In a statement, Australian Securities and Investments Commission (ASIC) Chair Sarah Court said the regulator is not currently convinced that prediction markets for retail clients are in the public interest. The contracts have the characteristics of bets: They are highly speculative and typically involve an all or nothing outcome based on a particular event. Events unrelated to investment, such as weather or sporting results, raise questions about whether the contracts are appropriately described as investment products. Potential market integrity risks include misuse of confidential information, market manipulation and disputes over how outcomes are determined. Prediction market contracts share their binary outcome structure with binary options, whose sale to retail clients ASIC banned in 2021. ASIC must consider the public interest when granting an Australian market licence. Australians accessing offshore prediction markets directly online do not have protections under Australian law. Australian financial services licensees that facilitate access to these markets remain subject to all their licence obligations under Australian law.
ASIC questions public interest of prediction markets for retail clients
Australian Securities and Investments Commission (ASIC) Chair Sarah Court said the regulator remains unconvinced that retail prediction markets serve the public interest, citing their betting characteristics and potential market integrity risks. Australians accessing offshore prediction markets directly online lack protections under Australian law. Australian financial services licensees facilitating access remain subject to all their licence obligations.