The Ministry of Electronics and Information Technology of India (MeitY) is assessing regulatory action against offshore prediction market platforms such as Kalshi and Polymarket, following a rise in their use by Indian users for speculative betting. The move comes amid growing concerns over participation in event-based betting linked to elections and major sporting tournaments, including the Indian Premier League.
Rising use triggers scrutiny
According to Storyboard18, officials said the government has been tracking access to these platforms despite existing restrictions on online betting. IT Secretary S. Krishnan confirmed that instances of Indian users engaging with such services have been under review. He stated that action has been taken in cases where specific violations were reported to the ministry.
Prediction markets allow users to place bets on outcomes of real-world events. These include political results, sports matches, and economic indicators. Authorities believe such platforms fall within the scope of India’s existing online gaming and betting restrictions.
Legal framework and fresh rules
The ministry recently notified rules under the Online Gaming Act on April 22. Officials said the rules reinforce the government’s stance on restricting unauthorised betting platforms. Under the current framework, offshore platforms that offer speculative betting services may face regulatory action.
Platforms like Kalshi and Polymarket are being checked for compliance with Indian legislation, according to sources. Enforcement actions may include limiting access and notifying intermediaries that enable user interaction if a violation is discovered.
VPN use complicates enforcement
The usage of virtual private networks presents operational issues for law enforcement. By hiding their location and using virtual private network (VPN) services to access banned websites, users are allegedly getting around limitations.
Officials noted that this makes monitoring and enforcement more complex. Blocking one domain often leads to the emergence of another, limiting the effectiveness of traditional regulatory tools.
Growing popularity of prediction markets
The scrutiny comes at a time when prediction markets are gaining traction among Indian users. High-engagement events such as elections and major sports tournaments have driven participation. The Indian Premier League, in particular, has seen increased interest on such platforms due to its large viewership and frequent matches.
Authorities said that the absence of domestic regulatory oversight on these offshore platforms raises risks. These include a lack of consumer protection, unclear dispute resolution mechanisms, and potential financial exposure for users.
SEBI raises red flag
India’s capital markets regulator, the Securities and Exchange Board of India (SEBI), has also weighed in on opinion trading platforms.
On 29 April 2025, SEBI issued a public advisory stating that these platforms are neither recognised stock exchanges nor registered under securities law. The advisory noted that such contracts may resemble derivatives, which would violate the Securities Contracts (Regulation) Act, 1956.
“Such platforms are liable to face action for violation in that case. Recognised stock exchanges are advised to initiate appropriate action for such violations. Even in this case, none of the investor protection mechanisms will be available,” the regulator said.
The regulator has also clarified that if any instrument traded on such platforms were to qualify as a security under Indian law, operating without registration would attract regulatory action.
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