Argentina Applies Nationwide Ban on Polymarket

Key Points

• Argentina blocked Polymarket over illegal gambling and missing safeguards.
• Authorities restricted access and removed apps after inflation data concerns appeared.
• The move shows rising global focus on prediction market platforms.

Argentina has placed a nationwide ban on the prediction market platform Polymarket after a court decision forced regulators to stop its operations over alleged illegal gambling activities. A court in Buenos Aires instructed authorities to carry out the order after it decided the platform worked outside the country’s legal gambling system. Judges also concluded the platform acted as an online betting system rather than a recognised prediction market, which increased concern among officials. This ruling followed legal steps taken by the Buenos Aires City Lottery and the Argentine Chamber of Casinos and Bingos. Both groups claimed the platform provided unlicensed betting services and continued operating without proper approval from national authorities.

Unlicensed Betting and Missing Safeguards Trigger Concern

Authorities confirmed that Polymarket allowed users to place bets using cryptocurrencies and credit cards without holding any licence in Argentina. Officials also noted the platform lacked proper identity checks and age controls, which raised fears about minors entering betting activities. Regulators expressed concern that consumer protection risks increased because the platform failed to apply basic monitoring systems. Authorities highlighted that the platform ignored key compliance steps such as the Know Your Customer requirements and controls against illegal financial activity. Judge Susana Parada described the platform as an unregulated betting operation that bypassed gambling laws designed to protect users. Following this decision, telecom regulator ENACOM received orders to work with internet providers to block access across the country. Apple and Google were also instructed to remove Polymarket apps from their stores to reduce access for users in Argentina.

The situation became more urgent after an incident linked to Argentina’s February inflation data created serious concern among officials. Activity on the platform shifted sharply shortly before official numbers were released by the National Institute of Statistics and Census. Reports showed the platform updated its prediction to match the correct 2.9% inflation rate about 15 minutes before the official release. Authorities viewed this timing as suspicious and raised concern about possible early access to restricted government data. Officials believed this was not simple prediction accuracy but a possible case of insider trading through a decentralised system. This development increased fear that the platform could allow data arbitrage and weaken trust in official economic reports. Authorities also stressed that prediction markets blur the line between financial speculation and gambling when real money becomes involved.

Strict Action Reflects Serious Violations

Authorities described the enforcement measures as severe, showing how seriously they viewed the violations found during the investigation. At the same time, the platform had removed a prediction market linked to nuclear weapon detonation probabilities after public backlash grew. This action happened during rising tensions in the US-Iran conflict, which added pressure and increased concern among observers. Argentina now joins more than 30 jurisdictions worldwide that have taken action against Polymarket. This reflects growing global attention on prediction market platforms and their compliance with gambling and financial rules. Within Latin America, Argentina became the second country after Colombia to ban the platform completely. Colombia had earlier ordered internet providers to block access and started investigations into unauthorised online gaming activity. Other countries, including Romania, have classified the platform as an unauthorised gambling activity under national law.

Regulators in several US states are reviewing whether event-based contracts fall under existing gambling or derivatives frameworks. In the United States, platforms like Polymarket and Kalshi face increasing legal pressure and warnings from state regulators. These warnings relate to alleged unregulated betting services and lawsuits claiming illegal online gambling operations. One case in Oregon in February 2026 involved legal action against Kalshi over such concerns. Another dispute arose when traders claimed they did not receive winnings linked to bets about Iran’s Supreme Leader Ali Khamenei. They stated that a $54 million market was paused and payouts were withheld during the Iran war, which increased frustration. Authorities and lawmakers have raised concerns about contracts tied to sensitive events, including death or violent outcomes.

This has triggered criticism and pushed new legislative attention towards prediction market platforms. At the same time, Brazil has seen rising activity in prediction markets as interest continues to grow. Kalshi announced plans to launch services in Brazil, showing expansion despite increasing regulatory pressure worldwide.