Australia Blocks Polymarket in Latest Illegal Gambling Crackdown

The Australian Communications and Media Authority (ACMA) has ordered internet service providers to block access to Polymarket, a blockchain-based prediction market on Polygon. The Australian regulator found it, along with other websites, in breach of the country’s gambling laws.

The ACMA said the block stems from investigations into offshore platforms operating in breach of Australia’s Interactive Gambling Act 2001. Other sites named in the latest enforcement round include Slot Mafia, Top Aussie Pokies, and Spinanga.

ACMA Targets Blockchain Gambling

Website blocking is one of several enforcement options the ACMA uses to protect Australians from illegal online gambling. Since making its first blocking request in November 2019, the regulator has blocked 1,296 illegal gambling and affiliate websites. In addition, approximately 220 illicit services have voluntarily exited the Australian market since the ACMA began enforcing new illegal online gambling rules in 2017.

The ACMA emphasizes that even platforms that appear legitimate are unlikely to provide critical customer protections. Australians using these unlicensed services risk losing money. To ensure compliance, the regulator advised consumers to check whether a wagering service is licensed in Australia using the official register.

The regulator has repeatedly targeted offshore operators, including platforms that attempt to bypass Australian laws using decentralized or blockchain-based systems. Although decentralization or cryptocurrency use might give the impression of operating beyond national jurisdiction, the ACMA has maintained that any service accessible to Australian consumers must comply with the Act and related regulations. 

Polymarket Faces Regulatory Scrutiny

While Polymarket is often described as a market rather than a traditional gambling site, it has faced significant global scrutiny. In 2022, the United States Commodity Futures Trading Commission (CFTC) ordered the platform to pay a $1.4 million civil penalty. The agency accused the firm of offering unregistered binary options contracts over unregistered markets. The case marked one of several regulatory challenges the platform has faced.

More recently, Polymarket has encountered controversy over high-profile events, including the $140 million Zelensky suit market dispute. The incident and ensuing disagreements over outcome resolution highlighted potential governance and fairness issues. 

ACMA’s recent action against Polymarket illustrates that decentralized platforms cannot sidestep national gambling regulations. The rules will apply whether they operate on a blockchain network or use stablecoins.

Regardless of the regulatory hurdles, Polymarket has continued to expand. The platform is pursuing aggressive growth strategies and fundraising, aiming for a $1 billion valuation.

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