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Prediction markets have taken the financial and crypto worlds by storm, allowing users to trade on the outcomes of real-world events. At the forefront of this movement is Polymarket, a decentralized platform that has seen explosive growth globally.
But for Indian traders and crypto enthusiasts, a critical question remains: Is Polymarket legal in India? The short answer is no. As of 2026, using Polymarket in India falls on the wrong side of the law. Recent sweeping regulatory changes by the Indian government have actively restricted offshore prediction markets and real-money gaming platforms.
Here is everything you need to know about the legal status of Polymarket in India, the latest 2026 regulations, and the risks involved.
What is Polymarket?
Polymarket is a decentralized prediction market built on the Polygon blockchain. It allows users to buy “Yes” or “No” shares on the outcomes of future events, ranging from political elections and economic policy to pop culture and sports.
- How it works: Users trade using USDC, a stablecoin pegged to the US Dollar.
- The draw: Share prices reflect the real-time probability of an event occurring (e.g., if a “Yes” share costs $0.60, the market implies a 60% chance of that outcome). If you predict correctly, the share pays out $1.00.
While prediction markets are praised for their “wisdom of the crowd” accuracy, regulators worldwide are divided on whether to classify them as financial derivatives or online gambling.
The 2026 Legal Status of Polymarket in India
In India, the legal landscape for prediction markets is clear and restrictive. Polymarket is currently banned and illegal to use for Indian residents.
The shift officially occurred with the passing of the Promotion and Regulation of Online Gaming Act 2025 (PROGA). This landmark legislation created a nationwide prohibition on all online money games and collapsed the traditional judicial distinction between “games of skill” and “games of chance.”
Under PROGA, any online platform where users stake money (or its crypto equivalent) expecting a reward based on a future outcome is strictly prohibited. Consequently, the Ministry of Electronics and Information Technology (MeitY) has officially blocked offshore access to platforms like Polymarket, classifying them as unauthorized gambling networks.
Key Laws Restricting Polymarket in India
Using Polymarket in India doesn’t just violate gaming laws; it crosses into strict financial and anti-money laundering regulations.
1. The PROGA 2025 Ban
PROGA criminalizes platforms that facilitate unauthorized online wagering. Operating, hosting, or even facilitating transactions for such platforms carries severe penalties, including potential fines and imprisonment for operators, and strict fines for participating users.
2. Foreign Exchange Management Act (FEMA) Violations
Polymarket requires users to deposit USDC. Converting Indian Rupees (INR) into stablecoins for the explicit purpose of offshore betting or unapproved derivative trading violates FEMA guidelines. The Reserve Bank of India (RBI) strictly prohibits remitting funds out of India for gambling or unauthorized speculative activities.
3. PMLA and FIU-IND Non-Compliance
The Indian Ministry of Finance requires all entities dealing with Virtual Digital Assets (VDAs) to register with the Financial Intelligence Unit – India (FIU-IND) and comply with strict Know Your Customer (KYC) norms. Polymarket operates as a decentralized entity without FIU-IND registration, making any interaction with its liquidity pools a violation of the Prevention of Money Laundering Act (PMLA).
Can You Use a VPN to Access Polymarket in India?
Many users wonder if they can bypass restrictions using a Virtual Private Network (VPN). Indian Internet Service Providers (ISPs), such as Jio, already actively block the Polymarket domain.
While a VPN might mask your IP address, it does not protect you from legal and financial risks.
- Fund Freezing: If you buy crypto on an FIU-registered Indian exchange and transfer it to an offshore decentralized wallet to use on Polymarket, the transaction can be traced. Exchanges are mandated to flag and freeze accounts engaging with banned offshore gaming smart contracts.
- Cyber Law Violations: Bypassing MeitY’s telecom blocks intentionally violates Indian cyber regulations, adding another layer of legal exposure.
How the Rest of the World is Handling Polymarket?
India is not alone in its strict stance. Polymarket has faced regulatory pushback globally. Authorities in France and Portugal recently banned the platform, classifying it as an unlicensed gambling provider.
Conversely, in the United States, the regulatory environment is shifting. After a historic ban in 2022 by the Commodity Futures Trading Commission (CFTC), Polymarket recently received CFTC approval in late 2025 to operate as a regulated, intermediated trading platform in the US—provided it adheres to strict compliance and oversight rules.
The Final Verdict
For Indian residents, the risk heavily outweighs the reward. The combination of the PROGA 2025 gaming bans, strict FEMA capital controls, and proactive MeitY ISP blocks makes Polymarket a legally hostile environment.
If you are an Indian trader interested in forecasting or crypto, it is highly recommended to stick to FIU-registered crypto exchanges and SEBI-regulated financial instruments to ensure your capital remains safe, compliant, and accessible.
