Singapore is the latest country to block access to Polymarket, a popular blockchain-based betting platform. The ban takes effect on January 12, 2025.
Another Polymarket Ban: Why it Happened
Users attempting to access Polymarket from Singapore are now greeted with a stern warning from the country’s Gambling Regulatory Authority (GRA). The notice labels the platform as an “illegal gambling site” and warns of severe penalties for those who attempt to use the platform.
The penalties include fines of up to SGD 10,000 (approximately USD 7,300), imprisonment for up to six months, or both.
The ban is the result of Singapore’s Gambling Control Act 2022, which mandates that all gambling operators targeting Singaporean residents obtain proper licensing.
Currently, Singapore Pools remains the only licensed online gambling provider in the country. It offers a limited range of betting options that do not include the type of event contracts that made Polymarket popular.
This isn’t Polymarket’s first tango with regulatory scrutiny regarding cryptocurrency-based prediction markets and betting platforms.
In 2022, the US took a hard stance against the platform. It reached a $1.4 million settlement with the Commodity Futures Trading Commission (CFTC) for operating an unregistered derivatives trading platform.
Furthermore, Polymarket agreed to cease operations in the U.S. and block American users from accessing the site.
In November 2024, the FBI raided the home of Polymarket’s CEO, Shayne Coplan, seizing his electronic devices as part of an ongoing Department of Justice investigation. This was because U.S. authorities were not convinced that Polymarket had fully complied with the terms of the settlement.
In November 2024, France’s National Gambling Authority (ANJ) blocked access to the platform. This was due to reports of an investigation into the platform for allegedly flouting local gambling laws.
The French ban is the result of a high-profile incident where a French user reportedly made over $40 million in profit betting on the outcome of the U.S. presidential election.
What this means for the Prediction Market Industry
Since 2015, Singapore authorities have blocked over 3,800 gambling websites and 145,000 transactions amounting to SGD 37 million (USD 26.9 million).
Besides significant sums of money involved in online betting, it reveals the potential tax revenue that countries might be missing out on by not regulating these markets.
It also highlights the blurred line between prediction markets and gambling sites, which presents a significant challenge for operators and regulators.
Finally, it raises important questions about the balance between economic benefits and social responsibility. This is because the legalization of online gambling leads to more irresponsible betting behavior, especially among lower-income populations.
As authorities worldwide continue to grapple with these issues, the future of Polymarket and similar platforms remains uncertain.
