Indian authorities have warned virtual private network providers against allowing access to prediction market platforms such as Kalshi and Polymarket, as the country intensifies enforcement under its newly implemented online gaming regulations.
According to a recent Bloomberg report, India’s Ministry of Electronics and Information Technology stated that users were continuing to access “illegal and blocked prediction market and online betting platforms” despite the country’s latest restrictions, which officially took effect on May 1, 2026.
In an advisory published online, the ministry specifically referenced Polymarket and similar prediction market services. Authorities also issued a separate warning letter to VPN providers on April 25, cautioning that companies facilitating access to blocked platforms could face “consequential legal action.”
Users Continue Circumventing Platform Restrictions
Although some Indian internet service providers have already restricted access to Polymarket’s website, users reportedly continue bypassing blocks through VPN services and DNS modifications.
On Polymarket’s Discord channels, users have allegedly shared methods for avoiding detection, including switching DNS servers and masking geographic locations. Enforcement remains particularly difficult because Polymarket operates through cryptocurrency infrastructure and does not require traditional identity verification from users.
The crackdown follows the implementation of India’s Promotion and Regulation of Online Gaming Rules (PROGA), passed in August 2025. The law broadly prohibits what regulators define as “online money games,” a category legal experts say clearly includes prediction markets.
Jay Sayta told Bloomberg that platforms such as Kalshi and Polymarket fall directly within the scope of the legislation and are therefore subject to a blanket ban under Indian law.
India’s Gaming Industry Faces Major Disruption
The new framework has already significantly impacted India’s domestic gaming sector. Major operators including Dream11, Mobile Premier League, WinZO, Zupee, PokerBaazi, and Games24x7 have suspended real-money gaming operations, leading to sharp revenue declines and workforce reductions across the industry.
Meanwhile, the global prediction market sector continues to expand rapidly. Industry data cited in recent reports estimated that Kalshi and Polymarket generated more than $63 billion in trading volume during 2025, with monthly trading peaking at approximately $25.7 billion in early 2026.
Cricket-related contracts have become a major driver of Indian-linked activity. Trading volume surrounding Indian Premier League matches has surged in recent months, with a May 7 fixture between Lucknow Super Giants and Royal Challengers Bengaluru reportedly generating $27.7 million in combined trading volume across Kalshi and Polymarket.
Operators Respond as Regulatory Pressure Builds
Kalshi’s legal counsel, Valeria Vouterakou, stated that the company remains in contact with Indian authorities and has not received formal instructions to stop operations. She added that new customers are still being onboarded through identity verification procedures.
A spokesperson for Polymarket said the platform remains committed to complying with applicable regulations and maintains geoblocking policies where legally required. However, India currently does not appear on the company’s restricted-country list.
Even before PROGA officially came into force, the Securities and Exchange Board of India had warned that “opinion trading” products offered no formal investor protection and operated outside its regulatory oversight.
