Australia's corporate regulator has said it is not currently convinced that prediction markets for retail clients serve the public interest. ASIC chair Sarah Court compared their all-or-nothing event contracts with binary options, which are prohibited for retail customers in Australia.
The ASIC statement says many contracts concern sport, weather or other events unrelated to conventional investment. The regulator also points to risks involving confidential information, market manipulation and disputes about how an event is resolved.
ASIC did not announce a new prohibition or enforcement action. Its position instead signals the high public-interest test that a proposed financial-market licence would face. The agency said Australian financial-services licensees that facilitate access to overseas prediction markets remain subject to their existing legal obligations.
ASIC's Moneysmart guidance says no prediction market is currently licensed as a financial market in Australia. It warns that retail users of offshore platforms may lack local dispute-resolution and client-money protections. The statement therefore clarifies the regulator's policy stance while leaving any future licensing decision to a formal application and assessment.
