Indian government set to block Polymarket, Kalshi to crack down on prediction markets

India’s Ministry of Electronics and Information Technology (MeitY) is preparing to issue a formal blocking order against US-based prediction market platforms Kalshi and Polymarket, effective as early as this week. The move follows India’s new Online Gaming Act 2025 (PROGA), which reclassified online gambling—including prediction markets—as illegal, despite earlier exemptions for skill-based games like rummy and fantasy cricket. Prediction markets like Kalshi and Polymarket allow users to bet on real-world events, from sports outcomes to political developments, with trades often exceeding millions. For example, a single IPL match between Lucknow Super Giants and Royal Challengers Bengaluru on May 7 saw $27.7 million in trading across both platforms. However, the Indian government argues these platforms enable gambling-related harms, including addiction, financial losses, and money laundering. MeitY had previously warned VPN providers in April 2026 that facilitating access to blocked platforms like Polymarket could lead to legal consequences. The upcoming blocking order will likely use Section 69A of the Information Technology Act, the same provision used to ban TikTok, allowing the government to restrict access to websites and apps. Non-compliance could result in fines and imprisonment for intermediaries. Despite the impending ban, both Kalshi and Polymarket remain accessible to Indian users as of now. Kalshi’s legal counsel, Valeria Vouterakou, confirmed compliance with any government requests. The crackdown marks a broader effort to enforce India’s stricter stance on online gambling, following the passage of PROGA, which has already led domestic operators like Dream11 and RummyCircle to exit the market.