Kalshi has added India to its list of restricted jurisdictions following the implementation of the country’s new online gaming regulations.
The decision comes after Indian authorities moved to classify event-based trading platforms as illegal online gambling services under the Promotion and Regulation of Online Gaming Act 2025, which took effect on May 1, 2026.
Kalshi updated its member agreement on June 17, prohibiting users located or domiciled in India from trading event contracts on its platform.
India Tightens Regulation of Online Gaming
The new legislation was introduced to strengthen oversight of India’s rapidly growing digital gaming sector.
Under the law, online platforms offering money-based games linked to uncertain future outcomes are prohibited from operating within the country.
Indian regulators rejected Kalshi’s position that prediction markets function primarily as information exchanges or financial products rather than gambling services.
Government Escalates Enforcement
Regulatory pressure increased after India’s Ministry of Electronics and Information Technology issued a formal notice to Kalshi on April 25 regarding continued access for Indian users.
Authorities later expanded enforcement efforts against offshore prediction market platforms.
Internet service providers were instructed to block access to competing platform Polymarket, while VPN providers were warned against assisting users in bypassing regulatory restrictions.
The measures signaled the government’s intention to enforce the new rules aggressively against overseas operators targeting Indian consumers.
Loss of a Key Growth Market
India represented a significant opportunity for prediction market operators due to its large and digitally active user base.
The market had demonstrated substantial interest in event-based trading, particularly around major sporting events such as cricket.
The restriction removes access to one of the world’s largest online consumer markets, creating a setback for Kalshi’s international expansion strategy.
Global Regulatory Pressure Increases
India joins a growing list of jurisdictions that have imposed restrictions on prediction market platforms.
According to the report, Kalshi now lists 55 restricted jurisdictions globally.
Several countries have taken action against event-based trading platforms during 2026, including Brazil, Spain, Indonesia, Argentina, and Portugal.
Regulators in these markets have generally classified prediction market contracts as gambling products rather than financial instruments.
Ongoing Debate Over Prediction Markets
The restrictions reflect a broader international debate regarding how prediction markets should be regulated.
In the United States, Kalshi operates under the oversight of the Commodity Futures Trading Commission (CFTC) as a designated contract market.
The company argues that contracts tied to economic, political, climate, and geopolitical outcomes serve legitimate forecasting and hedging purposes.
However, regulators in many international markets have taken a different view, arguing that placing money on the outcome of future events constitutes gambling regardless of the underlying subject matter.
Expansion Faces New Challenges
The addition of India to Kalshi’s restricted jurisdictions highlights the increasing regulatory challenges facing prediction market operators worldwide.
While trading volumes across the sector continue to grow, expanding internationally is becoming more difficult as governments adopt stricter approaches to event-based trading products.
The outcome of these regulatory debates is likely to play a significant role in shaping the future development of prediction markets outside the United States.
