Kalshi and Polymarket are continuing to allow users in India to access prediction market trading despite a government warning that such platforms are illegal under the country’s new online gaming framework.
India’s Ministry of Electronics & Information Technology warned in an April 25th Advisory that users were accessing “illegal and blocked prediction market and online betting platforms” despite domestic prohibitions. The Advisory specifically referred to Polymarket and similar platforms and was addressed to VPN providers that the Ministry said were being used to bypass restrictions.
India’s new Promotion & Regulation of Online Gaming rules came into force on May 1st, creating a national framework for online games and prohibiting online money games. The government says that the rules are intended to address concerns around addiction, financial losses, money laundering and other consumer risks.
Valeria Vouterakou, Kalshi’s Legal Counsel, says that the company has been in communication with the Indian government and has not been told to shut down. She said Kalshi would comply with government requests if they were made. Kalshi requires users to complete identity checks before trading.
Polymarket does not list India among its restricted countries. A company spokesperson said Polymarket is committed to complying with applicable laws and regulations in jurisdictions where it operates and maintains geoblocking measures where its services are not permitted.
The issue has become significant because of the scale of cricket-related trading. Kalshi has attracted substantial volume on Indian Premier League matches since the current season began in March, while a May 7th match between Lucknow Super Giants and Royal Challengers Bengaluru attracted US$27.7m in trading across Kalshi and Polymarket.
Jay Sayta, a Mumbai-based technology and gaming lawyer, told Bloomberg that Polymarket, Kalshi and similar prediction markets would fall under online money games under India’s legislation and would therefore be subject to a blanket ban.
Regulators in multiple markets are increasingly treating sports, political and entertainment contracts as functionally equivalent to betting when users stake money on event outcomes. The Indian situation raises enforcement questions. The technology Ministry says it is concerned about the use of stablecoin payments and VPN access to circumvent domestic restrictions. Both Kalshi and Polymarket allow dollar-denominated stablecoin deposits, creating a cross-border payment route that can sit outside conventional betting and banking controls. For India, the challenge is now practical as much as legal.
For the wider industry, the case is another sign that prediction markets are moving faster than national regulatory systems. The legal label may differ by jurisdiction, but the policy questions are increasingly familiar: Who is allowed to offer event-based wagering? How are payments controlled? How are consumers protected? And are licensed betting operators being placed at a disadvantage against products operating outside gambling law?
