New Zealand Bans Prediction Markets as Unauthorised Gambling Operations

Key Points

• NZ Bans Prediction Markets: Department of Internal Affairs says Kalshi and Polymarket are illegal gambling operators without licences.
• TAB Monopoly: Only TAB (run by Entain) can offer legal online sports betting.
• Access Still Open: No geoblocking yet in NZ; Australia has already blocked Polymarket.

New Zealand authorities have ruled that prediction market platforms Kalshi and Polymarket operate illegally within the country’s gambling framework. The Department of Internal Affairs reached this conclusion after determining these operators lack proper authorisation to serve New Zealand residents. Media outlet Newsroom reported that the DIA classified prediction market services as gambling products requiring specific licensing. Vicki Scott, who serves as DIA Gambling Director, stated that unauthorised operators cannot legally offer gambling products to local customers. She warned that platforms accepting bets from New Zealand users violate existing laws and should expect regulatory contact. Neither platform has received official notification about this decision from the authorities.

Current Online Wagering Monopoly Structure and Legal Framework

New Zealand’s current legislation separates online gambling into distinct categories covering wagering and casino operations. This regulatory structure emerged when authorities finalised operational agreements for TAB’s online betting services. The framework took effect alongside arrangements with Entain for managing these operations. TAB maintains exclusive rights to provide online wagering services through its platform in New Zealand. Entain manages daily operations under this monopoly arrangement after acquiring control of these services. This system restricts licensed online sports betting to one approved operator within the country. Any organisation offering wagering services without proper authorisation violates New Zealand gambling laws. Prediction markets and sports-event contract providers might operate outside the specific regulatory language currently in place. However, the DIA maintains that existing laws classify these services as gambling activities.

Essential Information

• The Department of Internal Affairs confirmed that Kalshi and Polymarket lack authorisation to provide gambling services in New Zealand, making their operations illegal when accepting local customers.
• TAB holds exclusive online wagering rights through its monopoly arrangement, whilst Parliament advances legislation to auction fifteen online casino licences through the Online Casino Gambling Bill.
• Australian regulators classified prediction markets as gambling activities, prohibited Polymarket operations, instructed ISPs to restrict platform access, and documented approximately 1.9 million Australian visits from November 2024 through May 2025.

Platform Access Continues Despite Regulatory Ruling

New Zealand currently lacks geoblocking mechanisms for gambling websites despite the regulatory determination. Neither Kalshi nor Polymarket includes New Zealand among their restricted territories according to published documentation. Both platforms omit New Zealand from their lists of blocked countries at present. Users in New Zealand can still access these platforms unless the companies implement independent blocking measures. The sites will continue functioning for local users until platform operators decide to restrict New Zealand access.

Australia Implements Similar Regulatory Measures Against Prediction Markets

Australia implemented comparable measures against prediction market platforms earlier this month through regulatory action. The Australian Communications and Media Authority determined that prediction market services constitute gambling under national legislation. Crikey obtained documents through freedom of information requests revealing the regulator’s detailed findings and analysis. These conclusions will likely influence Australia’s broader gambling industry regulatory approach going forward. ACMA subsequently prohibited Polymarket from serving Australian customers and ordered internet service providers to implement access restrictions.

The investigation revealed that Polymarket failed to block Australian IP addresses from accessing its services. Regulatory staff successfully accessed the platform without encountering location verification requirements during testing. Staff members placed bets on the platform without any limits. Records reveal 1.9 million visits came from Australia from November 2024 to May 2025. Australian users might bypass access restrictions and ACMA’s blocking orders. Virtual private networks and similar tools enable continued platform access despite regulatory blocks.