India Warns Polymarket, Kalshi Are Illegal, Flags Stablecoin Payments
Summary
- India has warned that Polymarket and Kalshi are illegal online betting platforms and is effectively treating them as banned.
- The two platforms said they have not received a direct request from the Indian government to halt service and are still allowing existing trading and new user sign-ups.
- India has flagged dollar-based stablecoin payment structures as a source of regulatory evasion and financial risk, stepping up scrutiny of the online betting market.
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Polymarket and Kalshi are continuing to allow trading by users in India even after the government warned that the platforms are illegal. Indian authorities have also raised concerns about online betting structures that use stablecoins.
Bloomberg reported on May 18 that India’s Ministry of Electronics and Information Technology sent letters to VPN service providers last month warning that users were still accessing “illegal and blocked prediction market and online betting platforms.” The notice explicitly mentioned Polymarket and similar platforms.
India is effectively treating prediction-market platforms as banned under the Online Gaming Regulation Act, or PROGA, which took effect on May 1. Jay Sayta, an India-based technology and gaming lawyer, told Bloomberg that Polymarket and Kalshi “clearly fall within the category of online money games.” He added that they are now subject to a broad ban in India.
Kalshi said it has not received a direct request from the Indian government to suspend its service. Valeria Buterakova, the company’s legal counsel, said Kalshi would comply if such a request is made, but it is still accepting new users. Polymarket said it continues to update access restrictions to comply with the laws and regulations of each jurisdiction.
Bloomberg said betting volumes tied to Indian Premier League cricket matches have surged recently. A May 7 game between the Lucknow Super Giants and Royal Challengers Bengaluru generated a combined $27.7 million in trading on Kalshi and Polymarket.
The Indian government is particularly concerned about payment structures using dollar-based stablecoins. The ministry said such transactions raise concerns about illegal online betting, regulatory evasion, financial risks and harm to public order.
Global prediction-market platforms are rapidly expanding as they push against regulatory boundaries across jurisdictions. At the same time, the spread of stablecoin-based payment infrastructure into online betting is drawing tighter scrutiny from regulators.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
