TLDR
- Argentina has banned Polymarket nationwide after authorities found it was operating without legal authorization
- Buenos Aires City Lottery (LOTBA) filed the complaint that triggered a judicial order to block the platform
- A judge ordered the blocking of Polymarket’s website and apps across the entire country
- Regulators flagged concerns over missing age and identity verification and the use of crypto payments
- Argentina is now the first country in Latin America to restrict a prediction market platform
Argentina has banned the crypto-based prediction market platform Polymarket from operating anywhere in the country. The decision came after regulators found the platform was running without the proper legal authorization.
The Buenos Aires City Lottery, known as LOTBA, filed the initial complaint that set the process in motion. Its internal teams first flagged the platform’s operations, which then led to a formal investigation.
Judge Susana Parada, who heads the PCyF No. 31 court, issued a judicial order to block Polymarket throughout Argentina. The order covers both the website and all applications tied to the platform.
The investigation was carried out by LOTBA’s technical team alongside the Specialized Prosecutor’s Office for Gambling, known as FEJA. Prosecutor Juan Rozas led the effort on behalf of FEJA.
LOTBA Director Ezequiel Domínguez said the process started with the organization’s own detection systems. He stated that the initial identification by their technical teams led to the formal investigation and ultimately the court’s decision.
The move makes Argentina the first country in Latin America to impose a ban on a prediction market platform. No other nation in the region has taken similar action against this type of service.
Regulators Flag Crypto Payments and Missing Verification
The Argentine authorities raised several concerns about how Polymarket operates. One major issue was the lack of proper age verification checks for users signing up on the platform.
Identity verification was also found to be lacking. Regulators said users could create accounts without going through proper checks, which raised consumer protection red flags.
The platform’s acceptance of cryptocurrency payments was another point of concern. Polymarket allows transactions using both crypto and credit cards, which regulators viewed as a compliance risk.
These issues combined led authorities to conclude that the platform posed risks to consumers and did not meet the country’s regulatory standards.
Multiple Agencies Coordinated the Ban
The enforcement of the ban involved coordination between several Argentine institutions. The Association of State Lotteries of Argentina, known as ALEA and headed by Ida Lopez, confirmed that Polymarket had never been granted legal authorization to operate.
The Argentine Chamber of Casinos, Bingos, and Annex Halls also supported the action. Their involvement showed a broad consensus among gambling regulators in the country.
Polymarket is a prediction market platform where users bet on the outcomes of future events. Unlike traditional sportsbooks, its prices are driven by user activity rather than set by the house.
Users buy shares tied to questions about future events. The value of those shares moves based on supply and demand, reflecting the probability that users assign to each outcome.
The platform uses blockchain technology to process transactions. This allows users from around the world to participate using cryptocurrency wallets.
Following the judicial order, access to Polymarket’s website and associated applications has been restricted across Argentina. The block is currently in effect nationwide.
