India Blocks Polymarket Access, Kalshi May Face Curbs Next

India has blocked local access to prediction-market platform Polymarket as the government steps up regulation of the sector. Kalshi, a US-regulated platform, could also be targeted in a further blocking order.

Indian users currently cannot access Polymarket's website, CoinDesk reported on May 22. The move came after the Ministry of Electronics and Information Technology directed internet service providers to block certain online betting platforms.

On April 25, the Indian government sent a notice to VPN providers warning that local users were continuing to access banned prediction-market and online betting platforms.

Citing local media, CoinDesk reported that Indian authorities had already issued an order to block Polymarket. The government could issue an additional blocking order against Kalshi, which is regulated by the US Commodity Futures Trading Commission, as early as May 23, the report said.

Prediction-market platforms allow users to wager real money on the outcome of events such as elections, financial markets and political developments. The sector grew rapidly during the 2024 US presidential election and drew interest from investors globally.

India classifies those services as online money gaming. Under the country's online gaming law, such activity is fully banned.

The move also fits India's broader hard-line stance on crypto, according to market observers. The country imposes a flat 30% tax on crypto gains and a 1% tax deducted at source, or TDS, on all transactions.

India is also tightening anti-money laundering and counter-terrorist financing rules centered on the Financial Intelligence Unit. Some local crypto startups have relocated to more favorable jurisdictions including Dubai and Singapore.

Separately, India's parliamentary finance committee held a meeting on May 20 with major exchanges including Binance, WazirX and ZebPay to discuss crypto regulation and taxation, CoinDesk reported.