MeitY Issues Warning to VPN Providers Over Access to Banned Betting Platforms
Published
Key Takeaways
- MeitY VPN advisory warns intermediaries over banned betting access compliance: Government directs VPN providers to block access to banned betting platforms or lose safe harbour
- Circumvention tactics flagged via VPNs and stablecoins used for offshore betting platforms: Users bypass restrictions via VPNs and stablecoins like USD Coin raising financial and regulatory concerns
- Regulatory tightening under PROG Act increases penalties and unified online gaming rules: Non compliance risks loss of safe harbour penalties under IT Act and unified gaming regulation
India’s Ministry of Electronics and Information Technology (MeitY) has issued a fresh advisory aimed at VPN service providers and other intermediaries. The government has asked them to ensure that users are not able to access banned online betting and prediction platforms, including services such as Polymarket. Officials have also warned that failure to act could lead to legal consequences and loss of protection under existing internet laws.
The advisory was released on April 25 and focuses on growing concerns that restricted platforms are still being accessed through workarounds.
VPN Use and Stablecoins Under Government Scrutiny
According to the government, users are increasingly using VPN services to bypass restrictions placed on betting and prediction websites. In some cases, users are also converting Indian rupees into stablecoins such as USD Coin to participate in these platforms.
Authorities believe these methods are being used to continue activities that are otherwise blocked in India. The advisory links such practices to concerns around unlawful betting, financial risk, and potential impact on public order and regulatory systems.
MeitY has stated that such access attempts may fall under Section 69A of the Information Technology Act, which allows the government to block access to certain online content in the interest of national security, sovereignty, and public order.
Legal Responsibility and Risk of Losing Safe Harbour Protection
The ministry has reminded VPN providers and intermediaries of their responsibilities under the Information Technology Act and the IT Rules, 2021. These rules require platforms to exercise due diligence in preventing misuse of their services.
A key warning in the advisory is the potential loss of “safe harbour” protection under Section 79 of the IT Act. This protection generally shields intermediaries from liability for third-party content, provided they follow legal obligations.
If companies fail to comply with the advisory, they could face legal action not only under the IT Act but also under other laws, including the Bharatiya Nyaya Sanhita and provisions linked to the recently introduced Promotion and Regulation of Online Gaming Act, 2025 (PROG Act). The PROG Act places a blanket restriction on real-money online gaming in India.
MeitY has also asked intermediaries to cooperate with government agencies by sharing relevant information when required for investigations, cybersecurity monitoring, and enforcement actions.
Global Crackdown and Enforcement Challenges
India is not alone in taking action against offshore betting and prediction platforms. Similar restrictions on services like Polymarket exist in several countries, including the United States, France, Australia, and parts of Europe.
However, enforcement remains difficult. One major challenge highlighted by officials is that VPN usage itself is not illegal in India. This creates a situation where tools used for privacy and security can also be used to bypass restrictions, making enforcement more complex for regulators.
New Central Framework Under Online Gaming Law
The advisory also comes shortly after the government notified rules under the Promotion and Regulation of Online Gaming Act, 2025. This law introduces a nationwide framework for regulating online gaming and bans all forms of real-money gaming.
A new regulatory body, the Online Gaming Authority of India, is set to begin operations on May 1. It will oversee enforcement, classify online games, and coordinate with law enforcement agencies to address offshore platforms that operate outside Indian regulations.
Legal experts note that the new system replaces earlier state-wise rules with a single central structure. This includes standardized rules for age restrictions, time controls for users, and tighter checks on payment systems used in gaming platforms.
Advocate Shivaarti Bajaj, Managing Partner at RSD Bajaj Global Law, noted that the shift brings a unified legal framework after years of different state-level approaches, creating a more centralized system for regulation and enforcement.
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