Australian regulator classifies prediction markets as illegal gambling in probe into Polymarket

The ACMA’s investigation concluded that prediction markets do not qualify as financial trading tools.

Australia.-  The Australian Communications and Media Authority (ACMA) has concluded that prediction market platforms constitute illegal gambling rather than financial trading tools in a move that could have big implications for the rapidly expanding sector. The regulator concluded that the platforms fall under gambling laws and cannot legally operate without a licence.

It specifically looked at Polymarket and concluded that the operator’s structure did not meet the criteria for financial products under Australian corporate law. The regulator found that the platform lacked investment mechanisms, risk management structures and qualifying payment frameworks typically associated with financial derivatives. Instead, users were staking money on binary outcomes, expecting to profit from correct predictions, it found.

Because Polymarket positioned itself as a financial service, it never applied for an Australian gambling license, placing it in breach of the country’s Interactive Gambling Act. The regulator subsequently added the platform to Australia’s blacklist of prohibited gambling websites, requiring internet service providers to block access.

The investigation revealed that Australian users were able to access the platform with minimal restrictions. ACMA staff reportedly created accounts, funded them and placed wagers while indicating they were located in Australia. Data cited by regulators showed nearly 1.9m visits to the platform from Australian users over a six-month period in 2024.

Authorities raised concerns that Polymarket offered in-play betting on live sporting events, a form of wagering that is restricted even for licensed Australian operators. Polymarket’s operator, Adventure One QSS Inc., was notified of ACMA’s preliminary findings but did not respond before the investigation concluded. The platform later introduced measures to restrict Australian users after being blocked, a move regulators interpreted as an acknowledgement of the ruling.

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The ACMA’s investigation concluded that prediction markets do not qualify as financial trading tools. Australia.-  The Australian Communications and Media Authority (ACMA) has concluded that prediction market platforms constitute illegal gambling rather than financial trading tools in a move that could have big implications for the rapidly expanding sector. The regulator concluded that the platforms…