Are Prediction Markets Legal in Australia?
Last updated: April 2026 · Independent guide for Australia investors
Written by Stephan Kulik
Editor-in-Chief, PredictorHQ
Written for Australia investors by Stephan Kulik, editor-in-chief of PredictorHQ. General information on prediction-market legality — not legal advice.
Last updated: · LinkedIn
Prediction markets in Australia operate at the intersection of two regulatory regimes: gambling law (federal Interactive Gambling Act + state gaming commissions) and financial services law (ASIC and the Corporations Act). The classification determines everything — license requirements, advertising rules, tax treatment, and consumer protection.
Interactive Gambling Act 2001
The IGA prohibits providing interactive gambling services to Australian residents unless licensed by an Australian state or territory. Foreign operators (including offshore prediction markets) cannot legally accept Australian customers without Australian licensing — though enforcement against individual users is rare.
State licensing: Betfair and Sportsbet
Betfair Australia and Sportsbet are both licensed by the Northern Territory Racing and Wagering Commission (Betfair relocated its licence from Tasmania to the NT in 2016). Both are legitimately licensed Australian operators with AUSTRAC AML/CTF obligations under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (not ASIC), and account statements suitable for ATO reporting.
ASIC and the financial product question
ASIC regulates financial products and services. A prediction market structured as a derivative could fall under ASIC oversight requiring an Australian Financial Services License (AFSL). To date, no major prediction market in Australia has been classified as a financial product — they all operate as licensed gambling/betting.
Gray-market platforms: Polymarket and global crypto
Polymarket and similar crypto-settled prediction markets lack Australian licensing. In 2025 the ACMA formally found Polymarket in breach of the Interactive Gambling Act as a prohibited, unlicensed interactive gambling service, issued a formal warning to its operator (2 July 2025), and had Australian ISPs block the site (from around 13 August 2025). Enforcement targets operators rather than individual users, but the site is now blocked at the network level.
Practical advice
Australian investors who prioritize legal certainty should use Betfair or Sportsbet under their Australian licenses. Investors who want broader event coverage and accept gray-market risk can use Polymarket via wallet, recognizing the regulatory uncertainty.
Important
This guide is general information and does not constitute legal advice. Prediction market regulation in Australia continues to evolve. Consult a qualified lawyer for advice specific to your situation.