India has blocked access to the US-based prediction market Polymarket and is preparing to do the same for its competitor Kalshi, escalating a crackdown on platforms the government defines as illegal online gaming. The websites are already inaccessible for many users in the country.
The move comes from India's Ministry of Electronics and Information Technology (MeitY), which will issue the formal blocking order under Section 69A of the Information Technology Act, a senior government official told The Print. The ministry has already issued a blocking order for Polymarket, with Kalshi's expected by Friday.
The regulatory action enforces the Promotion and Regulation of Online Gaming Act, 2025 (PROGA), which took effect May 1. The law prohibits real-money online gaming, a category under which the government classifies prediction markets. One cricket match on May 7 reportedly saw trading volume of around $27.7 million across both platforms, highlighting the scale of activity authorities are targeting.
This ban is the latest step in India's broader, risk-averse approach to digital assets, which prioritizes capital control and financial stability over industry growth. The government has already implemented a "shadow ban" on the crypto sector through punitive taxes, including a 30 percent flat tax on gains and a 1 percent tax deducted at source (TDS) on all transactions, which has severely curtailed domestic trading volumes.
PROGA Reshapes India's Online Gaming Landscape
The implementation of PROGA has forced a significant restructuring of India's online gaming and betting industry. Several domestic operators have already exited the market. Notably, Indian opinion trading platform Probo shut down its services following the rollout of the new law.
The government's stated concerns include addiction, financial losses, and the potential for money laundering through these platforms. In an advisory issued on April 25, MeitY warned VPN service providers that users were accessing "illegal and blocked prediction market and online betting platforms" despite domestic prohibitions, signaling a wider effort to close access loopholes.
Polymarket, which does not list India as a restricted country, stated it was "committed to complying with applicable laws." Kalshi’s legal counsel, Valeria Vouterakou, told Bloomberg the firm would "comply with the government’s requests should they make them."
This article is for informational purposes only and does not constitute investment advice.
