US-based prediction markets, such as Kalshi and Polymarket, are gaining traction by allowing users to place bets on Australian elections and specific statements made by Prime Minister Anthony Albanese. These platforms, while illegal for Australian residents, can be accessed through virtual private networks (VPNs), raising concerns among gambling harm advocates and regulators about potential negative impacts on Australian society. Martin Thomas, CEO of the Alliance for Gambling Reform, expressed fears that this trend could lead to significant gambling issues, with regulators struggling to keep pace with emerging platforms. Trading on these markets has surged, with Kalshi reporting nearly $500,000 in bets on the Farrer byelection and Polymarket hosting markets related to Albanese's parliamentary language. The Australian Communications and Media Authority (ACMA) has previously blocked Polymarket for operating without a valid license and is now monitoring the situation, although no formal investigations into other operators have been initiated. The Australian Securities and Investments Commission (ASIC) has cautioned that these prediction markets pose significant risks to retail investors. The government is preparing reforms to enhance regulations and block illegal gambling sites, aiming to protect consumers and maintain market integrity.