The Ministry of Electronics and IT (MeitY) has directed VPN service providers and online brokers to ensure that they do not facilitate access to illegal betting and prediction market platforms like Polymarket, signaling a tougher push against offshore gaming services operating in India through workarounds.
In an advisory issued on April 25, the ministry asked intermediaries and VPN service providers to comply with due diligence obligations under current law, warning that failure to do so could result in losing the safe harbor protection available under Section 79 of the Information Technology Act.
The government said the directive was issued in view of the “seriousness” of the case.
MeitY noted that some users were converting Indian rupees into virtual digital assets such as USD Coin (USDC) and other stablecoins to participate in such platforms despite the local ban.
Polymarket is a cryptocurrency-based prediction market platform where users bet on the outcomes of real-world events, from elections to economic indicators, by buying and selling stocks tied to specific outcomes. They generally use stablecoins such as USDC for transactions, including from jurisdictions where such activity may be restricted.
Polymarket is currently banned in India under Section 69A of the Information Technology Act. It is also restricted in other jurisdictions including the United States, France, Australia and parts of Europe.
The advisory comes shortly after the government notified rules under the Promotion and Regulation of Online Gaming Act 2025 (PROG Act), which bans all forms of real money online gaming.
At a press conference on April 22, the day the rules were notified, MeitY officials were asked about platforms like Polymarket and Kalshi, which were allegedly accessed in India through VPN-based methods for offshore betting services.
In response, MeitY Secretary S. Krishnan, said the government was evaluating the regulatory action and noted that such platforms would be dealt with by blocking apps and websites.
Kalshi is a US-based regulated event contracts exchange authorized by the Commodity Futures Trading Commission (CFTC). It allows users to trade yes or no contracts linked to real-world events, such as inflation levels or interest rate decisions.
The advisory also reminded intermediaries that they must provide information to authorized government agencies for purposes including identity verification, investigation, prevention or prosecution of crimes, and handling of cybersecurity incidents within specified timelines.
An IT Ministry official cited Section 69B of the IT Act, read with Rule 3(1)(j) of the IT Rules, as enabling the government to obtain such information. Failure to comply could result in loss of safe harbor protection, the official said.
The official added that it has been observed that not only intermediaries like Google, but also ISPs and mobile service providers, have not fully complied with the government ban orders related to these platforms.
