ACMA Takes Action Against Polymarket Over Unlicensed Gambling Services in Australia
The Australian Communications and Media Authority (ACMA) has determined that Polymarket, a cryptocurrency-based prediction market platform, is operating in contravention of Australian gambling legislation. The regulator found that Polymarket offers both prohibited interactive gambling services and unlicensed regulated interactive gambling services with an Australian customer link, breaching subsections 15(2A) and 15AA(3) of the Interactive Gambling Act 2001 (IGA). A formal warning was issued to Polymarket on 2 July 2025, with ACMA requesting that Internet Service Providers block access to the Polymarket website.
What ACMA Found: Polymarket's Legal Violations
The ACMA investigation established that Polymarket’s service meets the definition of a gambling service under Australian law. The platform allows users to bet ‘yes’ or ‘no’ on outcomes of events including sporting events, in-play betting, politics, culture, world events, economic indicators, and global elections. The regulator classified these offerings into two categories of breach: wagering services that qualify as regulated interactive gambling services requiring state or territory licensing, and in-play betting services that constitute prohibited interactive gambling services under the IGA. Critically, Polymarket holds no Australian licence to provide these services. The ACMA found the service was provided to customers physically present in Australia, meeting the requirement of having an ‘Australian-customer link’ as defined in section 8 of the IGA. This determination carries significant weight, as it has been an offence since 2001 to provide prohibited interactive gambling services to customers in Australia.
Regulatory Response and Industry Context
Following the formal warning issued on 2 July 2025, ACMA requested that ISPs block access to the Polymarket website as the service continues to contravene the IGA. This action reflects Australia’s strict approach to online gambling regulation. Under Australian law, wagering services offered via the internet—other than in-play betting on sporting events at licensed venues—are classified as regulated interactive gambling services and can only be provided legally by operators holding a licence allocated by an Australian state or territory. The in-play betting component of Polymarket’s service is not an excluded wagering service and therefore constitutes a prohibited interactive gambling service. The ACMA’s enforcement action demonstrates the regulator’s commitment to protecting Australian consumers from unlicensed offshore gambling operators, particularly those utilising cryptocurrency-based platforms that may obscure transaction trails and user identification.
Broader Implications for Prediction Markets in Australia
The ACMA’s determination regarding Polymarket reflects a fundamental challenge facing prediction market platforms globally: the regulatory classification of event contracts. While prediction market operators in the United States—such as Kalshi and the CFTC-licensed version of Polymarket—classify themselves as financial exchanges rather than gambling companies, Australian regulators take a different view. The strict application of Australian gambling law means that most US-style prediction market platforms remain inaccessible to Australian users. Polymarket explicitly restricts access from Australia on its platform, consistent with the ACMA’s findings. The regulator’s action signals that crypto-based prediction markets offering wagering on event outcomes will be treated as gambling services subject to the same licensing requirements as traditional online betting operators. This creates a significant barrier to entry for international prediction market platforms seeking to serve the Australian market.
