According to The Print, on May 22, officials from India’s Ministry of Electronics and Information Technology (MeitY) said that MeitY has officially issued a ban order to Polymarket, and is preparing to issue a similar order to Kalshi as early as Friday. The basis is Section 69A of the Information Technology Act. The relevant orders are directed to internet service providers, requiring them to block access to the above-mentioned websites at the network level; non-compliance faces up to 7 years’ imprisonment and fines.
PROGA’s three-category game framework: prediction markets are classified as online money games
PROGA’s regulatory framework for online games divides games into three categories, forming the legal basis for determining that Kalshi and Polymarket are illegal:
Competitive esports (skill-based organized competitions) are recognized as a legitimate sport; social games (no money inflow or outflow) fall under a compliant category; online money games (any form of real-money online games) are comprehensively banned, including their provision, advertising, and any related financial transactions. A MeitY official confirmed that the government’s classification framework further distinguishes: social games are those with no inflow or outflow of funds; esports or online money games have bidirectional fund flows; even those with no inflow but with outflow of funds also fall under the esports category—prediction markets do not fit any of the above exemptions.
Local platforms that were originally protected under “skill games” (including RummyCircle’s rummy card games, Adda52’s poker games, and Dream11’s fantasy cricket games) are also brought into the prohibited scope after PROGA takes effect; the domestic platform Probo had already stopped operating real-money games.
Quantum Center policy expert Deepro Guha noted that there is almost no room for dispute in the legal characterization of Polymarket and Kalshi: “This is the definition of gambling. Beyond that, there’s nothing else.”
Confirmed legal basis for the ban order: Section 69A vs PROGA
This ban order is confirmed as being issued under Section 69A of the IT Act rather than PROGA itself, and the differences in applicability between the two laws are significant:
PROGA establishes classification standards and behavioral prohibitions for online games, but its direct enforcement mechanism mainly targets domestic platforms; blocking overseas platforms at the network level needs technical enforcement tools under the IT Act. Section 69A of the IT Act authorizes the central government to restrict access to any online content (including websites, apps, and social media accounts). The Indian government’s 2020 block on TikTok and multiple Chinese apps used this provision. After the order is issued, ISPs must implement the blocking at the network level; non-compliance by intermediaries can result in up to 7 years’ imprisonment. On April 25, 2026, MeitY issued a letter to VPN service providers warning that assisting users in accessing blocked platforms may constitute legal liability.
Confirmed global regulatory action timeline
August 2025: PROGA is passed by both houses of the Indian Parliament and approved by the President
September 2025: Polymarket is approved by the CFTC to return to the U.S. market (previously banned for nearly three years)
April 25, 2026: MeitY issues a letter to VPN service providers warning of access blocks to prediction market platforms
Within April 2026: The Brazilian government blocks Kalshi shortly after it announced entering the Brazilian market
May 1, 2026: PROGA and its supporting rules formally take effect
May 22, 2026: MeitY confirms it has issued a ban order to Polymarket, with a ban order to Kalshi issued at the earliest on Friday
FAQ
How is the ban order under India’s IT Act Section 69A enforced at the technical level—can users use VPNs to bypass it?
The Section 69A ban order is issued to ISPs, requiring them to block access at the DNS and IP levels, meaning users cannot directly access the blocked websites without using tools. VPNs can bypass the ISP-level blocking, but MeitY has clearly warned VPN service providers on April 25 that facilitating users’ access to blocked platforms may create legal liability, putting compliance pressure on VPN service providers. Deepro Guha noted that the mirror-site issue is even more severe than VPN use: the blocked platform only needs to change its domain name to come back online within weeks, and this process requires no additional effort from users. The Delhi High Court has attempted to address the issue through a dynamic injunction (one that can continuously add new domains).
What are the differences in compliance status between Polymarket and Kalshi before this ban?
MeitY confirmed that Polymarket has received the ban order; regarding Kalshi, its legal counsel previously said it had not yet received a direct request from the Indian government to stop operations, but it would cooperate once it receives one. Neither platform had listed India in the country list subject to access restrictions, meaning that before the ban order is enforced, Indian users could complete registration and transactions without any additional restrictions. Polymarket’s statement only says it will “update access restrictions to comply with regulations,” but it did not take proactive compliance measures regarding India.
What confirmed impact has PROGA’s implementation had on India’s domestic prediction markets and online skill game industry?
The domestic platform Probo proactively stopped operating real-money games before PROGA took effect. Platforms originally protected by exemptions for “skill games,” such as RummyCircle (rummy cards), Adda52 (poker), and Dream11 (fantasy sports), are also classified as prohibited online money games under the PROGA framework, regardless of whether they are skill-based in nature. For the first time, PROGA established a unified online game regulatory framework for India, while formally recognizing esports as a legitimate sport, providing a clear compliance pathway for esports events.
