Kalshi, Polymarket onboarding Indian users despite ban on online betting
What's the story
Despite India's ban on online betting platforms, Kalshi and Polymarket are still allowing Indian users to sign up and trade on their prediction markets. The Ministry of Electronics and Information Technology (MeitY) had warned last month that these platforms were illegal. The advisory specifically mentioned "Polymarket and a few other similar sites," which should have been blocked by internet service providers (ISPs).
Legal implications
Advisory to VPN providers
The advisory from MeitY was addressed to virtual private network (VPN) providers, who were allegedly being used to bypass the restrictions. The ministry warned these providers that they could face "exposure to consequential legal action" if they continued to facilitate access to these platforms. A new Indian law aimed at curbing online gambling across the country came into effect on May 1.
Ongoing operations
Kalshi's response to MeitY's advisory
In response to MeitY's advisory, Kalshi's legal counsel Valeria Vouterakou said the firm has been in touch with the government and hasn't been asked to shut down. Meanwhile, it continues to onboard new customers who are required to complete identity checks before trading on the platform. A Kalshi spokesperson declined to comment on the technology ministry's advisory or its trading volume from India.
Regulatory adherence
Polymarket's stance on operations in India
Polymarket does not list India as a restricted country and has emphasized its commitment to complying with applicable laws and regulations in all jurisdictions. A company spokesperson said they have geoblocking measures in place to restrict access where services are not allowed. However, the ongoing operations in India show these firms are willing to push local law boundaries as they expand globally and attract customers to this new form of online betting.
Global reach
Kalshi's expansion and regulatory challenges
After raising funds last year, Kalshi announced its expansion from the US to 140 countries, including India. However, there is little legal clarity on the status of event contracts that allow the traders to place yes-or-no bets on various events' outcomes. In Brazil, access to Kalshi was blocked by the government last month shortly after its launch announcement in the country.