Are prediction markets
legal in Australia?
Prediction markets occupy a genuine regulatory grey zone in Australia: neither ASIC nor ACMA has established clear jurisdiction. The Interactive Gambling Act 2001 (IGA) prohibits operators from providing certain interactive gambling services to Australians, but courts have not tested whether prediction market contracts meet this definition. Individual users are not prohibited from accessing services. This guide explains the legal landscape and what it means for you.
ASIC vs ACMA: competing jurisdiction
The Australian Securities and Investments Commission regulates financial products and markets under the Corporations Act 2001. If prediction market contracts are classified as financial derivatives, platforms would need an ASIC Australian Financial Services Licence (AFSL). ASIC has not issued any formal guidance on prediction markets.
The Australian Communications and Media Authority enforces the Interactive Gambling Act 2001. The IGA prohibits operators from providing "interactive gambling services" to Australians. Whether prediction market contracts meet this definition is untested. ACMA has not issued a blocking notice or formal ruling against any prediction market platform.
Which platforms can Australians use?
| Platform | Status AU | Explanation |
|---|---|---|
| Polymarket | Grey zone | Accessible via USDC wallet. No Australian licence. No explicit blocking of Australian users. No known enforcement action against Australian users (May 2026). |
| Kalshi | Not available | US exchange regulated by CFTC. US residents only. Geographic restriction. |
| Manifold | Available | Play-money (Mana) with no regulatory relevance. Sweepcash feature accessible from Australia. |
| PredictIt | Not available | CFTC no-action letter for US users only. Australian users explicitly excluded. |
| Robinhood | Not available | Not licenced in Australia for event contracts. Australian users cannot trade. |
What the IGA 2001 actually says
The IGA 2001 prohibits providing "prohibited interactive gambling services" to customers in Australia. The definition of "gambling service" includes wagering services where the outcome depends on chance. Prediction market contracts (where prices are determined by a market mechanism and outcomes are based on verified real-world events) may or may not meet this definition.
Practical assessment: ACMA has focused enforcement on online casinos and sports betting: not prediction markets. The CFTC preemption argument relevant in US states does not apply in Australia. For significant trading volumes, legal advice is prudent. The current lack of enforcement creates de facto tolerance, but this could change if ACMA or ASIC issues guidance.
More guides for Australian users
Prediction Market Tax in Australia
CGT, the 50% discount rule and how to report Polymarket gains to the ATO.
ReviewPolymarket Review 2026 (Australia)
The only major platform accessible in Australia: fees, markets, wallet. Rating 4.3/5.
How-toHow to trade on Polymarket from Australia
From buying USDC to your first trade: step-by-step guide for Australian beginners.