India has taken strong action against prediction market platforms Polymarket and Kalshi, which are domiciled in the United States, by directing internet service providers to prohibit access nationally in accordance with the Information Technology Act. The move coincides with growing criticism of real-money prediction markets, which allow users to wager on a wide range of events, including elections and sporting events such as the wildly successful Indian Premier League.

According to reports, the Ministry of Electronics and Information Technology (MeitY) blocked Polymarket, and Kalshi is soon to face a similar decision. The action represents India's most severe crackdown to date on foreign prediction market operators that target Indian consumers.

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Why India Blocked Polymarket & Kalshi?

Prediction markets are operating more like unregulated gambling platforms than financial goods, which is the main worry of the authorities. According to Indian officials, these apps fall under gambling restrictions rather than fintech innovation as they allow users to wager real money on unpredictable outcomes.

The intense betting activity associated with IPL matches is very concerning to officials. According to reports, a single IPL match brought in around $27.7 million in prediction market volume, demonstrating the extent of Indian users' involvement. Regulators worry that these platforms continue to draw millions of bets while circumventing India's current gaming and betting regulations.

Platforms that offer real-money bets on uncertain events may be subject to regulatory restrictions under India's online gaming framework if they are not authorised or registered locally. Authorities contend that Polymarket and Kalshi are exempt from India's consumer protection laws and regulatory monitoring because they conduct business offshore.

Concerns about financial fraud, money laundering hazards, gambling addiction, and the lack of accountability for user losses have all been mentioned by the authorities. Officials contend that these sites, particularly for younger users who enter speculative markets through sports and political contracts, blur the distinction between investing and betting.