Overview
- Polymarket, which was hit with an ISP‑level blocking order on May 21, has gone dark for many users in India and returns connection errors when accessed.
- Officials told reporters they will use Section 69A of the Information Technology Act to issue a similar network‑level block for Kalshi as soon as this week.
- The action rests on the Promotion and Regulation of Online Gaming Act 2025, whose rules that took effect on May 1 classify real‑money prediction markets as prohibited online money games.
- Enforcers warn that crypto settlement, stablecoin use and weak AML controls drive the crackdown, while regulators acknowledge mirror sites and VPNs keep blocked platforms reachable.
- The move removes a large source of users and liquidity for prediction markets, pressures platforms to seek country‑by‑country licences or workarounds, and could shape how other countries treat crypto‑linked betting services.