Why US-Based Kalshi Added India to Its Restricted List After Months of Friction

United States-based prediction market platform Kalshi has officially added India to its list of restricted jurisdictions. The platform's decision follows a series of recent regulatory actions by the Indian government aimed at blocking online prediction market websites and warning domestic users against participating in such trading activities.

Platform Imposes Structural Restrictions

According to an updated Kalshi member agreement dated June 17, users domiciled in, organised in, or physically located within India are now prohibited from trading event contracts on the platform. India has been explicitly added to the platform's classified "Restricted Jurisdictions" under its standard trading rules. While the new restriction strictly bans active event contract trading for India-based users, the revised agreement notes that it does not automatically terminate or prohibit users from maintaining standard platform membership or non-trading access, subject to local laws and corporate policies. Telegram Ban Valid, Says Delhi HC; Upholds Centre’s Move Before NEET UG 2026 Re-Exam.

Government Crackdown and ISP Blocking

The policy change follows increased enforcement by the Ministry of Electronics and Information Technology (MeitY) against global prediction market operators. Kalshi’s website has been largely inaccessible across multiple major Indian internet service providers (ISPs) since the last week of May, following reports that federal authorities were preparing to execute domain-level blocks against the platform.

Both Kalshi and its primary competitor, Polymarket, previously faced intense government scrutiny after Indian users continued to access and trade on the services. The government issued public advisories at the time, warning citizens that they were using "illegal and blocked prediction market and online betting platforms."

Background: The 2026 Online Gaming Regime

This regulatory enforcement aligns with India's newly overhauled digital entertainment laws. Parliament passed the Promotion and Regulation of Online Gaming Bill, 2025, which structurally banned all online games involving monetary stakes, while simultaneously creating a distinct regulatory framework to allow esports and non-monetary social games to operate safely. The resulting rules, which officially came into force on May 1, 2026, strictly prohibit online money-based gaming services, related promotional advertisements, and domestic financial transactions linked to such platforms, citing public interest concerns regarding addiction and financial harm.

In a parallel enforcement effort in April, MeitY issued formal warnings to virtual private network (VPN) providers, stating that encrypted routing services were being used to bypass local restrictions on blocked prediction market platforms. The ministry cautioned that service providers actively enabling access to these restricted platforms could face direct legal consequences under domestic cybersecurity regulations.

(The above story first appeared on LatestLY on Jun 25, 2026 03:18 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).