Hot on the heels of a valuation around $5 billion, Kalshi is expanding into over 140 countries as it seeks to harness new markets, with China and India highlighted as primary targets—even in the face of tough gambling regulations that have caused some businesses to retreat or abandon those markets altogether.

The prediction market platform, based in the United States, previously operated solely within its domestic market. While a complete list of target countries is yet to be disclosed, Kalshi confirmed via an email to Sportico on Monday that China and India are included in its global expansion strategy.

Challenges in China and India

Together, China and India comprise around 35% of the global population—roughly 17% in China and 18% in India—which makes them enticing markets for international tech and betting companies. However, both countries uphold regulations that have historically posed challenges for digital operators worldwide.

China imposes strict internet censorship and has banned major U.S. platforms like Google Search, Facebook, Instagram, and Reddit. Furthermore, it restricts foreign investment and outlaws most gambling activities, except for state-run lotteries. These regulations could hinder Kalshi’s operational model significantly.

India has also adopted more stringent measures against online gambling. In August, the Indian Parliament enacted the Promotion and Regulation of Online Gaming Bill, effectively prohibiting nearly all online betting. Technology Minister Ashwini Vaishnaw described the law as a protective step for citizens against online betting and gambling, which he claims often misleads users with unrealistic profit promises.

Industry Reactions to India’s Online Gaming Legislation

In response to the bill’s passage and subsequent presidential approval, Flutter Entertainment ceased paid competitions on Junglee, a skill-based gaming platform it acquired to penetrate the Indian market. Flutter, which owns FanDuel, projected that its operations in India would generate approximately $200 million in revenue this year, demonstrating the region’s significant financial potential.

Another operator in India, Probo, halted all real-money activities following the ban’s implementation. The prediction market startup had previously encountered legal hurdles comparable to those faced by Kalshi in the U.S., where the debate continues over whether prediction markets should be classified as gambling or financial trading.

India’s new law carries criminal implications, including possible imprisonment for anyone involved in facilitating, promoting, or funding online gaming for monetary gain. Prior to the law’s adoption, the prediction market platform Polymarket had already restricted access for Indian users, although some managed to circumvent these restrictions through VPNs.

Users in India have recently reported challenges in creating accounts on Kalshi, indicating that access may remain limited despite the company’s ambitions for global reach.

Kalshi’s success in navigating operations in China and India could significantly influence its revenue growth trajectory following its recent valuation. Both countries present large potential user bases but are subject to considerable regulatory scrutiny concerning online gaming and prediction markets.