Polymarket has been blocked in the Czech Republic after authorities classified the prediction market platform as an unlicensed gambling service, adding another European jurisdiction to the list of countries restricting its operations.
Summary
- Czech authorities have given internet providers 15 days to block access to Polymarket.
- Regulators said the platform must follow gambling rules regardless of how its contracts are described.
- India, Argentina and several European countries have also taken action against Polymarket.
The Czech Ministry of Finance has ordered internet service providers to block access to Polymarket within 15 days of placing the platform on the country’s list of unauthorized internet games.
Officials argued that prediction markets operate like gambling products even when they are presented as investment tools. According to the ministry’s position, the only difference is the terminology, with bets described as “contracts” and winnings presented as “returns on investment.”
The latest move follows similar restrictions introduced in France, Germany, Romania, Spain, and Belgium. Outside Europe, regulators in New Zealand, Australia, and Brazil have also taken action against prediction market platforms.
Czech authorities reject Polymarket’s investment argument
Commenting on the decision, Jan Řehola, director of the Czech Institute for Gambling Regulation, said prediction markets should not be treated differently simply because they are presented as financial products.
“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,” Řehola said.
He argued that changing the terminology does not alter the nature of the product.
“If something looks like a bet, functions like a bet, and allows people to win or lose money depending on the outcome of an uncertain event, we cannot stop treating it as gambling simply because it is called a contract,” he said.
Řehola added that the Ministry of Finance’s decision confirms that the same regulatory standards should apply to all operators offering betting products.
“This is not about banning innovation. It is about ensuring that the same rules apply to everyone who offers betting for money. Player protection, the prevention of money laundering, and effective market supervision must not depend on what an operator chooses to call its product,” he said.
Europe remains divided over prediction markets
While several European countries have classified prediction markets as gambling, Gibraltar recently introduced a separate regulatory framework for the sector instead of treating such platforms as either gambling products or financial instruments.
The framework was introduced after Gibraltar licensed prediction market operators ADI Predictstreet and Wire Market, becoming the first jurisdiction to establish dedicated rules for the industry.
The Czech decision extends a series of enforcement actions against Polymarket this year.
In May, India blocked access to the platform after the Ministry of Electronics and Information Technology directed internet service providers and VPN operators to restrict access to prediction market websites that authorities classified as illegal online money gaming platforms.
Argentina also ordered a nationwide block in May after a Buenos Aires court concluded that Polymarket operated outside the country’s gambling framework. Authorities there cited consumer protection concerns, crypto-based payments and identity verification standards among the reasons for the decision.
South Korea has taken a different approach. Earlier this month, the Broadcasting, Media and Communications Review Committee postponed any enforcement decision after deciding to hear Polymarket’s response before determining whether its service violates local gambling laws.
The company is also facing scrutiny in the United States, where the CFTC is investigating parts of Polymarket’s business, including its social media operations.
