New Zealand’s gambling regulator has classified prediction market platforms Kalshi and Polymarket as illegal for local users under the country’s existing gambling framework. The Department of Internal Affairs (DIA) says these operators are not authorized to offer what it considers gambling products to New Zealand residents.

DIA Gambling Director Vicki Scott said: “Since they aren’t authorized operators, they are prohibited from offering their gambling products to people in this country”. She added that platforms taking bets from New Zealand customers “are breaching the law” and “can expect to hear from us”.

Why the decision matters right now

The announcement lands during a wider reshaping of New Zealand’s online gambling landscape. Online wagering is currently available only through the TAB platform, operating under a monopoly arrangement after Entain took over day-to-day operations.

In parallel, lawmakers are progressing the Online Casino Gambling Bill, designed to introduce a regulated online casino market via an auction for 15 licences, with operators already invited to register ahead of the planned launch.

What happens next for players and operators

At the moment, access may not change overnight. The DIA said it had not yet notified Kalshi or Polymarket of its determination, and New Zealand does not currently geoblock gambling websites meaning both platforms can remain reachable unless they restrict New Zealand users themselves.

The move also aligns New Zealand with a growing regional posture toward prediction markets. Australia’s regulator (ACMA) has treated similar platforms as illegal online gambling and has used ISP blocking as an enforcement tool, including action involving Polymarket.

Source: https://www.yogonet.com/international/news/2026/02/17/117637-new-zealand-declares-prediction-markets-illegal-while-15-casino-licenses-advance