Argentina Blocks Polymarket for Operating as an Unlicensed Betting Site - Crypto Economy

Argentina has ordered a nationwide block of Polymarket, one of the largest prediction market platforms globally, after authorities accused the service of operating as an unregulated betting platform within the country.

The ruling, issued by local courts, follows a lawsuit filed by the Lotería de la Ciudad de Buenos Aires and the Cámara Argentina de Casinos y Bingos, which argued that Polymarket allows users to place prediction-based wagers without regulatory authorization in any Argentine jurisdiction.

The court order instructs the Ente Nacional de Comunicaciones to coordinate with internet service providers to block access to the website nationwide. In addition, Apple and Google will be required to remove Polymarket-related applications from their app stores for users located in Argentina.

The legal action also followed suspicious activity detected in a contract predicting Argentina’s February inflation rate. According to court filings, the market trend in the contract shifted approximately 15 minutes before the official inflation data was released, raising concerns about a potential insider information leak.

A similar dispute continues in United States, where several state regulators argue that contracts linked to sporting events resemble unlicensed sports betting. However, prediction market operators claim their activities fall under federal oversight by the Commodity Futures Trading Commission, which supervises certain derivatives markets.

The Argentine ruling marks the first nationwide restriction against Polymarket in Latin America, highlighting the growing regulatory tension surrounding prediction markets and their classification between financial instruments and wagering platforms.

Source: Reporting based on legal filings and regulatory information cited by Polymarket

Disclaimer: This article is for informational purposes only and does not constitute financial, legal, or investment advice. Cryptocurrency and prediction markets involve risk, and regulatory frameworks may change across jurisdictions.