MeitY examines action against Kalshi, Polymarket amid rise in election and sports prediction betting

Government says offshore prediction platforms face restrictions under online gaming rules; VPN use complicates enforcement.

The Ministry of Electronics and Information Technology (MeitY) is evaluating potential regulatory action against offshore prediction market platforms such as Kalshi and Polymarket, following a rise in their use for speculative betting on events including elections and sporting tournaments like the Indian Premier League.

Speaking on April 22, IT Secretary S. Krishnan said the government has been monitoring instances of Indian users accessing such platforms despite existing restrictions. He noted that action has been taken whenever specific reports have been brought to the ministry's attention.

According to officials, platforms like Kalshi and Polymarket are considered to fall within the scope of India's online gaming and betting restrictions under the current legal framework. The IT ministry also notified the rules under the Online Gaming Act on April 22, reinforcing the regulatory stance.

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However, enforcement continues to face operational challenges. Users are reportedly accessing these platforms through virtual private networks (VPNs), making direct blocking and monitoring difficult. Krishnan acknowledged this complexity, stating that while VPNs themselves are not illegal, their use in bypassing restrictions poses regulatory concerns.

He described the situation as a "whack-a-mole" problem, with restricted platforms resurfacing through mirror websites, alternate domains, and encrypted access routes even after enforcement action.

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The renewed scrutiny comes as prediction markets gain traction among Indian users, particularly for high-engagement events such as elections and major sports fixtures, raising concerns around speculative betting activity operating outside domestic regulatory oversight.