India’s technology ministry acted even before the new regulations came into force. On April 25, the Ministry of Electronics and Information Technology (MeitY) issued an advisory asking VPN providers and other intermediaries to stop facilitating access to illegal betting sites and prediction market platforms. Polymarket and similar companies were named in the warning.
Why India Is Targeting the Access Route
The Promotion and Regulation of Online Gaming Act, 2025 was enacted by Parliament in August 2025, while the 2026 Rules came into force on May 1. Reuters had previously indicated that, under the law, violations may lead to jail terms of up to three years and fines.
This latest advisory indicates a change in strategy. India not only blocks websites but also monitors ways by which users gain access to offshore websites.
Kalshi and Polymarket Stay in Focus
According to The Economic Times reporting citing Bloomberg, after the warning, both Kalshi and Polymarket still allowed users in India to either register or participate in trading activities. Kalshi’s legal counsel said the company had been in communication with the Indian government and had not been told to shut down. The company noted that new users would first pass an identity check before trading.
However, the situation regarding Polymarket is different, as the platform operates on cryptocurrency rails. The Economic Times report said Polymarket does not include India on its list of restricted countries. A company spokesperson said Polymarket maintains geoblocking measures in jurisdictions where its services are not permitted.
Cricket Shows the Demand Problem
The enforcement issue becomes more pressing, as prediction markets are linked to events that Indians follow closely. A cricket game, for example, between Lucknow Super Giants and Royal Challengers Bengaluru on May 7 garnered $27.7 million worth of trades via Kalshi and Polymarket, the Economic Times said. While the report did not specify how much of that volume came from Indian users, the scale helps explain why sports contracts are being scrutinized in the country.
Stablecoins Could Draw the Next Push
Payment routes could become the most realistic pressure point. MeitY said certain users were converting Indian rupees into virtual digital assets like USDC, among others, to be able to join in on the banned platforms. Hindustan Times also reported that the ministry warned VPN services about their exposure to safe-harbour liabilities if they fail to meet due diligence duties.
This makes the issue more complicated than simply blocking particular websites. An offshore platform can exist outside of India’s jurisdiction. Users can attempt to mask their location through VPNs or DNS workarounds. The use of stablecoins, in turn, can weaken domestic payment controls.
What Comes Next
India has already moved from lawmaking to enforcement. The open question is whether the country can close the access gap without creating a wider conflict over VPN use, crypto payments, and cross-border event contracts. For prediction market firms, India is a reminder that access in one market does not create legal certainty in another.
