New Zealand has classified prediction market platforms like Kalshi and Polymarket as illegal under its gambling laws. The decision aligns with Australia’s stance, which also views prediction markets as gambling, impacting operators’ legality and functionality in both countries.
The Department of Internal Affairs in New Zealand has emphasised that prediction market operators are prohibited from offering their gambling products to New Zealand residents.
Vicki Scott, the Department’s Gambling Director, told Newsroom: “Since they are not authorised operators, they are prohibited from offering their gambling products to people in this country.
“To the extent these platforms are taking bets from New Zealand customers, they are breaching the law here and can expect to hear from us.”
Despite this, New Zealand does not currently block gambling websites, allowing platforms like Polymarket and Kalshi to remain accessible unless they voluntarily restrict local users.
The only platform available for online betting in New Zealand is the TAB, which operates under a monopoly following Entain’s takeover of its operations. However, changes are on the horizon with the upcoming auction of 15 licenses for online betting operators, as the Online Casino Gambling Bill progresses through Parliament. Potential operators are already being called to register ahead of this launch.
For now, prediction market platforms that offer sports event contracts might remain outside the regulatory scope defined by New Zealand law, which distinguishes between online wagering and online casinos. Australia’s earlier decision to ban Polymarket further underscores the regional crackdown on these markets.
The Australian Communications and Media Authority found that despite the ban, Polymarket had not blocked Australian IP addresses, allowing continued access through workarounds such as VPNs. This raises questions about the effectiveness of such bans when internet circumvention tools are readily available.
In both countries, these developments highlight an ongoing effort to regulate online gambling and prediction markets, drawing clear lines on what constitutes legal gambling activity.
