Polymarket joins the ranks of Portuguese regulated countries, deepening global spread

Blockchain-based prediction market Polymarket has been ordered to withdraw from another country in Europe. The Portuguese Gaming Regulation and Inspection Service (SRIJ) recently discovered that the volume of bets related to the presidential election exceeded 103 million euros and ordered Polymarkets to suspend domestic services within 48 hours.

Portuguese authorities sanction polymarket bets that exceeded 100 million euros

Ahead of the Portuguese presidential election on January 18, bets on political events on the Polymarket platform have skyrocketed. According to the regulator’s announcement, the amount of betting related to the election reached about 130 million euros (about $120 million). This was a clear violation of the ban on political betting in Portugal.

SRIJ pointed out that Polymarkets did not hold any license to provide betting services in Portugal and was operating illegally in defiance of local laws. Regulators have invoked administrative measures to force immediate service outages and have also suggested the possibility of issuing access orders to Internet Service Providers (ISPs) if necessary.

Portugal’s ban on political betting, why is it strict

Portugal’s online gambling law, which came into effect in 2015, explicitly prohibits betting on domestic and international political events. Under the current law, bets are limited to three types: sports, horse racing, and casino games. The reason why political betting is explicitly regulated is due to concerns that it could undermine the fairness of elections.

Polymarket is a prediction market in the form of users buying prediction shares for various real events such as politics, sports, and social issues. This characteristic came into direct conflict with Portugal’s strict policy of banning political betting.

Global regulation of poly markets spreads, now exceeding 30 countries

Portugal’s actions are by no means isolated events. Polymarket has been restricted or completely blocked from access in more than 30 countries so far. Regulated countries include Singapore, Russia, Belgium, Italy, and Ukraine.

The regulatory methods of each country are different. Countries such as Belgium have taken tough steps by blacklisting the platform itself. On the other hand, France is maintaining a centrist stance by allowing local users to access only in view-only mode. Ukraine officially blocked Polymarket on January 13 in order to expand online gambling regulations.

Prediction Market Regulatory Nuances, Kalsi and Myriad are also within the sphere of influence

Interestingly, other prediction market platforms such as Kalshi, Myriad, and Limitless are also accessible in Portugal. However, considering that the pace of regulatory promotion of poly markets is accelerating, the possibility of expanding the scope of related regulations cannot be ruled out.

Launched in 2020, Polymarket is the most widely recognized platform among prediction markets based on blockchain technology. The reason why regulators prioritize polymarkets over other prediction markets seems to be because of this high awareness and scale of utilization.

Polymarket regulation that goes to ISP blocking

Currently, Polymarket is still accessible in Portugal, but it is likely that SRIJ will soon issue an ISP blocking order. This means tightening regulations at the technical level. If it is not possible to force the website itself to stop operating, it suggests a shift to blocking access at the level of domestic Internet infrastructure.

Portugal’s move demonstrates the severity of the challenges facing polymarkets amid global regulatory trends. The tension between the openness of prediction markets and the desire for control by regulators is expected to continue.