PEN Media Literacy has urged the Ministry of Consumer Affairs, Ministry of Information & Broadcasting, Ministry of Finance, SEBI, and ASCI to ban opinion trading platforms in India. The request comes after concerns about the platforms resembling gambling rather than skill-based activities.

Globally, countries like the United States, United Kingdom, and Australia classify opinion trading platforms as wagering platforms and regulate them accordingly. However, India lacks specific legislation for these activities.

A spokesperson from SportsBaazi said, “We welcome and support MeitY in developing a framework to define permissible and non-permissible games. We firmly believe that sports trading will meet all prescribed regulations and frameworks distinguishing between games of skill and chance.”

Probo, one of the fastest-growing opinion trading platforms, has seen revenue rise from ₹2.6 crore in FY22 to ₹450 crore in FY24. A Probo spokesperson stated, “The industry is still in its early stages but holds immense potential. The need for regulation is critical to ensure its proper growth.”

The spokesperson further added, “Opinion trading platforms require the same, if not a higher, level of skill than traditional fantasy sports or card-based games. Features like exit/stop loss and book profit emphasize strategic trading rather than wagering.”

MPL, which offers the MPL Opinio platform, echoed similar sentiments. “All our games, including Opinio, undergo rigorous checks and meet the industry’s skill-based standards,” an MPL spokesperson said.

The Skill vs. Chance Debate: Defining the Future of Opinion Trading

Legal experts also highlight the need for clarity. Akshat Khetan, Founder of AU Corporate Advisory and Legal Services, explained, “If these apps merely allow users to stake money on unpredictable outcomes without requiring skill, they might fall under gambling laws. However, if they involve systematic, skill-based decision-making similar to stock market trading, they should be classified separately.”

Snigdhaneel Satpathy, Partner at Saraf and Partners, emphasized, “Wagering on future predictions can be considered gambling if it relies predominantly on chance rather than skill. Regulatory clarity is crucial for these platforms.”

Adarsh Somani, Partner at Economic Laws Practice, stated, “Many opinion trading platforms present themselves as ‘skill-based‘ games. However, whether these platforms genuinely embody skill or are merely a façade for chance-driven speculation remains up for debate.”

While opinion trading platforms claim to emphasize skill, external factors like market volatility and unforeseen events introduce elements of chance. This has led to calls for a balanced regulatory approach. As the government, regulatory bodies, and industry stakeholders navigate this complex landscape, establishing clear guidelines will be crucial for shaping the future of opinion trading in India.

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