Prediction market apps such as Kalshi and Polymarket, which are used for betting on election outcomes, the IPL, and many other events, have come under the scanner of India's Ministry of Electronics and Information Technology (MeitY), which is mulling action. The statement from MeitY comes amid spikes in election betting on online platforms, as the Indian states of Tamil Nadu and West Bengal head to polls today. Although these apps are banned under the Online Gaming Act, users continue to access them via VPNs.
MeitY secretary S. Krishnan told reporters that the government has taken action whenever such reports have reached the ministry.
Speaking about the use of VPNs, the secretary said that these VPNs have several legitimate uses; therefore, distinguishing between legitimate and illegitimate use is an ongoing exercise.
"It's a bit of a whack-a-mole situation," the secretary remarked.
Moreover, he said that payment channels and specialized wallets involved in these transactions must comply with Indian laws.
He also underscored that if foreign platforms are offering services in India and it is brought to the ministry's notice, action can be taken as the Onine Gaming Act has extra territorial jurisdiction. Such platforms can be blocked under Section 69A of the Information Technology (IT) Act, 2000.
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