Australia ASIC views prediction markets as gambling, not investments

Australia’s corporate regulator, the Australian Securities and Investments Commission (ASIC), considers prediction markets to be closer to gambling than financial investment products. At a parliamentary hearing, ASIC chair Sarah Court stated that no prediction market operator has applied for a license to operate in Australia, and any future applications would undergo strict scrutiny. Court highlighted that prediction markets share similarities with binary options, where investors can lose their entire stake based on outcomes, complicating their classification as suitable financial products for retail investors. Additionally, Australian authorities have previously cautioned that users of offshore prediction markets may lack investor protection under national financial regulations, leading to the blocking of access to Polymarket as part of efforts to combat illegal online gambling.

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