(AsiaGameHub) –   India’s government has issued a warning that prediction market platforms like Polymarket are targeting players, even as a ban on online real money games (RMG) is being rolled out.

In a notice from the Ministry of Electronics and Information Technology (MeitY), it was stated that players are evading restrictions by using virtual private networks (VPNs) and converting Indian rupees into stablecoins such as USD Coin to facilitate transactions.

The statement noted: “This raises serious concerns regarding illegal online betting, bypassing of regulatory systems, possible financial risks, and dangers to public order and economic stability.”

Similar to many countries worldwide, India has explicitly banned prediction market platforms—here, under Section 69A of India’s IT Act.

Prediction markets aren’t the only gambling-related products to be banned; a prohibition on online gaming was introduced in August 2025 following the passage of the Promotion and Regulation of Online Gaming Rules Act (PROG Act).

MeitY reminded intermediaries like VPN providers of their obligations under India’s IT Act and IT rules to ensure their services are not used to access websites prohibited by Indian law.

The Ministry stated: “Given the gravity of the situation, MeitY hereby reiterates with increased emphasis that all VPN service providers and other intermediaries must make reasonable efforts to avoid hosting, storing, or allowing access to any such platforms offering unlawful information—including ‘Polymarket’ and other similar non-compliant platforms operating in violation of the law.”

MeitY is responsible for overseeing the implementation of the PROG Act, and enforcement of the online gaming ban began on May 1. Under the legislation, all apps, devices, and services involving real-money gaming mechanisms and transactions are prohibited.

Those found violating the laws by promoting or advertising such services can face penalties of up to three years’ imprisonment and fines of up to ₹1 crore (€82,469).

MeitY added that any VPN provider failing to fulfill its duty of conducting necessary due diligence to prevent access to gambling platforms could face legal action and would not be protected by sections of India’s IT rules that grant exemptions for third-party links or data shared via their services.

As of the time of writing, India is not among the 33 countries listed as completely restricted from accessing Polymarket on the platform’s website. However, Polymarket does warn users that using a VPN to access its platforms in these restricted countries violates its terms of service.