Romania Blacklists Polymarket as Illegal Gambling

Romania's National Gambling Office (ONJN) has blacklisted decentralized prediction market Polymarket, classifying its blockchain-based outcome betting as unlicensed gambling under national law. The decision, announced on November 3, underscores escalating regulatory scrutiny on crypto-enabled gaming platforms across the European Union. Polymarket, built on Polygon with support for USDC stablecoin settlements, now faces access blocks for Romanian users, prompting broader discussions on compliance for Web3 gambling tools.

• Operators: Platforms must integrate geoblocking and KYC tools to navigate fragmented EU rules, potentially increasing costs by 20-30% for multi-jurisdictional setups.
• Players: Access restrictions in crypto-friendly markets limit options, pushing users toward licensed alternatives with slower settlement times.
• Regulators: The ruling highlights the gaps in MiCA's definition of DeFi gambling, urging the development of harmonized frameworks to strike a balance between innovation and consumer protection.

The blacklist stems from ONJN's determination that Polymarket's peer-to-peer wagers on real-world events—such as elections or sports—constitute gambling, regardless of underlying blockchain technology. Polymarket operates as a non-custodial protocol, where users stake USDC on yes/no outcomes via smart contracts on Polygon's proof-of-stake network, enabling near-instant settlements in under two seconds at fees of less than $0.01. This contrasts with traditional fiat betting, where banks impose delays of days and higher charges. However, Romanian authorities view the mechanism as equivalent to odds-based wagering, citing the country's 2016 Gambling Law, which requires operator licensing and mandatory player verification.

Implementation details reveal Polymarket's technical edge: transactions settle atomically on-chain, verifiable via Polygon explorer (e.g., contract address 0x... for core markets), reducing fraud risks through immutable ledgers. Yet, the platform's pseudonymous nature—allowing wallet connections without full identity checks—clashes with EU anti-money laundering directives under the 5th AMLD, which mandate transaction monitoring for gambling exceeding €2,000. Romania's move aligns with similar actions in France and Belgium, where authorities have fined or blocked prediction markets for lacking territorial licenses.

Geographically, the impact ripples across Eastern Europe, a hub for crypto adoption, with over 15% of Romanians holding digital assets, according to 2025 Chainalysis data. Curacao- and Malta-licensed casinos, common gateways for EU players, now face pressure to audit Web3 integrations. Compliance implications include mandatory reporting to ONJN within 30 days for any residual access, with fines up to €100,000 for non-compliance. For operators, this accelerates the adoption of zero-knowledge proof identity tools, such as those from zkSync, to enable compliant anonymity.

Market effects are twofold: a short-term user exodus could slash Polymarket's EU volume—estimated at 10% of its $ 1 billion+ monthly trades—while spurring innovation in hybrid models. Timeline-wise, the blocks took effect immediately on November 3, with appeals possible within 15 days; however, precedents suggest low success rates. User experience benefits from Polymarket's low fees persist for unaffected regions like Australia and Gibraltar, where regulators classify it as derivatives trading. Chosen for its scalability, Polygon integration highlights a trade-off between speed and regulatory opacity in gambling contexts.

This development signals a shift for crypto casinos toward jurisdiction-specific licensing, enhancing trust but potentially curbing the promise of decentralization.

Sources: One Safe Blog, ONJN Official Announcement