Opinion Trading Platforms Under Law Enforcement Scrutiny Amid Rising Complaints and Security Risks

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Opinion trading platforms such as Probo, TradeX, Real11, HaaNaa etc. are under scrutiny from law enforcement and regulatory authorities given their aggressive advertising offering users to speculate and wager on the outcome of weather, cryptocurrencies, sports, politics, economics and other uncertain events. According to authorities, these platforms are offering users the chance to bet on binary outcomes of various events and thus violate several laws. Concerns are also mounting over the financial risks caused by these platforms, their misleading marketing tactics, and potential for addiction.

Unlike skill-based gaming, opinion trading relies to a large degree on chance with the platform setting odds and profits when players lose their bets, raising concerns about fairness and transparency.

Rapid Growth Raises Concerns

Opinion trading platforms have amassed over 50 million users and handle transactions exceeding ₹50,000 crore annually, as per the National Initiative for Consumer Interest (NICI). Their rise is fueled by aggressive advertising, which often portrays wagering as a reliable income source. Many advertisements highlight exaggerated winnings while downplaying the risks involved.

Consumer groups have raised concerns about the lack of regulation and the ease of access to such platforms. Online payment methods like UPI and other digital wallets enable users to participate without fully understanding the risks involved. Some platforms also allow users to make deposits and withdrawals without stringent Know-Your-Customer (KYC) verification, making them accessible to minors and vulnerable individuals.

Shipra Mathur, Founder of PEN Media Literacy, highlighted the social impact, stating, “The adverse impact extends to the stigma about losing money in general, and specifically, losing huge sums to online bets. Users may prefer continuing with opinion trading than seek help and risk the negative perceptions that will come their way.”

Calls for Regulation and Policy Reforms

Consumer advocacy groups, including NICI, are pushing for stricter regulations or an outright ban. Abhishek Kumar, Convenor of NICI, stated, “The exponential growth of opinion trading platforms in India is concerning. These betting platforms portray themselves as skill gaming platforms and entice unsuspecting users through misleading advertisements.”

Several experts argue that India’s current legal framework is inadequate in addressing the risks posed by these platforms. Globally, opinion trading is either heavily regulated or completely banned. Kumar further added, “With opinion trading platforms now achieving a scale that resembles financial exchanges, the Finance Ministry and SEBI may be the ideal regulators to oversee governance.”

Critics also point out that some of these platforms operate in a legal grey area, exploiting loopholes in existing laws. The absence of a central regulatory body allows them to function with minimal oversight, making enforcement challenging for authorities.

In fact, Probo, a leading opinion trading platform has been charge sheeted for running illegal online gambling and their founders Sachin Subash Gupta and Ashish Sushil Garg are currently enlarged on bail. The Bombay High Court has currently stayed trial in the matter and will consider their plea for quashing of the chargesheet.

The Rajasthan police had also recently frozen Probo’s financial transactions on fraud allegations. 50% of Probo’s assets are currently frozen by the Directorate General of Goods and Services Tax Intelligence (DGGI). 

Uncertain Legal Landscape

India’s policy on digital platforms and online gambling remains fragmented, with no comprehensive regulation specifically for opinion trading. The rapid expansion of these platforms has sparked concerns that they constitute gambling rather than skill-based gaming.

Legal experts suggest that opinion trading platforms could fall under India’s anti-gambling laws, which prohibit games of chance but allow games of skill. However, distinguishing between the two remains a contentious issue, complicating enforcement efforts.

While the debate continues, experts warn that the illusion of easy money could lead to devastating financial losses. With India hosting multiple high-profile sporting events, stricter oversight may be necessary to ensure responsible gaming practices. Authorities are expected to monitor these platforms closely in the coming months to assess their impact and determine necessary policy interventions.

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