In a landmark regulatory shift, Australia’s Communications and Media Authority (ACMA) has formally classified the decentralized prediction platform Polymarket as an unlicensed gambling operation.
The decision effectively shatters the industry’s narrative that such platforms are “financial products” rather than wagering tools.
A Hard Line on “Financial Innovation”
Polymarket has long positioned itself as a derivatives market, a strategy that allowed it to bypass traditional betting regulations in the United States.
However, ACMA’s investigation found no evidence of risk management or investment structures that would qualify the platform as a financial instrument under Australian law. Instead, regulators determined users were simply staking binary bets on future events.
“The investigation concluded that users were simply staking money on binary outcomes, yes or no, with the expectation of profit,” officials noted, leading to the inclusion Polymarket on Australia’s blacklist of over 1,300 illegal sites.
Accessibility and Enforcement
The probe revealed a staggering 1.9 million visits from Australian IP addresses over six months. ACMA staff were able to register and place bets without encountering any location-based blocks. Furthermore, the platform was caught offering prohibited in-play sports betting.
While Polymarket implemented geoblocking after the order, the borderless nature of crypto platforms remains a challenge. This precedent signals a global clash between Australian-style strict regulation and the more permissive US approach, where prediction markets have entered the mainstream.
