Kalshi and Polymarket Exit New Zealand After Government Crackdown on Prediction Markets

Key Points

• The New Zealand Department of Internal Affairs (DIA) has ordered Kalshi and Polymarket to cease operating in the country.
• Both platforms offered prediction markets on future events, which are not permitted under New Zealand law.
• The regulatory crackdown highlights ongoing efforts to control the provision of unauthorized gambling services.

What This Means

The New Zealand DIA’s directive for Kalshi and Polymarket to withdraw marks a clear message to prediction market operators: offering markets on future outcomes is not permissible under current national legislation. This enforcement aims to maintain the integrity of New Zealand’s regulated gambling environment and limit access to unauthorized forms of wagering.

For users in New Zealand, this will result in reduced access to international prediction markets, affecting individuals who participated in event speculation through these platforms. The broader industry may see this move as indicative of New Zealand’s intent to closely monitor and restrict online gambling and betting activities to operators who are properly licensed.

Background

Prediction markets, such as those run by Kalshi and Polymarket, allow individuals to buy and sell contracts based on the outcome of future events, ranging from politics to financial trends. While popular in some jurisdictions, these types of platforms often face complex legal challenges due to differences in national gambling laws.

In New Zealand, gambling activity is strictly regulated, with only approved operators allowed to provide betting or gaming services. The Department of Internal Affairs oversees compliance, and in this case, determined that the prediction-based services provided by Kalshi and Polymarket were unauthorized.

What Happens Next

Following the DIA’s warning, both Kalshi and Polymarket are expected to discontinue access for New Zealand users immediately. Industry observers anticipate that authorities may continue to monitor and enforce restrictions on other unlicensed online gambling or prediction market platforms attempting to serve the country’s residents.

Sources

• SBC News

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