Key Takeaways:
The Czech Finance Ministry added Polymarket to its list of unauthorized online gambling websites on July 13, requiring internet service providers to block access to the platform within 15 days under the country's Gambling Act.
"Prediction markets are not harmless technological novelties. They involve betting on real-world events, often without clear accountability to the state, without standard player-protection measures and without the rules that apply to legal gambling," Jan Řehola, director of the Institute for Gambling Regulation, said.
The ministry listed Polymarket under Section 84a(2)(a) of the Gambling Act, which applies when authorities determine a prohibited online game is being operated through a website. The Czech blacklist now includes 3,341 domains, with 1,076 added since the start of 2026, according to ministry records. Other domains in the latest update include Betify, Goldbet, PlayFortuna and several fake Sazka websites.
The action adds to an accumulating regulatory burden for Polymarket across Europe. At least nine EU jurisdictions — including France, Germany, Poland, Romania, Spain, Belgium, Greece, Portugal and the Netherlands — have restricted or blocked the platform. The European Securities and Markets Authority warned on July 3 that many prediction market contracts may already fall under the bloc's 2018 ban on binary options if they meet the definition of financial instruments.
ESMA warns on regulatory arbitrage
The ESMA warning, published July 3, said companies cannot avoid EU financial rules by marketing binary-style products as "event contracts" rather than derivatives. The assessment depends on a contract's characteristics, not how it is marketed, the regulator said. Firms offering qualifying contracts to retail investors may already be subject to national restrictions implementing the binary options ban, while those serving professional clients may need authorization under the Markets in Financial Instruments Directive.
Regulatory pressure builds beyond Europe
Polymarket and rival Kalshi have faced similar restrictions in Australia, Indonesia and Singapore outside the EU. In the US, the Commodity Futures Trading Commission maintains that prediction market contracts fall under its exclusive jurisdiction as federally regulated derivatives, while several states have targeted both platforms over allegations that their event contracts constitute illegal gambling. The dispute has produced conflicting court rulings and prompted calls for Congress to clarify whether sports and political event contracts should be regulated as gambling or as federally regulated derivatives.
Polymarket, which gained global attention during the 2024 US presidential election, did not respond to a request for comment.
This article is for informational purposes only and does not constitute investment advice.
