ASCI flags regulatory gaps in fast growing opinion trading sector

New Delhi: The Advertising Standards Council of India (ASCI) has released a whitepaper titled “Examining Opinion Trading in India”, highlighting the rise of opinion trading or prediction markets in the country and calling for greater regulatory clarity around the sector. The whitepaper comes amid a surge in popularity of such platforms, with figures from the National Initiative for Consumer Interest (NICI) suggesting more than 50 million users and transactions exceeding Rs 50,000 crore annually.

Opinion trading platforms typically allow users to place monetary bets on binary outcomes—such as yes/no predictions—related to real-world events, including politics and sports. Globally, this activity is often regulated under gambling laws or as financial instruments.

In India, the regulatory position remains unclear. The Securities and Exchange Board of India (SEBI), in an advisory issued on April 29, 2025, noted that “... opinion trading does not fall within regulatory purview of SEBI, as what is traded is not security…” Several public interest litigations are also currently pending, and courts are assessing the legal standing of such platforms.

ASCI, which has reviewed advertising by both Indian and international players in this space including social media influencer promotions has flagged concerns around the way these platforms are marketed. The advertising council notes that many such promotions frame opinion trading as a game of skill or knowledge, although the actual content often resembles speculative gambling.

The council also raised concerns about the lack of consumer protection measures, particularly for younger users or those financially at risk. According to ASCI, some advertisements make exaggerated claims about easy profits and present the platforms as reliable or guaranteed sources of income, often without any disclaimers.

Manisha Kapoor, CEO & Secretary General of ASCI, stated, “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.”