Digital Satta in disguise: Tamil Nadu’s crackdown on opinion trading apps triggers national ban calls
At the Storyboard18 Digital Entertainment Summit, Dr. MC Sarangan, member of TNOGA, categorically labelled opinion trading platforms as “nothing but betting in disguise.”
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A stance by the Tamil Nadu Online Gaming Authority (TNOGA) against opinion trading platforms has ignited a growing movement demanding a complete ban on such services across India. Multiple voices are now seeking a blanket ban on 'Digital Satta' in the country.
At the Storyboard18 Digital Entertainment Summit, Dr. MC Sarangan, member of TNOGA, categorically labelled opinion trading platforms as “nothing but betting in disguise.” He alleged that many of these platforms operate under the facade of prediction markets, while essentially functioning as gambling entities. “We’ve gone after surrogate advertising too. I don’t think anyone else in the country has done that,” Sarangan said, while urging collective action from regulators, companies, media, and even parents to combat the growing menace.
Sarangan’s statement has amplified concerns already raised by the Real Money Gaming (RMG) industry, legal experts, and public interest groups, with many now calling for sweeping regulatory and legal actions to outlaw such platforms nationwide.
The timing of TNOGA’s remarks coincides with mounting legal scrutiny. Public Interest Litigations (PILs) challenging the legality of opinion trading platforms have been filed in several High Courts—including those of Gujarat, Punjab & Haryana, Chhattisgarh, and Bombay—on the grounds that these platforms violate the Public Gambling Act, 1867, and corresponding state gambling laws.
In 2025, these cases were consolidated and transferred to the Supreme Court, which is now set to hear the matter.
Ashish Philip, Partner at Lakshmikumaran and Sridharan Attorneys, noted that while TNOGA’s regulations prohibit gambling and regulate skill-based games, there’s no explicit ban yet on opinion trading. “However, TNOGA’s recent crackdowns make it clear that such platforms are being viewed as gambling under state law,” he said.
Philip explains, "The Tamil Nadu Online Gaming Authority (TNOGA) has taken a firm stance against opinion trading, treating it as gambling despite ongoing debate over whether it qualifies as a game of skill. While TNOGA regulations prohibit gambling and betting and regulate games of skill, there is no explicit ban on opinion trading. However, recent crackdowns make it clear that TNOGA views such platforms as falling under the state’s gambling prohibitions."
Philip said, "SEBI’s caution stems from concerns that users may be misled into believing opinion trading is a secure investment avenue, thereby exposing them to potential manipulation and risk." In its public warning, SEBI had raised red flags about how opinion trading platforms structure “yes/no” outcome bets under the guise of trading, often using terminology like "profit", "stop loss", and "market trends" to simulate the feel of legitimate financial markets. The regulator emphasized that such design misleads users and puts them at serious financial and legal risk.”
Independent legal expert Gowree Gokhale underlined the legal grey area these platforms operate in. “They can only function in states where the ‘preponderance of skill’ test is satisfied. But prediction of future events—especially political outcomes—is hard to define as skill-based. Without a central law, each state will ultimately decide the fate of these platforms,” she said.
Gokhale said, “So far as SEBI is concerned, generally, where the prediction questions relate to the securities, it would fall in its jurisdiction. At present since there is no operating Central law, the fate of opinion trading platform will be decided on a state to state basis.”
Amid increasing scrutiny, opinion trading platforms such as SportsBaazi, Probo, and MPL Opinio have shut operations in multiple. While TradeX, an opinion trading platform, had announced the shutdown of its real-money gaming operations in India following increasing legal restrictions and mounting regulatory challenges. Legal experts say this could be the beginning of a wider pullback unless platforms can prove compliance with state laws and skill-based criteria.
Snigdhaneel Satpathy, Partner at Saraf & Partners, emphasized that SEBI’s deeper concern stems from the absence of investor protections and potential for manipulation. “If SEBI or the Ministry of Electronics and IT steps in decisively, a nationwide ban cannot be ruled out,” he said. However, he also cautioned against stifling digital innovation. “These platforms sit at the edge of financial gamification and participatory finance. Drawing the line between exploitation and innovation is the key.”
Storyboard18 had earlier reported about the unchecked rise of opinion trading games on real-money gaming platforms, which has drawn the attention of the Ministry of Electronics and Information Technology (MeitY).
A top Real Money Gaming operator on condition of anonymity said, "These apps are clearly involved in wagering as there is speculation on the outcome of a certain event. It is not just a violation of the gambling acts in various states but also an organised crime under the Bharatiya Nyaya Sanhita making it a non-bailable and cognisable offence."
"Because of these opinion trading platforms, the government is looking at us from the same lens which is impacting the entire industry. These platforms should be banned as they violate basic principles of skill and chance."
It should be noted that the Enforcement Directorate (ED) had launched a search operation at multiple offices of the opinion trading platform Probo on July 8 and 9 under the Prevention of Money Laundering Act (PMLA), 2002. The searches targeted four locations in Gurugram and Jind, Haryana, focusing on Probo's promoters Ashish Garg and Sachin Subashchandra Gupta. These actions stem from multiple FIRs registered in Gurugram, Palwal, and Agra under provisions of the BNS and the Public Gambling Act.
Earlier, the Confederation of All India Traders (CAIT) formally appealed to the government for a nationwide ban, calling these platforms "digital satta" that threaten economic stability and democratic integrity. Their letter warned of the risks of betting on election outcomes, which could manipulate public perception and compromise democratic institutions.
In a more recent move, the New Indian Consumer Initiative (NICI) PEN Media Literacy program announced it will send a joint representation to several ministries and regulators—including the Ministry of Consumer Affairs, the Ministry of Finance, SEBI, and ASCI—demanding an immediate ban on opinion trading platforms.
On July 18, the Supreme Court has transferred to itself a clutch of Public Interest Litigations (PILs) pending in various High Courts, challenging opinion trading platforms. With this, all related matters will come under the apex court's direct consideration.
A slew of PILs have been filed at the Bombay, Gujarat, and Chhattisgarh high courts, arguing that opinion trading platforms are similar to betting and gambling.
Storyboard18 reached out to SportsBaazi, Probo and MPL Opinio for a comment. They have declined to share their official comments.
