Australia is alerting consumers to steer clear of offshore prediction markets due to the lack of legal protections typical in regulated products. The Australian Securities and Investments Commission (ASIC) has revised its MoneySmart guide as more Australians engage with platforms such as Kalshi and Polymarket.
ASIC Commissioner Alan Kirkland emphasizes that Australian residents participating in these foreign prediction markets are dealing with entities that operate outside of Australian regulations, meaning they miss out on vital consumer protections offered to users of licensed Australian products.
Kirkland noted that activities surrounding prediction markets often resemble gambling, despite their appearance as financial instruments. He stated, "Whatever the legal definition of a prediction market, let’s just focus on the substance and in all practical terms, it is akin to gambling."
The Australian authority has limited visibility on the full extent of the issue, acknowledging that the cases they are aware of may not represent the entire problem. Furthermore, enforcing regulations against insider trading on international websites poses significant challenges.
One notable incident highlighted by Kirkland involved a soldier charged with wagering on the ousting of the Venezuelan president while simultaneously being part of a mission regarding that very event.
In response to concerns over unregulated gambling practices, Australia has already acted against prediction markets. In August 2025, the Australian Communications and Media Authority directed internet service providers to block access to Polymarket after finding that it was offering unauthorized gambling services in violation of the Interactive Gambling Act.
