Colombian Regulator Asked to Block Polymarket Prediction Market

The Colombian Federation of Games of Luck and Chance (Fecoljuegos) has asked regulator Coljuegos to shut down Polymarket, a blockchain-based prediction market that lets users place crypto bets on election outcomes.

Good to Know

• Fecoljuegos says electoral betting threatens democracy and consumer protection
• About $105,000 has been wagered on Colombian elections through Polymarket since February
• One user accounted for nearly 40% of wagers on a single candidate

In a letter to Coljuegos President Marco Hincapié, Fecoljuegos argued that Polymarket operates outside Colombian law, which only authorizes casino games, bingo, poker, and sports betting. The Federation highlighted unique risks tied to electoral betting.

“This not only constitutes an illegal operation but also poses a direct risk to democracy by opening the door to opinion manipulation, survey buying and disinformation in electoral processes,” said Fecoljuegos President Evert Cárdenas.

Data shows that just 83 users have bet on Colombian elections via Polymarket, but one account controlled almost 40% of the money backing a single candidate.

Crypto Gambling Issues

Fecoljuegos also flagged the use of cryptocurrency in betting, noting that Colombia does not permit crypto-based gambling. The Federation warned that such activity increases the chances of money laundering and limits consumer protections.

Colombian law ties regulated gaming revenue to public health programs, something illegal operators bypass. Fecoljuegos argued that licensed operators contribute responsibly while platforms like Polymarket undermine trust.

Polymarket has faced regulatory pushback before. In 2022, the platform was banned in the United States but relaunched earlier this year under compliance conditions. Despite its global profile, the Federation insists Colombian authorities must act quickly to keep electoral betting off the market.