India is considering further enforcement measures against prediction market platforms. At the same time, it prepares to introduce a comprehensive regulatory framework for online gaming set to take effect from May 1. These developments signal a dual-track approach. The government will combine stricter oversight of offshore platforms with the rollout of formalised domestic gaming regulation.
According to IT Secretary S. Krishnan, platforms such as Kalshi and Polymarket are under increasing scrutiny due to their use in facilitating betting on real-world events, including elections and Indian Premier League matches. Although such activity is prohibited under India’s Online Gaming Act, users continue to access these services through virtual private networks. This trend complicates enforcement efforts.
VPN Usage Creates Enforcement Challenges
Krishnan noted that VPN access presents a “whack-a-mole” challenge for regulators, as these tools serve both legitimate privacy purposes and illicit circumvention of restrictions. However, authorities are now exploring potential methods to distinguish between lawful and unlawful VPN usage. No definitive solution has been established yet.
At the same time, the government has reaffirmed that offshore operators targeting Indian users remain subject to enforcement. Under extra-territorial provisions of the Online Gaming Act, platforms offering services to Indian consumers can be blocked. This includes action through Section 69A of the Information Technology Act, 2000.
New Regulatory Framework to Launch in May
The enforcement discussions come ahead of the implementation of the Promotion and Regulation of Online Gaming (PROG) Act, 2025. This roll-out will occur alongside its accompanying rules finalised after inter-ministerial consultations and legal review.
The framework reflects a dual objective: strengthening consumer protection—particularly for minors and vulnerable users—while also supporting India’s ambition to position itself as a global hub for gaming and digital innovation.
Drafted by the Ministry of Electronics and Information Technology, the Promotion and Regulation of Online Gaming Rules, 2026 establish the operational foundation of the law passed in August 2025.
New Regulator and Classification System Introduced
A key feature of the new framework is the creation of the Online Gaming Authority of India, a dedicated digital regulator responsible for oversight, classification, compliance, grievance handling, and enforcement across the sector.
The rules also introduce a formal classification structure to distinguish between online money games, permitted social games, and esports. This aims to provide clearer regulatory boundaries. These boundaries are important in a rapidly expanding industry that has faced growing scrutiny over monetisation practices and potential behavioural risks.
Balancing Enforcement With Industry Development
While the government expects to intensify enforcement against offshore and non-compliant platforms, it maintains that the broader regulatory shift will support sustainable industry growth. The framework reduces ambiguity for operators and strengthens safeguards against financial and psychological harm linked to unregulated gaming activities.
