Polymarket Faces Bans in Portugal and Hungary

Polymarket, the decentralized crypto-based prediction market platform, has been blocked in Portugal and Hungary following regulatory determinations that its event-contract trading constitutes unauthorized gambling. The Portuguese Gaming Regulatory Authority (SRIJ) and Hungary’s Supervisory Authority for Regulated Activities issued the restrictions, citing a lack of licensing and prohibitions on betting related to political events. The moves underscore growing European regulatory pressure on blockchain-enabled betting products.

Key Takeaways

• Prediction markets using cryptocurrency and smart contracts are increasingly classified as gambling by EU regulators, creating precedent risks for similar crypto casino models.
• Operators in or targeting European markets may need stronger geo-fencing and compliance measures to avoid enforcement actions.
• The bans highlight the clash between decentralized finance innovation and national consumer protection frameworks for gambling.

Polymarket enables users to buy and sell outcome shares on real-world events—ranging from elections to sports and economic indicators—settled automatically via smart contracts on the Polygon network, primarily using USDC. While the platform frames its product as an informational market or a financial derivative, regulators in both countries have ruled it illegal under existing betting laws.

Portugal’s SRIJ confirmed the platform operates without the required authorization and violates rules banning wagers on political or non-sporting events. Hungarian authorities imposed a temporary block, describing the service as unlicensed gambling, with the possibility of permanent restrictions after further investigation.

These actions carry broader significance for the crypto gambling sector. Many licensed crypto casinos (often under Curacao, Anjouan, or Malta frameworks) rely on similar blockchain mechanics—provably fair RNG via smart contracts, near-instant low-fee settlements, and wallet-based play. However, jurisdictions enforcing strict gambling monopolies or licensing regimes view any real-money staking on uncertain outcomes through a gambling lens, regardless of whether the underlying technology is decentralized.

Polygon’s selection provides users with sub-second confirmations and fees typically under $0.01, delivering a superior experience compared to the Ethereum mainnet. Yet regulatory decisions prioritize player protection, AML/KYC enforcement, and state revenue over technological advantages. Affected users in the two countries now face access blocks, potentially driving them toward VPNs or exclusion from legitimate licensed operators.

No immediate spillover to pure casino platforms has been reported, but the precedent may encourage other EU member states to scrutinize De-Fi-integrated gambling products more closely. Operators are advised to review geo-restriction tools and consider partnerships with regulated on-ramp providers that enforce stricter jurisdictional controls.

Sources: Decrypt