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Govt Mulls Crackdown On Polymarket, Kalshi, Other Prediction Market Apps As Election Betting Spikes

Platforms such as Kalshi, Polymarket are used for betting on election outcomes, IPL and many other events.

Govt Mulls Crackdown On Polymarket, Kalshi, Other Prediction Market Apps As Election Betting Spikes
Image: Freepik

Prediction market apps such as Kalshi, Polymarket have come under the lens of Ministry of Electronics and Information Technology of India's scanner, secretary S. Krishnan told reporters on Wednesday. 

Platforms such as Kalshi, Polymarket are used for betting on election outcomes, IPL and many other events, and MeitY is currently mulling action against these apps.

MeitY's statement comes amid spikes in election bettings on online platforms, as Indian states of Tamil Nadu and West Bengal head to polls on Thursday. 

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The secretary added that the government has taken action whenever such reports have come to the ministry.

ALSO READ: From Rummy Culture To Dream11: List Of Top Apps That Halted Real-Money Games After Online Gaming Act

Further, he pointed out that even though apps such as Kalshi, Polymarket are banned under the Online Gaming Act, users continue to access them via virtual private networks or VPNs. 

"Access through VPNs is a slightly tricky issue, seeing how we can intervene," S. Krishnan said.

The secretary expanded on the same and said that VPNs have several legitimate uses as well, therefore how to distinguish between legit and illegitimate is an ongoing exercise. 

"It's a bit of a whack-a-mole situation," the secy remarked. 

Moreover he said that payment channels, specialised wallets involved in these transactions should be compliant with Indian laws. 

He also underscored that if foreign platforms are offering services in India and it is brought to the ministry's notice, action can be taken as the Onine Gaming Act has extra territorial jurisdiction. Such platforms can be blocked under Section 69A of the Information Technology (IT) Act, 2000. 

ALSO READ: Govt Notifies Online Gaming Act Rules, Rollout From May 1; Social Games Registration Now Voluntary

Online Gaming Act Rules To Take Effect From May 1 Onwards

The government has notified rules under the Promotion and Regulation of Online Gaming Act, 2025, with implementation set to begin from May 1, marking the operational rollout of a formal regulatory framework for the sector.

A key feature of the rules is that registration for online social games has been made voluntary. Such games can operate without prior determination or registration with the proposed regulator, the Online Gaming Authority of India (OGAI). However, the authority will have powers to step in and review any game on its own.

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