Indonesia has blocked Polymarket for violating gambling laws, joining over 30 countries in restricting access to the platform.
Summary
- Polymarket has been blocked in Indonesia for violating local gambling laws.
- The government is investigating related social media accounts and may impose further restrictions on similar platforms.
- This ban adds Indonesia to the list of over 30 countries that have restricted access to Polymarket.
Indonesia's Ministry of Communication and Digital Affairs announced on Friday that Polymarket is prohibited due to its operations being classified as a gambling service. The ministry asserts that any platform allowing bets on uncertain events, regardless of its use of blockchain or cryptocurrency, falls under this definition.
Alexander Sabar, the ministry's director general for digital affairs, emphasized that Polymarket's model of speculating on uncertain outcomes breaches Indonesian law. "The government will not allow any form of online gambling in Indonesia," he affirmed in a translated statement.
This regulatory move follows the launch of a market on Polymarket concerning the potential resignation of Indonesian President Prabowo Subianto, where traders speculated on his likelihood of leaving office, with over $51,000 in trading volume recorded. Estimates suggested a mere 1% chance of resignation by May 31 and an 11% chance by the end of 2026.
In addition to blocking Polymarket, Indonesian authorities are closely monitoring related social media accounts to enforce further access restrictions on platforms that may enable online gambling.
Challenges for Prediction Markets
The ban in Indonesia is part of a broader regulatory crackdown in Asia, with countries like Taiwan, Thailand, China, and Japan already imposing their own restrictions on the platform. India is also moving towards blocking both Polymarket and its competitor Kalshi.
Globally, prediction markets are facing heightened regulatory scrutiny, with more than 30 nations having banned Polymarket to date.
In the U.S., prediction markets have become a contentious issue between state regulators and the Trump administration over regulatory authority. Minnesota has recently banned prediction markets and is facing a lawsuit from the CFTC and the Department of Justice.
CFTC Chair Michael Selig has stressed the need for clear regulatory guidelines for prediction markets to prevent them from relocating offshore and to avert failures akin to FTX. However, he has received bipartisan pushback, with lawmakers voicing concerns over the potential for insider trading on these platforms.
