India’s IT Ministry Moves to Block US Prediction Platforms Kalshi and Polymarket

India Intensifies Crackdown on Offshore Prediction Markets

The Indian Ministry of Electronics and Information Technology (MeitY) is poised to formally block US-based prediction market platform Kalshi as early as May 22, signaling a significant escalation in its regulatory efforts against online betting. This move follows an ongoing process to issue a similar ban order against another prominent US platform, Polymarket, reinforcing India’s firm stance against platforms operating outside its legal framework. These actions underscore the government’s resolve to enforce its prohibition on online real-money gaming and prediction markets that facilitate betting on future outcomes, particularly those that have continued to operate in India through circumventing measures such as mirror sites.

A MeitY official confirmed that orders have already been issued to enforce the ban on Kalshi for operating illegally within the country. The official stated, “We have already issued a blocking order to Polymarket and are in the process of issuing an order to Kalshi as soon as Friday.” This decisive action is being taken under Section 69A of the IT Act, a powerful provision that empowers the Centre to restrict public access to online content deemed to be in violation of Indian laws. The ministry’s consistent efforts highlight a broader strategy to ensure compliance and protect consumers from unregulated online activities.

Regulatory Framework and Enforcement Against Evasion

The formal blocking orders against Kalshi and Polymarket are a direct response to their continued operation in India despite previous warnings and existing bans. Both platforms, headquartered in the United States, allow individuals to place bets on future events, a practice now largely prohibited under India’s evolving online gaming regulations. This latest enforcement comes nearly a month after MeitY issued a comprehensive advisory, directing Virtual Private Network (VPN) service providers and other intermediaries to cease enabling access to blocked online betting and prediction market platforms.

The advisory specifically targeted platforms like Polymarket and Kalshi, which were already banned but continued to serve Indian users via mirror sites. A mirror site, an exact duplicate of an original website hosted on a different server and URL, is a common tactic used to bypass governmental blocking orders. The Indian government views these bypass mechanisms as a direct challenge to its regulatory authority, necessitating stringent measures like formal blocking orders under Section 69A of the IT Act to ensure the efficacy of its digital policy and protect the integrity of its online ecosystem.

The Landscape of Prediction Markets and Legislative Changes

Kalshi and Polymarket represent a segment of the digital economy where users engage in speculative trading on the outcomes of various events, ranging from political elections to economic indicators. Such platforms, by allowing users to collect winnings based on these outcomes, fall squarely within the ambit of India’s recently enacted prohibitions on online real-money gaming. Last year, both houses of the Indian Parliament passed landmark legislation aimed at curbing such activities, which was further solidified with the notification of the Online Gaming Act, 2025, effective May 1.

The regulatory clampdown has not been limited to international platforms. Homegrown Indian applications such as Probo, TradeX, and MPL’s Opinio, which gained considerable traction by offering similar prediction market services, particularly during events like IPL 2024, also ceased their operations following the government’s initial clampdown last year. This demonstrates a consistent and comprehensive approach by Indian authorities to regulate all forms of online real-money gaming and prediction markets, irrespective of their origin, ensuring a level playing field and adherence to national laws.

Financial Compliance and Anti-Money Laundering Norms

A significant challenge posed by platforms like Kalshi and Polymarket, beyond their prediction market offerings, is their crypto-powered operational model. In India, all Virtual Digital Asset (VDA) service providers are mandated to register as “reporting entities” with the Financial Intelligence Unit (FIU) under the Ministry of Finance. This registration is critical for complying with stringent anti-money laundering (AML) norms, a cornerstone of India’s financial regulatory framework aimed at preventing illicit financial flows and terrorist financing.

Without acquiring the requisite licenses and adhering to these AML regulations, VDA service providers are prohibited from operating within the country. The crypto-powered nature of these prediction markets adds another layer of complexity to their legal standing in India, making their continued operation without proper registration a clear violation of financial laws. This aspect underscores the multifaceted regulatory challenges that the Indian government is addressing, encompassing not just gaming but also financial integrity and digital asset oversight.

Wider Implications and Enforcement Directorate Probes

The move against Kalshi and Polymarket is part of a broader, intensified crackdown on the entire real-money gaming (RMG) sector in India, which has seen various enforcement agencies, particularly the Enforcement Directorate (ED), launch extensive probes into platforms suspected of links to illegal betting and money laundering. These investigations highlight the severe legal and financial consequences for entities found to be non-compliant with Indian laws.

Recent high-profile cases illustrate the gravity of these enforcement actions. Earlier this month, the ED arrested three co-founders of gaming platform Gameskraft Technologies and froze assets worth ₹526 crore in connection with an alleged money laundering case. The trio subsequently moved the Karnataka High Court seeking bail. Similarly, earlier this year, WinZO co-founders Paavan Nanda and Saumya Singh Rathore were arrested by the ED on money laundering charges under the Prevention of Money Laundering Act (PMLA), following raids and the seizure of assets totaling ₹690 crore, though they were later granted bail. These cases collectively signal the government’s unwavering commitment to sanitizing the online gaming and prediction market landscape.

Outlook on India’s Regulated Digital Economy

The decisive actions taken by the MeitY against Kalshi and Polymarket, alongside the ongoing probes by the ED into prominent domestic RMG operators, firmly establish India’s resolve to cultivate a regulated and compliant digital economy. The consistent application of laws, from the IT Act to the Online Gaming Act and PMLA, underscores a comprehensive strategy to manage the rapidly evolving online landscape. This approach aims to safeguard national interests, protect consumers, and ensure that all digital platforms operating within India adhere strictly to the established legal and financial frameworks.

The regulatory environment for online gaming and prediction markets in India is undergoing a significant transformation, demanding heightened vigilance and adherence from both domestic and international operators. As the government continues to refine its policies and enhance enforcement mechanisms, the emphasis remains on fostering a secure and legally compliant digital ecosystem, thereby setting a precedent for responsible operation within the country’s vibrant, yet increasingly regulated, online sphere.