Australian regulators have effectively blocked prediction markets from operating domestically, citing gambling rather than financial regulations. During a parliamentary hearing, ASIC Chair Sarah Court confirmed no applications have been received from providers like Kalshi or Polymarket. Court warned prediction markets function like binary options and all-or-nothing bets, carrying high risk for retail participants.
In August, ASIC issued a consumer warning stating overseas users lack legal protections and client money safeguards. The Australian Communications and Media Authority has also instructed internet providers to block Polymarket as part of a crackdown on illegal gambling sites. While Australians can still access these platforms directly, participation remains unregulated and unprotected.
Court emphasized that if an application were submitted, it would face a rigorous statutory test, as prediction markets possess features fundamentally different from traditional financial instruments.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing