- India’s IT Ministry ordered VPN companies to block access to Polymarket
- Authorities claim users are using VPNs to bypass local gambling restrictions.
- Failure to comply could cost VPNs their legal “safe harbor” protections
India’s Ministry of Electronics and Information Technology (MeitY) has issued a new directive requiring virtual private network (VPN) providers to block access to illegal betting and prediction sites, explicitly singling out the controversial Polymarket platform.
Under the Promotion and Regulation of Online Gaming Act of 2025 (PROGA), real money online gaming and prediction markets are prohibited nationwide. However, the government has observed that citizens easily bypass these national restrictions by routing their connections through VPN services.
According to the Indian Express, the notice warns that vendors who fail to act could lose their “safe harbor” protections under Section 79 of the Information Technology Act. This crucial legal shield generally protects technology intermediaries from being held liable for the content their users access or generate.
Polymarket is a decentralized prediction market where users buy and sell contracts linked to real-world events. The nature of the platform has come under scrutiny recently after a US Special Forces soldier won $400,000 betting on the capture of Venezuelan leader Nicolás Maduro, raising concerns about insider trading.
That said, Polymarket already “strictly prohibits the use of VPNs or similar tools to bypass geo-restrictions,” as the company states on its website.
The battle against offshore betting
According to MeitY’s notice, users are circumventing legal restrictions placed on such platforms “by misusing VPN services to access these websites.”
The government noted that simply blocking websites at the ISP level has proven ineffective, stating that banned gambling platforms remain easily accessible via a VPN connection. This, MeitY explains, makes national website blacklists meaningless.
“MeitY hereby reiterates, with greater emphasis, that all VPN service providers and other intermediaries must make reasonable efforts not to host, store or allow access to such platforms that make available illegal information, including ‘Polymarket’ and other similar infringing platforms that operate in violation of the law,” the notice reads.
The government also highlighted that users are carrying out financial transactions by converting Indian rupees into virtual digital assets such as USD Coin (USDC) or other stablecoins, another way that allows citizens to “engage in such platforms despite national bans,” the advisory said.
A “complicated” application problem
Despite the strong regulatory stance, Indian authorities recognize the technical difficulties of imposing a VPN-level block.
IT Secretary S. Krishnan recently admitted to The Indian Express that separating legitimate privacy-focused VPN traffic from illegitimate usage was “complicated” and “an ongoing exercise.”
The Indian government has a history of clashing with privacy tools. Previous regulations have ordered VPNs to block access to websites that illegally expose citizens’ data.
Additionally, many major providers withdrew their physical servers from the country following controversial data retention mandates, a move that led experts to criticize the app in India.
For regular internet users in India, the latest notice reinforces the precarious legal status of privacy tools in the region. While using a VPN remains strictly legal, increasing pressure on providers to monitor user traffic could lead to more friction between the government and global cybersecurity companies.
