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The Colombian Federation of Gaming Entrepreneurs (Fecoljuegos) formally requested the country’s gaming regulation agency Coljuegos to ban American cryptocurrency prediction market Polymarket right away. Polymarket is the target of criticism for taking online bets on the result of Colombian elections, specifically the 2026 presidential election. The platform enables users to bet on any type of political, economic, and social event worldwide, utilizing digital currency, which Fecoljuegos believes constitutes an illegal operation in Colombia.
According to Fecoljuegos, the national gaming law only permits regulated gambling games such as casino games, roulette, bingo, poker, and betting on real sporting events. Political betting, as advocated by Polymarket, is widely beyond the scope of such regulation. Thus, Fecoljuegos asserts that the platform’s activities constitute an offense subject to a punishment under the law, at administrative, legal, and even criminal levels.
Possible Threats to Democracy
Evert Montero Cárdenas, Fecoljuegos President, highlighted that the platform not only operates illicitly but also jeopardizes the democratic process directly. Election outcome betting can pose opportunities for influencing public opinion, purchasing polls, and disseminating false information. This can undermine the transparency of the election and erode individuals’ trust in democratic institutions. Fecoljuegos recommends that unauthorized platforms can affect electoral dynamics in unanticipated ways, compromising transparency and accountability.
Financial and Consumer Protections
Polymarket operates exclusively with cryptocurrencies, not legalized in Colombia for gambling or gaming use. This raises serious concerns of traceability, anti-money laundering (AML) compliance, and consumer protection. Fecoljuegos stressed that the use of cryptocurrencies for such ends undermines regulatory oversight, potentially increasing the risk of illegal practices and financial risk. In addition, the lack of local authorization prevents consumer protection from being enforced, and Colombian players are exposed to financial losses without any recourse under the law.
Fecoljuegos urged Coljuegos and other authorities concerned to take immediate action to ban Polymarket and prevent illegal political gambling. The federation highlighted that consumer protection, the credibility of Colombia’s gaming market, and clean electoral processes were all at stake. “We cannot allow unregulated platforms to ruin citizen trust or steal money that can benefit the country“, added Montero Cárdenas.
Implications for the Colombian Gaming Industry
The case is indicative of the broader challenges regulators encounter in a more globalized and digitalized gambling market. Platforms like Polymarket fall beyond the traditional regulatory regime, leveraging cryptocurrency and global internet technology to provide local customers. For Colombia, the case highlights the necessity of effective means of regulation as a way to safeguard the regulated gaming market as well as democratic institutions. It also reflects ongoing attempts by government agencies and industry groups to ensure transparency, legality, and customer protection in an evolving environment.
Fecoljuegos‘ action is a preemptive measure to reinforce Colombia’s legal boundaries, keeping the country’s gaming ecosystem within its current parameters and stopping illegal activities from affecting the market as well as the democratic process.
Source: YogoNet
