Australia: Polymarket blocked as illegal gambling
After a thorough investigation, the regulator ACMA determined that these platforms are not financial trading tools, but binary bets. Polymarket has been included on the blacklist of prohibited sites for operating without a license and allowing restricted "live" betting.
The Australian Communications and Media Authority (ACMA) has dealt a decisive blow to one of the fastest-growing sectors in the digital environment. After concluding an investigation into Polymarket, the regulator determined that prediction markets constitute illegal gambling activity and not a financial trading service, as they had intended to position themselves.
This ruling establishes that, by offering bets on binary outcomes, these platforms fall directly under the jurisdiction of gambling laws and cannot legally operate in the country without the corresponding license.
Neither investment nor derivatives: Pure betting
ACMA’s analysis of Polymarket’s structure was unequivocal: the platform does not meet the criteria of financial products under Australian corporate law. According to the regulator, the site lacks:
- Real investment mechanisms.
- Financial risk management structures.
- Qualified payment frameworks associated with financial derivatives.
Instead, the authorities determined that users simply risked money on specific outcomes hoping for a profit, which fits the technical definition of betting. Lacking an interactive gambling license, Polymarket has been added to the official blacklist of prohibited sites, forcing internet providers to block access throughout Australian territory.
A security gap and live betting
The investigation revealed a critical vulnerability in the platform’s controls. ACMA staff were able to create accounts, fund them, and place bets explicitly indicating they were located in Australia. Data cited by the regulator shows the magnitude of the reach: nearly 1.9 million visits from Australian users over a six-month period during 2024.
Furthermore, the regulator expressed concern over the fact that Polymarket allowed "in-play" (live) bets on sporting events, a modality that is strictly restricted even for licensed operators in Australia.
Consequences for the sector
Although Polymarket’s operator, Adventure One QSS Inc., did not initially respond to the preliminary findings, the platform introduced restrictions for Australian users following the official block. For regulators, this move constitutes an implicit acknowledgment of the failure.
This decision sets an important precedent for other prediction markets seeking to operate globally under the "fintech" label, making it clear that, at least in Australia, the content of the activity takes precedence over the technological format.
Tags: Australia, Polymarket, Polymarket Australia block