Haryana notifies gambling law; platforms brace for legal uncertainty

The Haryana Prevention of Public Gambling Act, 2025, passed during the state’s budget session, could have implications for new and upcoming betting and gaming platforms. The Act, aimed at curbing public gambling, including “betting in sports or elections, match fixing or spot fixing in sports”, was notified on 21 May.

MPL Opinio, an opinion trading platform, stopped operations in Haryana earlier this week, before the formal notification brought the law into force. However, other opinion trading apps such as Probo remain operational. A Probo executive told Mint over Whatsapp that the app was “still operational” in Haryana. The company declined to immediately offer a comment.

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‘Opinion trading’ refers to participating in prediction markets where the underlying asset being traded is the likelihood of a specific future event occurring, based on the collective opinions of the participants.

The Gazette notification follows a public interest litigation (PIL) in the Punjab and Haryana High Court that called for action against online betting platforms operating as opinion trading platforms. The court had issued notices to the central and state governments. 

Ambiguity

The Haryana law broadly defines a bet as any agreement—oral, written, or otherwise—between parties on the occurrence or non-occurrence of an event with an uncertain outcome, where incorrect predictions result in the loss or payment of a monetary or non-monetary stake. One of the key provisions of the Act targets match-fixing and spot-fixing in sports, making such offences punishable with a minimum of three years’ imprisonment, which may extend to five years, and a fine of no less than ₹5 lakh. Repeat offenders face harsher penalties, including imprisonment of up to seven years.

The law bans ‘games of chance’ but exempts ‘games of skill’. Legal experts said whether a platform ultimately falls under its ambit will depend on case-by-case assessments and potential applications for exemptions.

“The challenge is that [the law] doesn’t explicitly define where newer formats such as opinion trading fall, leaving much to future regulatory clarity or judicial interpretation,” said a person familiar with the matter.

‘Severe blow to platforms’

Sonam Chandwani, managing partner at KS Legal &Associates, said, “The Haryana Prevention of Public Gambling Act, 2025, effective 21 May 2025, delivers a severe blow to opinion and fantasy trading startups in the state. By defining a ‘bet’ as any agreement on uncertain outcomes, regardless of monetary stakes, the Act casts a wide net that ensnares platforms which rely on skill-based speculative trading.”

She added, “Despite Supreme Court precedents distinguishing fantasy sports as skill-driven, the Act’s vague wording and lack of explicit exemptions create a legal minefield. For startups in Haryana’s thriving tech ecosystem, particularly in Gurugram, this signals a hostile environment. They now face a trilemma: navigate crippling regulatory ambiguity, relocate to more permissive states, or cease operations entirely. 

“The absence of a clear licensing framework or co-regulatory approach undermines Haryana’s reputation as a tech hub, threatening thousands of jobs and deterring investors wary of regulatory overreach, especially after the 2023 GST reforms. This legislation risks choking innovation, pushing cutting-edge startups out of Haryana and jeopardising India’s broader digital economy ambitions.”

‘Regressive move’

Ketan Mukhija, senior partner, Burgeon Law, said, “Haryana’s new gambling act is a regressive move that unfairly lumps opinion trading and potentially fantasy sports under the guise of betting, ignoring their skill-based nature. By broadening the definition of gambling, it criminalises innovation and chills digital entrepreneurship. The law fails to distinguish between chance-based wagering and informed prediction, creating unnecessary legal risk. This could drive away platforms that have otherwise contributed to India’s booming digital economy."

Shoubhik Dasgupta, partner, Pioneer Legal, said, “The new law criminalises opinion trading, which essentially is a game of chance where people bet on events with binary outcomes – yes or no. The act distinguishes between games of skill and games of chance.”

‘Register for exemption’

Other lawyers said platforms may need to register in Haryana to get an exemption if they offer games of skill. Ajay Khatalawala, managing partner, Little & Co, said, “Various fantasy sports platforms will have to get themselves registered with the relevant state authorities in Haryana and comply with the applicable laws in force for the time being.”

The Supreme Court and various high courts have categorised fantasy sports as games of skill.

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Khatalawala added, “With respect to opinion trading, the said platforms fall into a gray area under the Act. If the outcomes of opinion trading are not purely skill-based, they are likely to be classified as games of chance under Section 2(f) of the Act. Accordingly, opinion trading platforms are liable to face penalties under the Act unless they are recognised as games of skill by the state of Haryana. It would also mean that the opinion trading platforms would have to restructure to comply with the legal requirements to be classified as games of skill,” he said.

Legal scrutiny

Event-based opinion trading apps and fantasy sports platforms such as Probo and SportsBaazi have defended themselves in Haryana on the grounds that they are ‘games of skill’. But these platforms have faced scrutiny in recent years.

In July 2022, the Mumbai police filed a first information report (FIR) against Probo under the Maharashtra Prevention of Gambling Act and the Information Technology Act. The allegations pertain to allowing users to bet on uncertain events, such as predicting the number of YouTube views a movie trailer would garner.

A similar PIL in Gujarat was initially dismissed in 2023, but the Supreme Court later reinstated it, directing the Gujarat High Court to examine the matter independently.

A PIL was also filed in the Punjab and Haryana High Court against opinion trading platforms including Probo. It argued that these platforms facilitate online betting under the guise of opinion trading, violating laws such as the Public Gambling Act, the Bharatiya Nyaya Sanhita, 2023 (Section 112), the Haryana Prevention of Public Gambling Act, 2025, and the Information Technology Intermediary Guidelines and Digital Media Ethics Code Rules, 2021 (as amended in 2023). The high court issued notices to the Union of India, Reserve Bank of India, Securities and Exchange Board of India, Enforcement Directorate, and the state of Haryana, seeking their responses.

This month the Chhattisgarh High Court also ordered the geo-blocking of platforms such as Probo and SportsBaazi in the state, though it allowed them to operate elsewhere in the country. Sebi has also warned investors that it does not regulate these apps, unlike in the US, where such apps are regulated by the Securities Exchange Commission.

Thriving under pressure

Despite lingering legal ambiguity, opinion trading platforms continue to thrive. Industry estimates suggest that more than 50 million users now engage with such platforms, generating nearly ₹50,000 crore in annual transaction volumes, with projected revenues of ₹1,000 crore for FY25.

Leading platforms such as Probo have attracted significant investor interest, raising $28 million from the likes of Peak XV Partners, Elevation Capital, and The Fundamentum Partnership. TradeX counts Y Combinator among its backers, while SportsBaazi, originally a fantasy sports operator, has ventured into opinion trading—highlighting the sector’s growing appeal.

Note: An earlier version of the article said opinion trading apps have been banned in Haryana. It has been modified to clarify that a ban on opinion trading is still open to legal interpretation on a case-by-case basis.

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