Hong Kong warns that using prediction markets could count as illegal gambling

Regulators warn that platforms such as Polymarket and Kalshi fall outside Hong Kong’s legal frameworks.

Hong Kong.- The Investor and Financial Education Council (IFEC), part of Hong Kong’s Securities and Futures Commission, has warned that participating in prediction markets could constitute illegal gambling. It’s also warned that users are not protected under the Securities and Futures Ordinance, leaving limited or possibly no recourse in the event of disputes, account issues, or financial losses.

The council said contracts offered on platforms like Polymarket and Kalshi do not qualify as investment products and have elements commonly associated with gambling. It urged users to distinguish between investment activities and speculative betting, stressing that investment involves underlying assets or economic performance rather than outcome-based predictions.

The warning comes after authorities suspended plans to introduce regulated basketball betting, in Hong Kong over concerns that expanding legal wagering options could inadvertently increase the awareness of prediction markets. Officials said further study was required to assess the implications.

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Regulators warn that platforms such as Polymarket and Kalshi fall outside Hong Kong’s legal frameworks. Hong Kong.- The Investor and Financial Education Council (IFEC), part of Hong Kong’s Securities and Futures Commission, has warned that participating in prediction markets could constitute illegal gambling. It’s also warned that users are not protected under the Securities and…