Argentina bans Polymarket as court finds it to be unlicensed gambling
A court in Argentina has ordered internet providers in the country to block access to predictions platform Polymarket.
Judge Susana Parada made the ruling following an investigation by Prosecutor Juan Rozas of the Buenos Aires specialized gambling prosecution office, which found that the site is operating as an unlicensed online betting service, according to the Buenos Aires Times.
The ruling states that Polymarket operates like a gambling platform but lacks the necessary authorization to operate within the country’s regulated gaming framework.
Officials also raised concerns that the site does not conduct sufficient identity checks on users, thereby increasing the risk of unregulated betting activity.
The city’s gambling regulator, the Lotería de la Ciudad de Buenos Aires, was the first to lodge a complaint against Polymarket. The non-profit lottery group, the Asociación de Loterías Estatales de Argentina, also conducted checks on Polymarket and found that it lacked licenses in all jurisdictions.
The case gained attention after large wagers were reportedly placed on Argentina’s monthly inflation rate shortly before the official data was released.
Around US$91,000 in bets were recorded on the platform, prompting suspicions that traders may have had access to classified information before the government announcement.
The ruling means that the country’s telecom regulator, Ente Nacional de Comunicaciones, must enforce internet service providers to stop hosting Polymarket. Google and Apple are also required to remove the platform from their app stores.
Countries like New Zealand and Australia also banned Polymarket for illegal gambling.
Charlotte Capewell brings her passion for storytelling and expertise in writing, researching, and the gambling industry to every article she writes. Her specialties include the US gambling industry, regulator legislation, igaming, and more.
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The Backstory
Why Buenos Aires moved now
Argentina’s block on Polymarket lands at the intersection of intensifying global scrutiny and a reshaped regulatory map for prediction markets. Local prosecutors alleged the crypto-based venue functioned as an unlicensed betting site and raised red flags about inadequate identity checks. The focus sharpened after wagers clustered around Argentina’s monthly inflation print, a reminder that macroeconomic data can become high-stakes events on such platforms. The move mirrors a broader pattern: regulators are treating real-world event trading as gambling when it lacks explicit authorization or safeguards, while financial watchdogs in some jurisdictions carve narrow paths for compliant offerings.
The regional context is telling. Chile’s top court recently underscored that online gambling is illegal unless expressly permitted, ordering providers to block illicit sites and limiting lawful play to state-sanctioned lotteries, racetracks and licensed casinos. The ruling followed legislative efforts to clarify oversight of a market authorities say includes hundreds of offshore operators. That decision, detailed in Chile’s Supreme Court clarifies online gambling laws, frames a tougher baseline that neighboring regulators can point to as they confront unlicensed digital betting.
Argentina’s case also turns on optics and market integrity. Large trades ahead of official data risk undermining confidence in both financial markets and public statistics. By moving to cut access through telecoms and app stores, authorities signaled they are willing to combine gambling rules, consumer protection and information security concerns to police the gray zone where crypto prediction markets operate.
Election betting as a fault line
Policymakers increasingly view political wagering as a bright red line. In Colombia, the national regulator ordered internet providers to block Polymarket over unauthorized election betting, arguing the activity falls under illegal games of luck and chance. Coljuegos’ action, described in Colombia’s gambling regulator orders ISPs to block Polymarket, emphasized the state monopoly over games of chance and the need for formal permits. The agency tied enforcement to public finance, noting legal gambling funds subsidized health care and that more than 28,000 unlicensed sites had already been targeted.
The electoral carve-out is not unique to Colombia. Many jurisdictions either prohibit or tightly restrict markets tied to democratic outcomes, citing concerns about manipulation, bribery and public trust. When Argentina’s probe highlighted trading on sensitive economic releases, it echoed the same anxiety: that prediction venues can create incentives that collide with governance norms. The cross-border nature of crypto platforms magnifies the challenge, as a ban in one country may redirect traffic to another unless enforcement aligns.
Mixed signals from the United States
Global bans have advanced even as Polymarket gained a limited foothold in the United States. After paying a penalty and walling off U.S. users in 2021, the platform set up a path to return by acquiring a regulated entity and seeking narrow approvals. The Commodity Futures Trading Commission issued a no-action letter in early September, clearing a U.S. relaunch focused on defined categories like athletic events and election winner contracts. That pivot was outlined in Polymarket set to relaunch in US as early as Friday.
Yet domestic acceptance is uneven. State-level regulators are scrutinizing unlicensed prediction venues that present themselves as investment products while offering wagers on sports or other outcomes. Michigan’s gaming authority said it would investigate platforms operating outside state law, warning about risks to consumers and the integrity of regulated sportsbooks. The watchdog’s rationale, including concerns about KYC, AML and age checks, is detailed in Michigan regulator to investigate unlicensed prediction markets. The split view—federal forbearance under commodity rules versus state enforcement of gambling codes—adds complexity for platforms that rely on standardized, borderless product design.
For Argentina, the U.S. developments cut both ways. A narrow federal green light for some contracts under derivatives law does not translate to acceptance abroad, especially where gambling is a state monopoly or where election betting is barred. Authorities in Buenos Aires can point to Michigan’s stance to argue that strong consumer safeguards and clear licensing remain the baseline for legal operation.
Asia’s hardening perimeter
Regulatory consolidation in Asia has accelerated, hemming in offshore gambling and crypto wagering alike. Singapore’s Gaming Regulatory Authority declared Polymarket illegal this year, backing the decision with potential fines and jail time and citing a broader campaign that blocked thousands of illicit sites and intercepted millions in transactions. The move builds on the city-state’s tightened oversight of online betting and casinos, as covered in Singapore bans online prediction site Polymarket. Singapore Pools remains the only authorized online operator, and regulators have rejected cryptocurrency for casino cashless systems, signaling caution toward crypto rails in gambling contexts.
These steps matter for Latin America because enforcement models often travel. Coordinated ISP blocks, payment interdictions and app store removals have become standard tools. As Argentina tasks telecom and platform gatekeepers with compliance, it joins peers aligning practical levers of internet access with gambling statutes to rein in offshore operators.
Stakes for markets, consumers and platforms
For traders, the squeeze narrows legal venues for speculating on politics and data releases, especially in countries with strict monopolies or explicit bans on election betting. For licensed operators, crackdowns protect market share and tax flows. Regulators frame the stakes around consumer harm—fraud, data security and underage access—and around institutional integrity when wagers target public metrics.
For Polymarket and rivals, the map is fragmenting. Growth depends on two tracks: stitching together compliant products in jurisdictions that allow them, and fencing out markets where gambling law takes precedence or where specific subjects like elections are off-limits. The operational burden rises with each country that demands local licenses, geo-blocking and verifiable compliance audits. Argentina’s move adds to that ledger, signaling that high-profile trades on sensitive events can trigger swift enforcement.
What to watch next
Key questions now revolve around consistency and scope. Will more Latin American regulators follow Chile and Colombia in codifying or reaffirming hard bans that carry ISP blocking orders, or will some carve out regulated prediction markets limited to sports or nonpolitical events? Will app store delistings become a default response, tightening effective blocks beyond ISP actions? In the United States, how state regulators reconcile gambling rules with federal commodities guidance will shape whether prediction markets can scale without continuous geo-fencing.
Argentina’s case suggests enforcement will intensify where platforms touch sensitive civic or economic indicators without clear licensing, identity checks and audit trails. The industry’s next phase will be defined less by technology and liquidity than by regulatory fit—and by whether platforms can separate speculative trading from prohibited gambling in the eyes of national watchdogs.
