Argentina has become the first Latin American country to impose a complete ban on prediction market platform Polymarket after a Buenos Aires court ruled the service operates outside legal boundaries. Internet providers have been ordered to restrict access, while tech companies must remove or limit the platform’s mobile applications for local users.

Lottery and Casino Operators Initiate Legal Action

The Buenos Aires City Lottery brought the case forward alongside casino industry representatives, arguing Polymarket circumvented national gambling regulations. The platform allows users to stake cryptocurrency on yes-or-no outcomes covering everything from political events to global conflicts. What it actually functions as, authorities say, is an unlicensed betting service.

Investigators found the platform accepted deposits through cryptocurrencies and credit cards while lacking proper identity verification systems. Accounts could be created in minutes, raising concerns about access by minors and vulnerable individuals.

That’s a fundamental regulatory failure by any standard.

Inflation Data Incident Raises Red Flags

The case gained momentum after unusual market activity around Argentina’s February inflation data. Market behaviour on Polymarket shifted before the official figure was released – aligning with the final number ahead of time. Officials interpreted this as potential evidence that sensitive data may have been accessed rather than accurately predicted.

Regulators emphasised their focus remained on compliance issues and user protection. The court determined these factors exposed users to financial and legal risks while failing to meet standards required for licensed gambling services. The absence of monitoring mechanisms proved decisive. No procedures to verify identities or prevent fund misuse.

Enforcement and Global Context

Argentina’s communications regulator is coordinating the ban’s implementation, ensuring internet service providers enforce the restrictions. The measure’s effectiveness will depend on cooperation from telecom companies and global app store operators.

Argentina now joins over 30 jurisdictions that have limited or blocked Polymarket access. That includes several European nations and Australia. The move reflects broader questions about how decentralised prediction markets fit within existing legal frameworks, particularly where they intersect with gambling regulation.

Look, the platform’s crypto-based model and rapid account creation process present obvious regulatory challenges. Without proper licensing and oversight, these services operate in a grey area that leaves consumers exposed. Argentina’s decision sends a clear message about enforcing existing gambling laws. Doesn’t matter how innovative or decentralised a platform claims to be.

What the team thinks

Sheena McAllister says:

Argentina’s decisive action here highlights what we’ve been seeing across multiple jurisdictions, regulators are running out of patience with platforms operating in a compliance grey area. The interesting aspect from a regulatory standpoint is how the lottery and casino operators drove this case, which suggests established licensees are increasingly willing to use legal channels to protect their regulated markets from unlicensed competition. This could set a precedent for other Latin American regulators who’ve been hesitant to act against prediction markets, particularly as they clarify whether these platforms constitute gambling under their specific legislative frameworks.