Amid a noticeable rise in online betting activity, the Indian government is evaluating potential action against offshore prediction market platforms such as Kalshi and Polymarket. These platforms are increasingly being used by Indian users to place speculative bets on election outcomes, sports tournaments, and other high-profile events.
The growing popularity of such apps has raised regulatory concerns, particularly as they operate outside India’s legal framework governing online gaming and betting.
The Ministry of Electronics and Information Technology (MeitY) has confirmed that it is actively tracking the use of these platforms within India.
IT Secretary S Krishnan addressed the issue, highlighting that authorities are aware of how Indian users are accessing these services.
As per a news agency report, he said,
“The government has taken action whenever such reports have come to us," adding that these platforms fall foul of India’s online gaming regulations.
Although these apps are not legally permitted, enforcement remains challenging due to their offshore nature and technological workarounds.
One of the biggest hurdles in regulating these platforms is the widespread use of Virtual Private Networks (VPNs), which allow users to bypass geographic restrictions.
Speaking on this issue, S Krishnan acknowledged the difficulty in controlling access via VPNs.
He stated,
“Access through VPNs is a slightly tricky issue, and we are examining how we can intervene."
He further added,
"The problem is that there are many legitimate users of VPNs. How do you distinguish between the legitimate and the illegitimate users? That is the big question."
VPNs are widely used for legitimate purposes such as corporate security, privacy protection, and remote work. This makes it difficult for authorities to impose blanket restrictions without affecting lawful users.
Prediction market platforms have seen rapid global growth, and India has emerged as a significant user base.
Indian users are increasingly engaging with these platforms during major events such as:
These platforms allow users to trade on the probability of outcomes, blurring the line between financial speculation and gambling.
Authorities are concerned that such activities could:
In response to the evolving digital gaming ecosystem, the government has introduced updated regulations under the Promotion and Regulation of Online Gaming Act, 2025.
On Wednesday, the Centre notified the rules under the Act, which will come into force from May 1, 2026.
A notable aspect of the new framework is that:
Despite these reforms, offshore prediction market platforms remain prohibited under current Indian law. However, enforcement continues to be a grey area due to cross-border operations.
Platforms like Kalshi and Polymarket currently fall outside India’s legal gaming ecosystem.
These platforms are considered to be in violation of:
Yet, they remain accessible through VPNs, making regulatory enforcement more complex.
India’s growing concern over prediction market platforms highlights the challenges of regulating digital ecosystems in a globalised internet environment. While the government has made it clear that such platforms violate existing laws, enforcement remains difficult due to technological loopholes like VPNs.
With the Online Gaming Act rules set to take effect from May 1, 2026, authorities are expected to tighten oversight and explore new mechanisms to address offshore betting platforms. However, striking a balance between regulation, user freedom, and technological realities will remain a key challenge.
As online betting and prediction markets continue to evolve, India’s regulatory response in the coming months will play a crucial role in shaping the future of the country’s digital gaming landscape.