Author: Tim Alper

Translation: Deep Tide TechFlow

Deep Tide Guide: The Argentine traditional casino industry association and the national lottery bureau have jointly sued Polymarket, successfully persuading a Buenos Aires court to issue a nationwide blocking order — and the reason is "operating a gambling platform without a license."

This is not just a regulatory action in one country, but a standard operating procedure for traditional gambling interest groups to use existing regulatory frameworks to combat crypto prediction markets, with France and Romania having taken the lead.

The full text is as follows:

• The blocking order against Polymarket by the Buenos Aires city court applies nationwide
• Prosecutors claim Polymarket operates without a gambling license
• The Buenos Aires legislative body is discussing a proposed bill to comprehensively ban cryptocurrency gambling

The Argentine gambling regulatory body and casinos successfully persuaded the court to issue a nationwide blocking order against the crypto-driven prediction market platform Polymarket.

The nationwide blocking order from the Buenos Aires city court arose from two formal complaints from the Buenos Aires city lottery agency and the Argentine Casinos, Bingo Halls, and Affiliates Chamber (CASCBA).

The city lottery agency is a state-owned enterprise responsible for regulating, licensing, and taxing all active gambling operators within Buenos Aires. CASCBA represents Argentine land-based gambling operators, including casinos and bingo halls.

"Internet service providers have been instructed to take necessary measures to enforce the blocking order," the Buenos Aires city prosecutor's office stated, according to Argentine media Pagina 12.

The blocking occurred after external criticism of Polymarket's bets on Argentine inflation data last week — there were opinions suggesting that some users might have accessed relevant information before the official data was released.

This is yet another setback for Polymarket and other crypto prediction markets. Previously, they had faced resistance from courts and gambling regulators in the United States. In January of this year, a Massachusetts court prohibited Polymarket competitor Kalshi from operating in the state on grounds of "non-compliance" with sports betting rules.

"Unlicensed Sports Betting"

The legal cases from the city lottery agency and CASCBA revolve around the same core claim: Polymarket allows Buenos Aires residents to place bets on an unlicensed platform.

This complaint has the support of the prosecutors, who have assigned members of the specialized gambling case prosecutorial team to this case.

The prosecutors informed the court that the platform "operates as a secret online gambling system" and does not require users to complete identity or age verification.

"This means that anyone, including children and teenagers, can access the platform and start betting without any control mechanisms in place," the prosecutors stated to the court.

Cryptocurrency Gambling Controversy

Prosecutors also complained that Polymarket allows Argentine users to bet using cryptocurrency and credit cards.

In Buenos Aires, betting companies can offer cryptocurrency and credit card gambling services, but must obtain special licenses from the city lottery agency.

However, the legislative body has expressed strong opposition to companies that allow customers to gamble using credit or cryptocurrency.

Members of Congress in the Argentine capital are currently discussing a private member's proposal bill seeking to completely ban online casinos and other gambling sites from using cryptocurrency and credit cards.

Polymarket has previously faced blocking orders from courts in France, Romania, and other European countries.

The platform currently remains open for several markets related to Argentina, including the odds on whether the country will adopt the dollar before its self-imposed June 30 deadline. It also offers odds on whether President Javier Milei can complete his entire term before the 2027 elections.

Polymarket did not respond immediately to a request for comment.