New Zealand has declared Kalshi and Polymarket illegal under existing gambling laws, even while Parliament advances a bill to auction 15 online casino licenses and the market remains limited to a single online wagering monopoly.
Online wagering in New Zealand is currently available only through the TAB platform, which operates under a monopoly arrangement following Entain’s takeover of its day-to-day operations.
At the same time, the Online Casino Gambling Bill is making its way through Parliament. The legislation provides for the auction of 15 online casino licenses. Operators have already been invited to register ahead of the planned launch.
Under existing law, online gambling in New Zealand is divided into two categories: online wagering and online casinos. This structure was put in place when the Entain agreement was reached.
Against that backdrop, the Department of Internal Affairs (DIA) has determined that prediction market operators, including Kalshi and Polymarket, are unauthorized and therefore illegal under current gambling legislation.
The DIA said prediction market operators cannot offer what it considers gambling products to New Zealand residents under existing laws.
“Since they aren’t authorized operators, they are prohibited from offering their gambling products to people in this country. 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,” said Department of Internal Affairs Gambling Director, Vicki Scott.
The regulator has not yet notified Polymarket or Kalshi of its decision. New Zealand does not currently geoblock gambling websites, and the country does not appear on either platform’s list of restricted jurisdictions. As a result, both platforms remain accessible unless they independently block New Zealand users.
For prediction markets and similar firms offering sports-event contracts, their platforms are likely to fall outside the existing legislative net tied to the current framework.
New Zealand’s determination follows action taken in Australia earlier this month. Australia’s gambling regulator, the Australian Communications and Media Authority (ACMA), concluded that prediction market platforms constitute gambling.
Documents obtained through a freedom of information request by Crikey show ACMA made that determination, a decision expected to have ramifications for Australia’s gambling sector.
Following the ruling,Australia banned Polymarket from operating in the country and directed internet service providers to block access to the platform for Australian residents.
ACMA found that Polymarket had not blocked Australian IP addresses. Staff members accessed the site, were not asked to verify their location and were able to place bets. The regulator’s report stated that approximately 1.9 million visits were made to the platform from Australia between November 2024 and May 2025.
Although access has been restricted, Australians may still reach the platform through workarounds, including VPNs.
The parallel positions in New Zealand and Australia place prediction market operators under regulatory scrutiny in both jurisdictions while New Zealand proceeds with structural changes to its online casino licensing regime.
Original article: https://www.yogonet.com/international/news/2026/02/17/117637-new-zealand-declares-prediction-markets-illegal-while-15-casino-licenses-advance
