Centre mulls crackdown on prediction market apps
New Delhi, April 22
IT Secretary S. Krishnan said on Wednesday that prediction market apps have come under the scanner of the government, as the country announced to bring into force a comprehensive set of rules to regulate the fast-growing online gaming sector from May 1.
Platforms such as Kalshi, Polymarket are being used for betting on election outcomes, IPL and many other events.
Krishnan pointed out that even though apps such as Kalshi, Polymarket are banned under the Online Gaming Act, users continue to access them via virtual private networks or VPNs.
"Access through VPNs is a slightly tricky issue and we are seeing how we can intervene," S. Krishnan told reporters.
The IT Secretary said that VPNs have several legitimate uses as well, therefore how to distinguish between legit and illegitimate is an ongoing exercise. "It's a bit of a whack-a-mole situation," he remarked.
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 Online Gaming Act has extra territorial jurisdiction.
Such platforms can be blocked under Section 69A of the Information Technology (IT) Act, 2000.
Meanwhile, the new framework, notified under the Promotion and Regulation of Online Gaming (PROG) Act, 2025, reflects the Centre's dual objective of protecting users -- especially children and vulnerable groups -- from financial and psychological harm, while positioning the country as a global hub for gaming and digital creativity.
Framed by the Ministry of Electronics and Information Technology (MeitY), the Promotion and Regulation of Online Gaming Rules, 2026 lay down the operational architecture for implementing the parent law, which was enacted by the Parliament in August 2025. The rules were finalised after extensive inter-ministerial consultations and legal vetting, signalling the government's intent to bring clarity and regulatory certainty to an industry that has seen rapid growth alongside rising concerns over addictive and predatory money-based gaming platforms.
At the heart of the new framework is the establishment of the Online Gaming Authority of India, a digital-first regulator that will oversee classification, compliance, grievance redressal and enforcement.
The rules introduce a structured mechanism to determine whether a game qualifies as an online money game, a permissible online social game or an e-sport.
— IANS
Reader Comments
Good move, but the VPN issue is real. Tech-savvy users will always find a way. Instead of just blocking, maybe we need better financial literacy campaigns to tell people why these prediction markets are harmful. Just my two paise.
Finally some clarity! The Online Gaming Authority sounds promising. The industry has been like the wild west. Regulation will help legitimate Indian gaming startups flourish and create jobs. Hope the enforcement is strong.
Respectfully, I think the focus is a bit misplaced. VPNs have legitimate uses for privacy and work. Cracking down on them to stop a few betting apps feels like using a hammer to kill a mosquito. The solution should be more nuanced.
IPL season is here and these apps thrive. Glad the government is acting. Youngsters get addicted to these prediction games and lose hard-earned money. Parents need to be aware too. #ResponsibleGaming
Extra territorial jurisdiction is key! Foreign platforms can't just operate here without following our laws. The PROG Act seems well thought out after consultations. Hope the new Authority works with speed and transparency.
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.