Kalshi, a prediction markets platform, has quietly withdrawn its services from India as part of a broader strategy to comply with increasing regulatory scrutiny on such platforms. The company has modified its member agreement, effective June 17, to prohibit users located in India from engaging in event contract trading.
This decision marks a significant shift from Kalshi's ambitious international expansion plans announced in October 2025, which included targeting users in over 140 countries, India being one of them. With this latest move, the number of jurisdictions where Kalshi restricts access has risen to 55.
Kalshi has aimed to establish itself as a compliant operator in a largely unregulated industry. However, the company's U.S. federal CFTC license does not shield it from the legal frameworks imposed by other nations.
The amendment to the member agreement categorizes India as a restricted jurisdiction, effectively barring any users who are based there from accessing the platform. This change allows Kalshi to adjust its list of restricted areas in response to evolving legal and regulatory landscapes.
Interestingly, Kalshi had continued to onboard Indian users until mid-May, with legal representatives indicating that the company had not received any directives from the Indian government to cease operations. However, the situation quickly changed as the enforcement of new regulations became apparent.
The shift in India’s regulatory environment can be attributed to the Promotion and Regulation of Online Gaming Act 2025, which came into effect on May 1. This legislation significantly broadened the restrictions on online gambling, with legal experts suggesting that prediction markets fall under its purview.
Violations of this statute carry severe penalties, including potential imprisonment for those who facilitate or promote illegal online gambling activities. The Indian Ministry of Electronics and Information Technology (MeitY) issued a warning on April 25, advising VPN providers and other intermediaries against enabling access to blocked prediction market sites.
As a result, Polymarket was the first to be affected, with its operations blocked around May 21. Kalshi's withdrawal followed shortly thereafter, marking a stark contrast to its earlier expansion announcements.
Other gambling operators are also feeling the impact, with Flutter Entertainment halting all paid contests in its skill gaming subsidiary, Junglee, which was projected to generate approximately $200 million in revenue for 2026.
Meanwhile, the regulatory landscape is shifting in Europe as well, with gambling regulators from nine countries signing a joint declaration on June 17 to combat prediction markets operating without local licenses. This coordinated effort represents a significant step in addressing concerns about the lack of account restriction tools and the risks associated with insider trading, particularly during high-profile events like the FIFA World Cup.