India is weighing further enforcement action against prediction market platforms, even as it prepares to roll out a comprehensive regulatory framework for online gaming from May 1st.
IT Secretary S. Krishnan said platforms such as Kalshi and Polymarket have come under increased scrutiny, particularly as they are being used to facilitate betting on election outcomes, Indian Premier League matches and other real-world events. Despite being prohibited under the country’s Online Gaming Act, Krishnan acknowledged that users continue to access such services through virtual private networks, creating enforcement challenges for authorities.
“Access through VPNs is a slightly tricky issue and we are seeing how we can intervene,” Krishnan said, noting that VPN usage presents a “whack-a-mole situation” given their legitimate applications alongside illicit circumvention of restrictions. He added that the government is examining ways to distinguish between legitimate and illegitimate VPN usage, though no clear solution has yet emerged.
Krishnan also emphasized that offshore operators targeting Indian users remain within the reach of enforcement action. Under the Online Gaming Act’s extra-territorial provisions, foreign platforms offering services in India can be blocked, including through Section 69A of the Information Technology Act, 2000. The comments come as India moves to implement the Promotion and Regulation of Online Gaming (PROG) Act, 2025, alongside its accompanying rules, which were finalized following inter-ministerial consultations and legal review.
The new framework reflects a dual policy objective: protecting consumers, particularly minors and vulnerable groups, from financial and psychological harm, while positioning India as a global hub for gaming and digital innovation. Drafted by the Ministry of Electronics and Information Technology, the Promotion and Regulation of Online Gaming Rules, 2026 establish the operational structure for the law, which was passed by Parliament in August 2025.
Central to the framework is the creation of the Online Gaming Authority of India, a digital-first regulator tasked with overseeing classification, compliance, grievance redressal and enforcement across the sector. The rules also introduce a formal classification system to determine whether a product constitutes an online money game, a permissible social game or an e-sport, providing greater regulatory clarity for operators in a market that has expanded rapidly in recent years while attracting growing scrutiny over addictive and monetized gameplay mechanics.
