Colombian Gambling Authority Orders ISPs to Block Polymarket
Coljuegos Enforces Access Ban on Polymarket
Colombia’s gambling regulator, Coljuegos, has mandated local internet service providers to restrict access to the prediction platform Polymarket. This directive comes amid concerns over unauthorized betting activities centered on electoral events conducted through the platform.
Regulatory Concerns Over Polymarket’s Operations
Coljuegos argues that Polymarket’s political prediction markets conflict with national regulations. The platform is accused of running unauthorized financial wagering activities involving cryptocurrencies, which the authority says could compromise funding for state healthcare supported by regulated gambling operations. According to Coljuegos’ president, Marco Emilio Hincapié, Polymarket lacks the official licenses required to offer online gambling services in Colombia.
While Polymarket describes itself as a future event forecasting service, Coljuegos states that its functions bear the hallmarks of gambling—financial risk, potential prizes, and uncertainty of outcome—thereby falling under Colombia’s gambling laws. The state maintains a monopoly on games of chance, and any betting must be authorized by Coljuegos.
Background and Recent Legal Developments
Established in 2020 as a decentralized platform operating on the Polygon blockchain using USDC stablecoins, Polymarket has often navigated unclear regulatory environments worldwide. In 2022, Polymarket reached a settlement with the US Commodity Futures Trading Commission (CFTC), which led to restricted access for users in the United States. However, following recent compliance efforts, the CFTC approved Polymarket’s relaunch in the US market.
Current Gambling Landscape in Colombia
Despite Polymarket’s block, Colombia’s gambling market remains robust and stable. Revenue is forecasted to reach approximately COL 9.2 trillion (around $2.28 billion) by 2025, with an annual growth rate of 1.48% expected through 2030, pushing total market value to nearly COL 9.9 trillion ($2.45 billion). The casino segment alone is projected to account for COL 9.2 trillion ($2.28 billion) in revenue by 2025, with the user base anticipated to grow to 8.5 million by 2030.
Coljuegos has actively targeted illegal gambling by ordering the blockage of more than 28,100 unauthorized betting websites, with plans to further increase this number by approximately 3,000. These enforcement actions aim to protect the legal gambling sector, which has contributed over COL 256.7 billion (about $654 million) to Colombia’s subsidized healthcare system.
