The ongoing cricket season, marked by the start of the ICC Champions Trophy and the upcoming IPL 2025 next month, has intensified interest and participation in these platforms, triggering fresh appeals for stronger oversight.
Spandan Foundation Voices Concerns to Finance Ministry
The Spandan Foundation, a prominent civil society group, has submitted a representation to the Finance Ministry highlighting the risks posed by fantasy sports platforms and opinion trading markets. The organisation specifically pointed to a "regulatory vacuum" and criticized misleading advertisements, which often mask these platforms as skill-based gaming rather than gambling."Fantasy sports and opinion trading platforms are nothing more than disguised gambling operations, misleading users under the pretence of skill-based gaming. They encourage individuals to stake their hard-earned money on illusions of reward that rarely materialize," Spandan Foundation emphasized in its representation.
According to the foundation, losses incurred on fantasy sports platforms have plunged numerous players into severe financial distress and heavy indebtedness, fueled by addiction and unrealistic expectations of profit.
Joint Appeal by Consumer Organisations for Immediate Regulation
Spandan's appeal closely follows a joint statement issued by ten organisations, including the New Indian Consumer Initiative (NICI) and PEN Media Literacy. These groups have collectively stressed the urgent need for regulatory intervention, especially concerning opinion trading platforms, which have witnessed unprecedented growth in recent years.Opinion trading, also known as prediction markets, allows participants to bet on real-world event outcomes, ranging from election results and sporting events to economic trends and entertainment scenarios. These platforms typically offer binary outcomes—such as "Yes" or "No"—upon which users stake their money.
The joint representation underlined the rapid rise of these platforms, pointing out that over 5 crore Indian users participate in opinion trading, driving annual transaction volumes to an estimated Rs 50,000 crore. They argue that the blending of gaming, trading, and investing has become dangerously blurred, heightening risks to consumers.
International Precedents Highlighted for Reference
Consumer organisations have also referenced international precedents, noting that several Asian and Western nations have implemented strict regulations and even prohibitions on opinion trading and prediction markets to protect consumers.Given India's explosive growth in fantasy sports—with approximately 22.5 crore users and an annual industry growth rate of around 30%—the groups are urging the government to swiftly address regulatory gaps. The goal is clear: protecting players from spiraling financial risks, misleading marketing, and the inherent vulnerabilities of unregulated markets.
As cricket season excitement peaks, so too do calls for ensuring consumer protection through comprehensive regulation.
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