In a significant development for the online opinion trading industry, the Supreme Court has refused to de-freeze the ₹100 crore bank account of Probo, a prominent opinion trading platform. This decision comes amidst increasing regulatory scrutiny of such platforms across the country.
Probo, which allows users to trade on their opinions on various real-world events like sports, current affairs, and entertainment, had its account frozen as part of an ongoing investigation. While the exact details of the investigation remain undisclosed, this action aligns with a broader trend of regulatory bodies and state governments taking a closer look at the operational model of opinion trading platforms.
This refusal by the Supreme Court to lift the freeze will likely impact Probo’s operations significantly. The ₹100 crore held in the account represents a substantial portion of the platform’s financial resources, potentially affecting its ability to process user withdrawals and carry out its day-to-day activities.
The legal landscape for opinion trading platforms in India remains complex. While some studies have argued that opinion trading can be considered a game of skill, various state governments have been inclined to view them as akin to gambling. Recently, Haryana notified its new gambling law, leading to Probo temporarily suspending its operations in the state. Similarly, Tamil Nadu has also been cracking down on such apps, sending notices to several firms, including Probo, and leading to some platforms implementing geo-fencing to restrict access in the state.
Probo has reportedly filed a writ petition in the Punjab & Haryana High Court challenging the constitutional validity of the new gambling law in Haryana and has also approached the Supreme Court seeking the consolidation of similar Public Interest Litigations (PILs) from other states.
This latest decision by the Supreme Court underscores the regulatory headwinds faced by the burgeoning opinion trading sector in India. The industry, which has witnessed significant user growth and investor interest, now grapples with the challenge of navigating legal ambiguities and convincing authorities of the skill-based nature of their platforms.
Key Highlights:
- The Supreme Court has refused to de-freeze a ₹100 crore bank account belonging to the opinion trading platform Probo.
- This decision comes amid increasing regulatory scrutiny of opinion trading platforms in India, with states like Haryana and Tamil Nadu taking restrictive measures.
- Probo has temporarily suspended operations in Haryana and is legally challenging the new gambling laws.
- The refusal to de-freeze the account is likely to significantly impact Probo’s financial operations.