New Zealand Rules Prediction Markets Are Illegal Gambling
The country’s Department of Internal Affairs (DIA) has banned companies from offering event contracts to residents.
“Since they aren’t authorized operators, they are prohibited from offering their gambling products to people in this country,” DIA gambling director Vicki Scott said. “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.”
Announcement Comes As Online Gaming Regulation Takes Shape
Despite the threat, New Zealand doesn’t currently geoblock online gaming sites, so prediction markets like Kalshi and Polymarket are likely still available to Kiwis. Neither platform lists New Zealand as an excluded country as of Thursday morning.
In the current legal landscape, iGaming giant Entain owns the TAB platform, the only legal online gambling option in the country. Entain is the giant behind other popular brands like Ladbrokes, bwin, PartyPoker, and BetMGM (with partner MGM Resorts).
The company became the country’s sole operator in 2025, and as part of that deal, the government divided online gaming into two categories: online wagering and online casinos. Operators like Kalshi and Polymarkets do not currently fall within those categories, according to the DIA.
That monopoly, though, may be going away soon. The New Zealand Parliament is currently considering a bill that would see the government auction off 15 online gaming licenses.
Australian regulators also labeled prediction markets as gambling earlier this month. The country’s Communications and Media Authority had already banned Polymarket last August.
Companies Face Controversy In US
Prediction market companies have argued that they are solely regulated at the federal level by the Commodity Futures Trading Commission. After beginning to branch out into sports, however, state gaming regulators balked, alleging prediction markets were violating state gaming laws.
That has led to several lawsuits involving these companies as well as state regulators issuing cease-and-desist letters to platform operators like Kalshi and Polymarket.
In Nevada, a judge recently granted a temporary restraining order against Polymarket. Federal lawmakers also recently circulated a letter about their concerns of prediction markets offering sports contracts.
A Massachusetts state judge also granted a preliminary injunction against Kalshi, barring the company from offering sports contracts while a case to ban prediction markets moves forward.
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