TradeX shuts RMG in India amid GST burden and regulatory crackdown
TradeX, an opinion trading platform, has announced the closure of its real-money gaming operations in India. The move follows increasing legal restrictions, a 28 percent Goods and Services Tax (GST), and recent bans in states like Chhattisgarh and Haryana. Founded in 2021 by entrepreneurs Divij Goyal and Ankit Shrivastava, TradeX allowed users to trade on public opinions and real-world events. The platform will now pivot to a free-to-play social gaming model.
Opinion trading platforms allow users to place monetary predictions on binary outcomesyes or no questionsbased on real-world events like sports, elections, or weather. For example, a platform may ask, Will Shubman Gill be Indias captain in Tests for the England Series 2025? Users will real money if their predictions are correct.
Legal setbacks and GST push platform out
The decision to exit real-money gaming comes after TradeX was blocked by the Chhattisgarh government under the Chhattisgarh Gambling Prohibition Act, 2022, which classifies such platforms as online gambling services. Haryana also prohibited the app, adding further pressure.
In a message to users, , After careful consideration, we are shifting from a real money gaming platform to a free-to-play, casual social gaming platform focused on fun and entertainment. Keeping that in mind we have stopped deposits of all users as well as stopping trading activities. This change is driven by the heavy 28 percent GST tax, which favours bigger players and made growth and profitability difficult for us.
Despite shutting down real-money operations, the company assured users that, Your existing funds are safe and accessible.
The platform had raised $1 million in seed funding in 2022 from TDV Partners, SoMa Capital, and angel investors including Anupam Mittal, Maninder Gulati, and Justin Mateen.
Regulators sound the alarm
Regulatory scrutiny over opinion trading has intensified. The Securities and Exchange Board of India (SEBI) , calling them unregulated and outside the purview of investor protection laws. SEBI clarified that these are not registered exchanges or intermediaries, and any financial transaction on them may be considered illegal.
The Advertising Standards Council of India (ASCI) also weighed in. In its recent whitepaper titled Examining Opinion Trading in India, ASCI called for urgent regulatory clarity and stated that any future advertising for such platforms must include disclaimers. It added that misleading or questionable ads would be forwarded to the authorities.
Criminal complaint against Probo executives
In March 2025, a first information report (FIR) was filed against directors of Probo, another opinion trading platform, under Section 13 of the Public Gambling Act, 1867 and Section 318(4) of the Bharatiya Nyaya Sanhita (cheating and dishonest delivery of property). The complaint, filed by Gurugram resident Abhishek Jain, claimed he lost ?20,000 on the app and was lured into gambling through event-based Yes or No predictions.
Expert concerns over financial impact
Financial experts warn that opinion trading platforms could have long-term effects on user behaviour. Sohil Jain, Senior Executive C Qualified Financial Advisor, in an exclusive conversation with SiGMA News said, With 5 crore users already engaged, these platforms are reshaping financial behaviour, particularly among young adults. The gamification elements create dopamine-driven engagement patterns that sideline proper financial planning. This short-circuit of financial education could have generational consequences as fundamentally unsound money habits become normalised.
He added, We need clear classification criteria that prevent gambling platforms from masquerading as investment vehicles, prominent risk disclosures showing actual odds, deposit limits tied to verified income, and cross-agency coordination between financial and gaming regulators. The current regulatory gap allows platforms generating ?1,000 crore in revenue to operate without appropriate oversightan unacceptable situation given the financial risks to millions of users.
Call for unified regulation
Legal experts argue that India must act quickly to close the regulatory gap. Corporate lawyer Supreme Waskar explained to SiGMA News, To address this regulatory gap, there is need for coordinated action across multiple government agencies, including SEBI, MeitY, RBI, and MHA. Whether through a new regulatory category under SEBI or a multi-agency task force, India must establish either a formal licensing and compliance mechanism or explicitly prohibit these platforms.
He also cited international models, In jurisdictions like the United States and the UK, similar event-based prediction markets are treated as speculative financial instruments or unlicensed gambling and are either banned or heavily regulated. India should draw from these examples and implement clear rules to prevent unregulated platforms from gaining mass traction under the radar.
