Finshots Daily The curious case of Indian prediction markets
May 26, 2025
Explore the intriguing world of opinion trading platforms in India. Discover why the Advertising Standards Council of India is pushing for regulation amid complex legal landscapes. The discussion uncovers the ambiguities these platforms face and looks at international regulatory practices. Tune in to understand the potential implications for users and how everything unfolds against the backdrop of recent legal challenges in the US.
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Kalshi's Political Betting Win
- In 2024, Kalshi legally won the right to allow political betting in the US.
- The US commodities regulator then withdrew its appeal after an agreement with Kalshi.
India's Prediction Markets Unregulated
- India's prediction markets exist in a legal grey zone without a dedicated regulator.
- SEBI disclaims jurisdiction as these trades don't involve traditional securities.
The Core Regulatory Classification Problem
- Classification of platforms as financial instruments or games of skill/chance blurs regulation.
- Many platforms claim skill-based status without legal validation, dodging gambling laws.