Singapore and Thailand Ban Polymarket Citing Gambling Concerns
Singapore and Thailand have banned Polymarket, labeling it as a gambling platform due to its inclusion of sports prediction markets. This classification raises concerns about its legitimacy compared to traditional sportsbooks.
Key points include:
- Critics argue that while prediction markets can provide value for hedging events, their sports-related offerings lack significant impact.
- New York attorney Aaron Brogan asserts that prediction markets function as neutral intermediaries, unlike state-licensed gambling products that take bets against users.
- Prediction markets generate revenue through transaction fees rather than betting odds.
- Brogan differentiates prediction markets from gambling by stating they are tools for understanding and creating public goods.
- In the U.S., prediction markets registered as Designated Contract Markets (DCMs) fall under federal regulation, which can override state gambling laws.
- Kalshi, a registered DCM, recently launched Super Bowl betting markets, leveraging this regulatory framework.
- Polymarket is not U.S.-registered, making it vulnerable to state legal actions regarding sports betting.
- Crypto.com has entered the market with its own sports betting platform following self-certification as a DCM with the CFTC.
- If the CFTC does not act on applications within 24 hours, the platforms can operate freely, potentially disrupting the $21 billion sportsbook industry.