Colombia orders ISPs to block Polymarket: gambling regulator cracks down on unlicensed crypto betting

Colombia’s gambling regulator Coljuegos has taken action against blockchain-based prediction platform Polymarket, ordering internet service providers (ISPs) to block access in the country. Officials argue that Polymarket operates as an unlicensed gambling site, which undermines Colombia’s regulated market.

Why Polymarket is targeted

Polymarket promotes itself as a decentralized prediction market built on the Polygon blockchain and using USDC stablecoin. Users place bets on the outcomes of real-world events — from elections to sports. According to Coljuegos, this qualifies as gambling: players risk money on uncertain outcomes for financial gain. In Colombia, all such activity must be licensed and regulated.

Regulatory background

Coljuegos has been increasing pressure on unlicensed operators. By 2025, the regulator had blocked over 28,100 illegal gambling sites and announced plans to add more than 3,000 additional domains to the blacklist. Authorities stress that legal operators contribute gambling tax revenues to healthcare, sports, and culture, while unlicensed platforms divert funds abroad.

Potential market impact

The Colombian online gambling sector is growing rapidly, with projected revenues of 9.2 trillion pesos (~$2.28 billion) in 2025 and an expected 8.5 million users by 2030. By banning Polymarket, regulators signal that decentralized platforms will be treated the same as traditional illegal operators.

International context

Polymarket is no stranger to regulatory clashes. In the United States, the Commodity Futures Trading Commission (CFTC) fined the company in 2022 and forced it to restrict certain markets. Now, Colombia joins the list of countries limiting its operations.

What it means for players and operators

For Colombian users, access to Polymarket will be cut. For the broader industry, the message is clear: crypto-based prediction markets are on regulators’ radar. Companies must adapt, either by obtaining licenses or risk exclusion from growing markets like Colombia.