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The gaming scenes in South Asia are currently a tale of very different scripts. While one nation finds its digital frontiers being reshaped by a tightening regulatory environment and demanding financial pressures, its island neighbour is charting a bold course towards unified oversight and modernization. This report unpacks two major developments sending ripples through the region: the sudden pivot of a once-promising Indian opinion trading platform and a contrasting, structured regulatory initiative taking shape in Sri Lanka.
First, let’s look at the tremors on home ground. TradeX, a name that not long ago buzzed with potential and attracted backing from marquee investors like Y Combinator, has pulled the plug on its real-money operations. Facing the unyielding pressure of a 28% GST regime and a rising tide of legal challenges, the platform is now steering towards a free-to-play social gaming model – a stark indicator of the tough climate. And TradeX isn’t alone in this squeeze; Probo, a leading name in India’s opinion trading space, is also caught in a tangle of FIRs and high-court petitions, signalling a wider storm brewing for the sector.
Meanwhile, just across the Palk Strait, Sri Lanka is charting a decidedly different course. The island nation is moving to introduce a landmark bill aimed at creating a central Gambling Regulatory Authority (GRA). This ambitious, forward-looking framework is designed to bring transparency, accountability, and streamlined oversight for all gambling-related activities.
These contrasting narratives paint a vivid picture of the diverse regulatory currents at play. Let’s explore the details and what these developments might mean for the future.
TradeX Pulls Plug on Real Money Play: GST Sting & Legal Storms Rock India’s Opinion Trading Platforms
The Indian online gaming landscape just got another major shake-up. Opinion trading platform TradeX has officially hit the brakes on its real money operations, announcing a striking pivot towards a free-to-play, casual social gaming model. This move sends a clear signal about the intense pressures currently bearing down on the sector and serves as a stark reminder of the tricky terrain for what was, not so long ago, a rapidly expanding segment of India’s digital economy.
From Bright Idea to Abrupt Shift: The TradeX Story
Launched in 2021, TradeX arrived with a compelling pitch: to build India’s first liquid and accessible opinion trading exchange. The concept was pretty straightforward: letting users “trade” on the outcomes of future events, something the founders always argued was about skill-based prediction, not a game of chance. This fresh approach quickly caught the eye of investors, helping TradeX collect around $1.20 Million in seed capital from prominent backers like Y Combinator, Soma Capital, and Wellfound.
However, the path from an ambitious startup to a company stepping away from real-stakes action has been anything but straightforward. The regulatory environment took a sharp turn in late 2023, when the Indian government introduced 28% GST on the full value of initial deposits made on real-money gaming platforms. This tax applied whether those deposits resulted in wins or losses. For platforms like TradeX, this proved to be a death knell. In its public announcement about the change, the company stated the new tax structure “left little room for sustainable margins” and also mentioned how it tended to favour players with deeper pockets. Consequently, all users were instructed to withdraw their remaining funds from the app by May 30, 2025, as all real-money user deposits and trading activities were brought to a halt.
The financial strain wasn’t the only headwind. The final push towards this new direction seems to have come from mounting legal challenges. In early May 2025, following a public interest litigation (PIL) initiated by journalist and activist Sunil Namdeo, the Chhattisgarh Government directed internet service providers to block access to websites like TradeX within the state, citing violations under the state’s interpretation of gambling laws. Rather than get drawn into a multi-front struggle against economic pressures and legal complexities, TradeX chose to reinvent itself, steering towards the lighter, social-first corner of the gaming world, well away from the intense regulatory spotlight.
A Wider Chill: Opinion Trading Under the Magnifying Glass
TradeX’s decision to step back isn’t happening in a vacuum. It comes as the environment for real money opinion trading platforms across India becomes increasingly restrictive. Legal scrutiny and enforcement actions have ramped up, with authorities more frequently viewing these platforms as operating in a grey area uncomfortably close to the nation’s gambling laws.
Take, for example, the unfolding situation with a rival platform, Probo. The Gurugram-based company, which allows users to trade on “Yes” or “No” outcomes for various events, finds itself tangled in a growing net of legal issues. An FIR was registered on March 25, 2025, at the Sector 50 police station in Gurugram, based on a complaint from Gurugram resident Abhishek Jain. The complaint alleges that users are “lured and induced into gambling and betting” under the guise of opinion trading.
This police FIR names directors Ashish Garg, Sachin Subashchandra Gupta, and Shweta Sharma, citing charges of cheating and promoting gambling on the app. After the Punjab and Haryana High Courts did not provide any interim relief, Probo has taken its case to the Supreme Court. The matter is slated for a hearing today, June 2, 2025, before a vacation bench comprising Justices Prashant Kumar Mishra and Augustine George Masih.
But Probo’s legal complications don’t stop there. Earlier in 2023, the Mumbai crime branch filed a chargesheet against Probo’s founders, invoking provisions from the Maharashtra Prevention of Gambling Act, 1887, and the IT Act, 2000. The Bombay High Court temporarily paused proceedings in that particular matter.
Regulators Chime In: A Cautious Stance and Advertising Concerns
Even regulatory bodies have weighed in on the discussion. The Securities and Exchange Board of India (SEBI) recently made a point of distancing itself from the entire opinion trading space, issuing a press release to caution the public that such platforms fall outside its regulatory domain. Adding more complexity to the industry’s challenges, the Advertising Standards Council of India (ASCI) has flagged a number of advertising violations and raised questions about the legality of how these applications are being marketed to potential users.
To top it all off, the Supreme Court has issued a notice on a petition filed by Probo, which seeks to consolidate multiple PILs lodged against it across high courts in Bombay, Gujarat, and Chhattisgarh. These cases don’t just question the operational models of platforms like Probo and TradeX—they call for criminal action and a nationwide ban on such activities.
As this legal storm continues to gather intensity, and the industry finds itself caught between hefty tax obligations and ill-defined regulatory zones, the future of opinion trading in India looks decidedly uncertain. TradeX might be the first prominent name to pivot away from real-money operations under these combined pressures, but many observers feel it’s unlikely to be the last. The coming months, especially with key Supreme Court hearings on the docket, will be crucial in shaping this embattled sector’s path forward.
Sri Lanka’s Bold Gambling Reform: A Potential Blueprint for the Region?
While India’s gaming industry currently navigates a complex maze of legal questions, its neighbour, Sri Lanka, is stepping forward with a notably different vision, offering a sneak peek at what a streamlined, modern gambling framework might achieve. Just last month, in May 2025, President Anura Kumara Dissanayake, in his role as Minister of Finance, pulled the curtains back on a draft bill to establish the Gambling Regulatory Authority (GRA). This new, dedicated body has been engineered to oversee all gambling operations comprehensively, champion transparency, and decisively clamp down on illicit activities.
The proposed Gambling Regulatory Authority Act is about a complete system overhaul. It aims to sweep away archaic laws like the Horse Racing Betting Ordinance (it’s worth noting that horse racing betting remains permissible in India, often defended by its 200-year-old heritage), the Gambling Ordinance, and the Casino Ordinance by a unified system of governance. The bill has already been officially published (gazetted) and is now on the path to Parliamentary approval.
This forward-thinking initiative could soon position Sri Lanka as one of the very first nations in South Asia to bring all its gambling laws under the umbrella of a single, independent regulatory authority.
Sri Lanka’s decisive move to modernize and unify its gambling laws is a striking contrast to the often fragmented and responsive regulatory measures seen in India.
In India, “betting and gambling” falls under state jurisdiction, as outlined in entry 34 of List II (the State List) in the Seventh Schedule of the Constitution. Consequently, state-level laws define offences related to betting and gambling. This means, as per the provisions of Article 246 read with Article 162 of the Constitution, individual State Legislatures hold the authority to create laws on these matters. Even Union IT Minister Ashwini Vaishnaw recently reiterated in the Lok Sabha that regulations concerning betting and gambling are indeed the domain of individual states.
Therefore, Sri Lanka’s ambitious creation of a central Gambling Regulatory Authority emerges as a potentially insightful example for India. As India’s gaming sector faces escalating legal and tax-related examinations, the inherent drawbacks of a piecemeal, state-by-state regulatory approach are becoming increasingly apparent. Sri Lanka’s path might just offer some valuable lessons.
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