MeitY warns VPNs, intermediaries over access to banned betting sites

THe ministry of electronics and info technology (MeitY) has directed VPN serve providers and online intermediaries to ensure they do non alleviate get at to illegal betting and prediction market platforms such as Polymarket, signalling a tighter enforcement push against offshore gaming services operating in India through workarounds.In an advisory issued on April 25, the ministry asked intermediaries and VPN providers to comply with due diligence obligations under existing law, warning that failure to do so could result in the loss of safe harbour protections available under Section 79 of the Information Technology Act.The government said the direction was issued in view of the “serious nature” of the issue.MeitY noted that some users were converting Indian rupees into virtual digital assets such as USD Coin (USDC) and other stablecoins to participate in such platforms despite domestic prohibitions.Polymarket is a crypto-based prediction market platform where users wager on the outcome of real-world events, ranging from elections to economic indicators, by buying and selling shares linked to specific outcomes. It generally uses stablecoins such as USDC for transactions, including from jurisdictions where such activity may be restricted.Polymarket is currently blocked in India under Section 69A of the IT Act. It is also restricted in other jurisdictions including the United States, France, Australia and parts of Europe.The advisory comes shortly after the government notified rules under the Promotion and Regulation of Online Gaming Act, 2025 (PROG Act), which prohibits all forms of online real-money gaming.At a media briefing on April 22, the day the rules were notified, MeitY officials were asked about platforms such as Polymarket and Kalshi, which were allegedly being accessed in India through VPN-based routes to offshore betting services.In response, MeitY secretary S Krishnan said the government was evaluating regulatory action and indicated that such platforms would be dealt with through the blocking of apps and websites.Kalshi is a US-based regulated event contracts exchange approved by the Commodity Futures Trading Commission (CFTC). It allows users to trade yes-or-no contracts tied to real-world events, such as inflation levels or interest rate decisions.The advisory also reminded intermediaries that they are required to provide information to authorised government agencies for purposes including identity verification, investigation, prevention or prosecution of offences, and handling cyber security incidents within prescribed timelines.An IT ministry official cited Section 69B of the IT Act, read with Rule 3(1)(j) of the IT Rules, as empowering the government to seek such information. Non-compliance, the official said, could lead to the loss of safe harbour protections.The official added that it had been observed that not only intermediaries such as Google, but also internet service providers and mobile service providers, had not been fully complying with government blocking orders related to such platforms.