India cracks down on prediction markets: Polymarket goes dark, Kalshi could be next
India's Ministry of Electronics and Information Technology has blocked Polymarket, the world's largest decentralized prediction market, citing prohibition under the 2025 Online Gaming Act. Kalshi faces similar blocking orders. Indian authorities classify prediction markets as illegal online money gaming, continuing the government's restrictive crypto stance through taxation and regulatory oversight designed to control capital outflows.
Key takeaways
- 1India's Ministry of Electronics and Information Technology blocked Polymarket and plans similar action against Kalshi under the 2025 Online Gaming Act.
- 2Indian authorities classify prediction markets as prohibited online money gaming, not legitimate financial platforms.
- 3India imposes 30% tax on crypto gains and 1% TDS on transactions to control capital outflows and throttle trading volumes.
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Why it matters
India's aggressive ban on prediction markets signals the government's continued restrictive stance on crypto, pushing retail investors and startups toward offshore jurisdictions like Dubai and Singapore. This regulatory stance affects Indian traders' access to global financial hedging tools while the government prioritizes capital control over industry growth.
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