Argentina Bans Polymarket for Acting as an Unregulated Betting Platform

The Argentine justice system has ordered a nationwide block on Polymarket, one of the largest prediction market platforms, after a contract estimating February’s inflation numbers registered a trend reversion 15 minutes before the official release, hinting at a possible insider leak.

Argentina Bans Polymarket, Becomes First Country in Latam to Do So

Argentina has become the first country in Latam to block access to Polymarket, one of the largest prediction market platforms in the world.

The measure, ordered by local courts, is already in effect and results from a lawsuit initiated by the Buenos Aires City Lottery (LOTBA) and the Argentine Chamber of Casinos and Bingos (CASCBA), which complained that Polymarket operated as an unregulated betting platform in the country.

The platform lets users access its services without passing identity checks, which could presumably allow minors to participate in these contracts using credit cards or cryptocurrencies. Kalshi, a similar platform, features these checks and promotes itself as a “regulated” prediction market platform.

Brazil is also debating the true nature of prediction markets, with some claiming these are more akin to gambling platforms and must be regulated as such.

As a consequence, the courts ordered ENACOM, the National Communications Entity, to “implement the necessary actions through Internet service providers” to ban nationwide access to the site, as Polymarket has no authorization in any province.

In addition, Apple and Google will be ordered to eliminate access to the apps on their main app stores for users in Argentina.

The ban comes after the platforms registered suspicious activity in a contract tied to Argentina’s inflation rate numbers for February. The trend changed 15 minutes before the numbers were officially announced, hinting at a possible insider leak.

Prediction markets are facing several problems in the U.S, where state regulators claim that some contracts, particularly those linked to sports events, can be considered unlicensed sports wagering. Nonetheless, these platforms claim that the Commodity Futures Trading Commission is the regulator overseeing their activities, arguing that they should comply with federal rules.

FAQ

• Why is Polymarket banned in Argentina? Local courts blocked the platform for operating as an unregulated gambling site without mandatory user identity checks.
• How is Argentina enforcing the Polymarket ban? The government ordered national internet service providers to block website access and requested its removal from mobile app stores.
• What specific event accelerated the Polymarket lawsuit in Argentina? The ban followed suspicious trading activity that indicated a possible insider leak regarding Argentina’s February inflation data.
• Will other Latin American countries ban Polymarket? While Argentina is the first Latam country to implement a ban, Brazil is actively debating similar prediction market regulations.