Indian Government Warns Prediction Market Platforms Amid Regulatory Concerns

Despite warnings from India's Ministry of Electronics and Information Technology on April 25 regarding the illegal operation of prediction market platforms like Polymarket in India, Kalshi and Polymarket continue to accept new user registrations in the country. According to Foresight News, the ministry had instructed internet service providers to block these platforms. Kalshi's legal advisor stated that the company is in communication with the Indian government and has not received any shutdown orders. They will comply if a clear directive is issued. Polymarket mentioned that it is continuously evaluating and updating geoblocking measures across jurisdictions. The Ministry of Electronics and Information Technology has not responded to these developments. Both platforms use stablecoins for user deposits, which has raised concerns among Indian regulators, who view stablecoin payments as a means to circumvent regulations. India implemented the Promotion and Regulation of Online Games (PROGA) on May 1, which bans 'online money games.' While similar domestic platforms have ceased operations, the two U.S.-based prediction market platforms remain active. During this year's IPL season, the volume of bets on the Indian Premier League on Kalshi approached half of the trading volume of U.S. baseball events in some weeks. On May 7, a match between Lucknow Super Giants and Royal Challengers Bangalore attracted a combined trading volume of $27.7 million on Kalshi and Polymarket.