New Zealand’s Department of Internal Affairs (DIA) has confirmed to SBC Media that Kalshi and Polymarket have been contacted and told that they are not authorised to provide their prediction markets in the region, as they are defined as gambling under the country’s law.
Reports earlier this week mentioned that New Zealand was examining Kalshi and Polymarket, and that the platforms would be contacted since their gambling products are prohibited in the market.
Currently, online sports betting is allowed in the country exclusively via Entain’s TAB sportsbook, while online casino regulations are being established for implementation later this year, with the market’s launch expected on 1 December.
Prediction products = gambling
Vicki Scott, Director of Gambling at the DIA, confirmed to SBC that both Kalshi and Polymarket have been contacted regarding the matter, with at least one operator already taking action.
Scott said: “On 16 February, DIA wrote to prediction markets Polymarket and Kalshi, confirming that their prediction market products meet the definition of gambling under New Zealand law.
“As well as the general gambling rules, there are also specific restrictions on betting products, which only allow TAB NZ to provide racing and sports bets in New Zealand. The prediction market operators are not authorised to offer gambling in this country, so need to withdraw from the New Zealand market.
“We were pleased to see Kalshi acting swiftly. Within hours it had added New Zealand to its list of prohibited countries. We are monitoring Polymarket in the expectation that it will take a similarly professional approach and comply with the law in New Zealand.”
Prediction markets on a global scale
Plenty of other countries globally have criticised prediction market platforms for their operations in their respective markets.
This includes the Dutch regulator Kansspelautoriteit (KSA), which has warned Adventure One QSS, the operator of the Polymarket brand in the Netherlands, that it must cease its presence in the country or it would be sanctioned with a weekly fine of €420,000, with a maximum penalty of €840,000.
Ella Seijsener, Director of Licensing and Supervision at the KSA, commented: “Prediction markets are on the rise, including in the Netherlands. These types of companies offer bets that are not permitted in our market under any circumstances, not even by license holders.
“Besides the social risks of these kinds of predictions (for example, the potential influence on elections), we conclude that this constitutes illegal gambling. Anyone without a KSA license has no business in our market. This also applies to these new gambling platforms.”
Meanwhile, prediction markets continue to face pushback in several US states, as Kalshi is involved in lawsuits against authorities in Massachusetts and Nevada, with the latter also issuing temporary restraining orders against Crypto.com and Polymarket.
