Table of Contents
Australian Communications and Media Authority Targets Polymarket for Illegal Gambling
Australia’s media regulator, the Australian Communications and Media Authority (ACMA), has taken steps to block internet access to the blockchain-based prediction market, Polymarket. This decision stems from findings that Polymarket has been providing gambling services to Australians without the necessary licensing, in breach of the country’s Interactive Gambling Act (2001).
Background on the ACMA’s Investigation
The ACMA’s investigation into Polymarket began during last year’s federal election, revealing that the platform was actively promoting its services to Australian users, specifically related to election outcomes. Such activities raised concerns regarding compliance with Australian laws, which regulate online gambling to protect consumers.
In response to the illegality of Polymarket’s operations, the ACMA has requested that Australian internet service providers (ISPs) block access to the platform, further aligning Australia with other nations that have implemented similar bans, including Singapore, France, and Switzerland.
The regulator’s latest action brings the total number of illegal online gambling sites blocked by ACMA to nearly 1,300. Alongside Polymarket, ISPs have also been instructed to block sites such as Slot Mafia, Top Aussie Pokies, and Spinaga.
Protecting Australian Consumers
The ACMA has emphasized that blocking websites is part of a broader strategy to safeguard Australians from illegal online gambling. It advises users to verify that any wagering sites they engage with are duly licensed to operate in Australia, referencing its official register for guidance. The ACMA cautioned that while a service may appear legitimate, it may lack essential consumer protections, leading to financial risks for individuals using unlicensed platforms.
International Developments
While Polymarket faces scrutiny in Australia, the platform has also been subject to investigations in the United States. Recently, two probes initiated by U.S. authorities—the Commodity Futures Trading Commission (CFTC) and the Department of Justice—were closed without further action. An anonymous source indicated that Polymarket received declination notices from both agencies regarding their investigations into the platform’s acceptance of bets from U.S. residents. This follows a previous incident where Polymarket was fined US$1.4 million (AU$2.1 million) by the CFTC for failing to register as a facility for offering event-based binary options.
Conclusion
As Australia joins the ranks of countries banning Polymarket to protect its citizens from unregulated gambling, the situation serves as a reminder of the increasing regulation surrounding online gambling platforms. The ACMA’s crackdown on illegal betting sites highlights its commitment to enforcing local laws and safeguarding consumers against the risks associated with unlicensed operations. For the online gambling community in Australia, the ACMA’s advisories reinforce the importance of engaging with compliant services that provide adequate consumer protection.
