ASIC questions whether retail prediction markets serve the public interest

Australia’s corporate regulator has warned that retail prediction markets may not be in the public interest, saying their all-or-nothing structure and focus on events such as weather and sport make them resemble wagers rather than investments. In a statement posted on Friday , Australian Securities and Investments Commission (ASIC) chair Sarah Court said the products shared features with binary options, which are banned for retail clients in Australia. She also cautioned that offshore platforms do not provide direct users with protections under Australian law. Australian licence holders that facilitate access to those platforms must still meet their regulatory obligations.