Ad council of India warns of opinion trading, urges regulatory clarity
The Advertising Standards Council of India (ASCI) has released a detailed whitepaper titled “Examining Opinion Trading in India”, raising critical concerns about the fast-growing sector of opinion trading platforms. These platforms allow users to place monetary bets on the outcomes of real-world events — including sports, politics, and entertainment — creating a grey zone in the regulatory landscape. ASCI has urged authorities to clarify the legal status of these platforms and has highlighted the risks posed by misleading advertising practices.
50 million users at stake
According to the National Initiative for Consumer Interest (NICI), opinion trading platforms in India now attract more than 50 million users, with annual transactions exceeding ₹50,000 crore ($5.85 billion). These platforms operate by inviting users to bet on binary (yes/no) outcomes of current events, resembling both prediction markets and betting mechanisms.
Globally, opinion trading falls under financial regulation or gambling laws. In India, however, these platforms exist in a legal vacuum. The Securities and Exchange Board of India (SEBI) issued an advisory on 29 April 2025, stating that such activities do not fall under its regulatory scope, as the traded products are not classified as securities.
Legal status under review
Multiple public interest litigations are currently pending in Indian courts, seeking a legal interpretation of opinion trading platforms. The ambiguity has left regulators, consumers, and platforms without clear guidelines on what is permitted and what is not.
the urgent need for a unified legal stance. If the platforms are found to be legal, then advertising standards must be introduced to protect consumers. If they are not legal, enforcement actions and monitoring mechanisms need to be implemented across all platforms, including social media and digital advertising spaces.
Divya Sharma, corporate lawyer, in an exclusive conversation with SiGMA News, “The legality of Opinion Trading Platforms has become a contentious issue within the online gaming and digital trading sectors. Such activities are broadly subject to existing legal frameworks, including the Public Gambling Act 1867 and the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021, as amended from time to time.
“However, a major concern arises from the fact that many of these platforms rely predominantly on chance rather than skill, rendering their operations potentially unlawful under the current Indian laws.”
Advertising raises red flags
ASCI’s analysis found several local and global platforms advertising opinion trading aggressively, often with endorsements by influencers. These ads commonly claim that the platforms are skill-based and knowledge-driven. However, ASCI found many of these advertisements to be misleading, lacking disclaimers, and promoting unrealistic earning expectations.
Manisha Kapoor, CEO & Secretary General of ASCI, said, “Opinion trading platforms raise serious concerns as their structure and mechanics closely resemble betting in some instances and can expose consumers to significant financial risk. The advertising that accompanies these platforms often heightens the risk, with exaggerated claims of easy winnings and false assurances of reliability. No disclaimers cautioning consumers are provided. ASCI’s whitepaper highlights these risks and urges urgent regulatory clarity so appropriate steps can be taken to protect consumers from potential harm.”
Call for responsible advertising
Regulatory authorities have expressed increasing concern in response to the rapid expansion of market share, growing investment, and the overall proliferation of online opinion trading platforms, Sharma further added.
“According to a report by the National Initiative for Consumer Interest, this surge is largely attributed to aggressive marketing and advertising strategies, which are in clear violations of Rule 4A of the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021 (as amended from time) and guidelines issued by Central Consumer Protection Authority (CCPA).”
The whitepaper has identified that most opinion trading promotions do not warn users about the associated risks. There is also a noticeable absence of consumer protection measures such as disclaimers, age restrictions, or financial risk disclosures.
ASCI is calling for strict advertising rules if these platforms are to operate legally in India. These include mandatory risk warnings, prohibition of exaggerated claims, and clear identification of sponsored content. The whitepaper also explores how other countries regulate similar services and suggests that India can draw from those frameworks.
