Adam Roarty is a journalist covering sports betting, regulation, and industry innovation for CasinoBeats. His coverage includes tax increases in the UK, covering breaking stories in the ever-evolving landscape of US betting such as the...
Read Full BioPrediction markets platform Polymarket has been blocked in Australia after an investigation revealed the operator was illegally targeting Australians.
The ACMA announced that Polymarket was one of four websites to be blocked, along with Slot Mafia, Top Aussie Pokies, and Spinanga. The country’s gambling regulator has now blocked 1,296 gambling and affiliate websites since 2019.
Australia now joins a long list of countries that have restricted access to Polymarket, including:
- Belgium
- France
- Poland
- Singapore
- Switzerland
- United Kingdom
- United States
- Ontario (Canada)
- Thailand
- Taiwan
The company is, however, attempting to legally enter the US market again after acquiring QCEX, an exchange regulated by the Commodity Futures Trading Commission (CFTC).
The move to acquire QCEX came after an investigation into allegations that Polymarket continued to accept US users was ended by the FBI and CFTC.
Polymarket Paid Australian Instagram and TikTok Creators to Promote Platform
Polymarket already geo-blocked Australians from accessing the site, but through VPNs, it is believed many continue to use the platform. Similar accusations have been made about users in the US, which led the FBI to raid founder Shayne Coplan‘s home last year.
The ACMA took further action against Polymarket when it emerged that the company had been actively promoting itself to Australians through social media.
An investigation by Australian media outlet Crikey revealed that Polymarket was paying Australian Instagram and TikTok creators to promote the platform in the lead-up to the nation’s federal election this year.
Influencers were found to have posted content citing Polymarket odds and tagging the company’s account, with at least two confirmed as paid promotions.
In response to the allegations, the ACMA launched its own investigation, with a spokesperson writing, “The ACMA uses various means, including complaints from the public, to identify possible breaches of Australia’s online gambling laws.”
Social Media Use Continues to Court Controversy
Recent posts on social media have also caused controversy, with Polymarket found to be dispersing false information that impacted markets on the site.
Despite being blocked and illegal in many countries, the company claims it is the biggest prediction market site in the world. After completing a round of funding backed by Peter Thiel, the co-founder of PayPal, Polymarket was recently valued at over $1 billion.
It does not hold any valid licenses to legally operate as a betting platform or exchange, but the acquisition of QCEX may indicate the company wishes to become more compliant with regulations.
Other prediction market platform Novig also expressed interest in obtaining a license from the CFTC. The company completed an $18 million round of funding this week and claims to be the fastest-growing sports prediction market. Like Polymarket, it has been unlicensed so far, but has utilized a sweepstakes model to skirt gambling regulations.
The licensing process is often long and arduous, which dissuades platforms from applying. QCEX applied to the CFTC for its license in 2022, but was only granted approval late last year. It was around that time that Polymarket was fined $1.4 million by the CFTC for flaunting US regulations. It is therefore unlikely that the action taken by the ACMA will have much impact on its operations.
