Latest news with #PreventionofPublicGamblingAct
New Indian Express
30-05-2025
- Business
- New Indian Express
Tamil Nadu cracks down on opinion trading apps
CHENNAI: About four weeks after the Tamil Nadu Online Gaming Authority (TNOGA) sent show cause notices to 15 firms running opinion trading apps, a few of them have stopped offering their services in Tamil Nadu, while others are expected to soon follow suit, official sources said. Opinion trading application, better known as prediction markets, is a relatively new concept to India in which users are allowed to place bets on the outcomes of future events, not restricted to sport alone. According to a senior official, these opinion trading applications, although operate on similar lines as any other betting applications, they use the terminology of 'shares' for the payout instead of money. For instance, from a sporting perspective, users can bet on whether a particular IPL team would win or not and buy 100 shares worth Rs 5 each. Similarly, users could also bet on political developments like whether a politician will get a particular post or win an election. If their prediction comes true, the value of the 'shares' they purchased goes up, which can in turn be monetised. 'Though it is marketed as a game of skill, it is a game of chance and an outright form of gambling according to me,' a senior Tamil Nadu government official, who requested anonymity, said. TNIE could verify that one of the 15 popular applications which received a show cause notice, Probo, has enabled geofencing (location restriction) for users in Tamil Nadu. The official said that the firms had proactively taken this step after the TNOGA notices, as they may not have wanted to risk their entire website/app offering other games getting banned in Tamil Nadu. According to official sources, some of the opinion trading platforms which have received notices from TNOGA include Probo, MPL and SportsBaazi. They were all flagged for allowing opinion trading. Probo and SportsBaazi recently shut operations in Haryana after the state introduced the Prevention of Public Gambling Act, 2025. Chhattisgarh too banned opinion trading apps recently. This development also comes a month after the Securities and Exchange Board of India (SEBI) had issued a warning against opinion trading platforms. 'In some cases, opinion trading platforms are designed in a manner so as to resemble an investment platform as they use terminologies such as profits, stop loss, trading, etc., which are terms closely associated with trades in securities. In view of the above, investors are advised to note that in general, opinion trading does not fall within regulatory purview of SEBI, as what is traded is not security,' the SEBI warning said.
Mint
23-05-2025
- Business
- Mint
Haryana bans opinion trading apps
Haryana has banned opinion trading apps that allow betting on future events retrospectively from 9 April, according to an official Gazette notification reviewed by Mint. Prompted by a public interest litigation and subsequent high court intervention, the move renders platforms like Probo, SportsBaazi, and MPL Opinio illegal within the state. The state government ordered the ban under its Prevention of Public Gambling Act, 2025. This month, the Chhattisgarh High Court also directed geo-blocking of platforms like Probo, SportsBaazi, and MPL Opinio within the state, though it allowed them to operate elsewhere in the country. While companies did not immediately respond to media queries, MPL Opinio stopped operations in Haryana earlier this week — before the formal notification bringing the law into force. Though the Act exempts games of skill, it leaves out formats like fantasy sports, raising concerns over legal ambiguity. The Haryana Prevention of Public Gambling Bill, 2025 is aimed at curbing public gambling, including betting on sports and elections. One of the key provisions of the Act targets match-fixing and spot-fixing in sports, making such offences punishable with a minimum of three years' imprisonment, which may extend to five years, along with a fine of no less than ₹ 5 lakh. Repeat offenders face harsher penalties, with imprisonment of up to seven years. However, while the Act was enacted earlier, it has only now been notified. Previously, the Securities and Exchange Board of India also distanced itself from the opinion trading ecosystem, stating that such platforms do not fall under its regulatory purview. Despite lingering legal ambiguity, the opinion trading space continues to thrive. Industry estimates suggest that over 50 million users now engage with such platforms, generating nearly ₹ 50,000 crore in annual transaction volumes, with projected revenues of ₹ 1,000 crore for FY25. Leading platforms like Probo have attracted significant investor interest, raising $28 million from names such as Peak XV Partners, Elevation Capital, and The Fundamentum Partnership. TradeX counts Y Combinator among its backers, while SportsBaazi, originally a fantasy sports operator, has ventured into opinion trading—highlighting the sector's growing appeal. The Haryana law broadly defines a "bet" as any agreement—oral, written, or otherwise—between parties on the occurrence or non-occurrence of an event with an uncertain outcome, where incorrect predictions result in the loss or payment of a monetary or non-monetary stake.
