The Australian gambling regulator, the Australian Communications and Media Authority (ACMA), has ordered internet providers to block access to crypto-betting platform Polymarket in Australia following a Crikey investigation that revealed the site was targeting Australian users through TikTok promotions.
Key Takeaways
- Polymarket has been banned in Australia by the country’s gambling regulator.
- An investigation found that it had been targeting Australians.
- Polymarket was also found to be in breach of the Interactive Gambling Act.
ACMA added Polymarket and three other “illegal online gambling sites” on its list of blocked platforms on Wednesday, citing breaches of the Interactive Gambling Act 2007, which requires ISPs to restrict access to unlicensed gambling services offered to Australians.
Polymarket is a platform that allows users to bet cryptocurrency on various “prediction” markets, which range from sports to politics.
The platform did use geo-blocking technology to deter Australian users. However, VPNs easily bypass these restrictions, and many accounts engaging with Australian-related bets appear to be local.
As a result, ACMA requested internet service providers (ISPs) to block access to the platform, which is already banned in countries like France, Switzerland, and Belgium. ACMA’s actions follow months of investigation, first reported in May. However, as a result, the ban is now in effect, and Australian users attempting to access Polymarket will find their access blocked.
Polymarket is yet to comment on the regulator’s decision.
Polymarket set to return to US after $112M acquisition clears legal path
Despite the ban in Australia, Polymarket is set to return to the US after being banned in 2022 for operating without proper licenses under the Commodity Futures Trading Commission (CFTC). Polymarket founder and CEO, Shayne Coplan, announced a new acquisition deal worth $112 million that will pave the way for Polymarket’s return to the US.
Namely, Polymarket is going to acquire QCEX, a licensed US exchange, which will allow American bettors to participate in the company’s offering and games. Polymarket covers various markets, including political, cultural, and financial events, from elections to celebrity gossip.
The platform made headlines during the 2024 presidential election when $3.2 billion in wagers were placed on it despite its ban in America. In fact, following the elections, the FBI raided the CEO’s home over allegations that US users were still betting through VPNs.
However, the current administration dropped all probes and investigations into Polymarket, meaning the platform is free to reenter the US market.
Polymarket set to hit $1B valuation
Apart from leaving and reentering different geological markets, Polymarket is nearing a $200 million funding round led by billionaire Peter Thiel’s Founders Fund, which would value the company at over $1 billion.
Polymarket saw massive growth ahead of the 2024 US presidential elections, when its markets predicted a Republican sweep despite most polls favoring Democrat Kamala Harris.
The platform currently offers crypto-based markets on topics such as the potential fall of Iran’s regime, the closure of the Strait of Hormuz, and a US recession in 2025.
