Czech Finance Ministry Blacklists Polymarket, Orders ISPs to Implement Access Restrictions
Internet service providers in the Czech Republic have been instructed to block Polymarket after the Finance Ministry designated it as an unlicensed gambling platform, with a 15-day implementation deadline.
On Monday, the Czech Republic's Finance Ministry placed Polymarket on its official roster of unlicensed online gambling platforms, mandating that internet service providers (ISP) implement access blocks.
The prediction market platform's website was included under provisions of the nation's Gambling Act, which prevents operators from providing online gambling services without proper licensing to residents of the Czech Republic.
According to the Gambling Act's requirements, ISPs are obligated to implement blocking measures for any websites appearing on the ministry's official blacklist within a 15-day window following the announcement of the listing.
Polymarket operates as a prediction market platform enabling users to purchase and sell contracts linked to potential outcomes of upcoming events. The service attracted worldwide recognition throughout the 2024 United States presidential election cycle, as its prediction markets were frequently referenced as indicators of electoral sentiment and forecasting.
Both Polymarket and its competitor Kalshi have encountered regulatory barriers from authorities throughout the European Union, with restrictions implemented in countries such as France, Germany, Poland, Romania and Spain.
At the time of publication, Polymarket had not provided a response to Cointelegraph's inquiry seeking comment on the matter.
Prediction markets face watchdog scrutiny beyond Europe
Regulatory authorities across multiple jurisdictions have taken the position that certain prediction market contracts constitute forms of unlicensed gambling activities or are subject to current financial market regulatory frameworks.
The European Securities and Markets Authority (ESMA) issued a warning on July 3 stating that numerous prediction market contracts may already be covered by current restrictions on binary options provided they satisfy the criteria for classification as financial instruments.
According to the regulator, companies offering binary-style products cannot circumvent EU financial regulations merely by branding them as "event contracts" instead of derivatives. ESMA emphasized that the determination is based on the actual characteristics of a contract rather than its marketing presentation, noting that organizations offering such contracts to retail investors may already be operating under national restrictions that implement the European Union's 2018 prohibition on binary options.
Additionally, ESMA indicated that companies providing these products to professional clients may require proper authorization under the Markets in Financial Instruments Directive, commonly known as MiFID II.
Beyond European borders, prediction market platforms have encountered comparable regulatory measures in jurisdictions including Australia, Indonesia and Singapore.
Within the United States, both Kalshi and Polymarket have become targets of regulatory enforcement actions from authorities in multiple states based on claims that their event-based contracts represent forms of illegal gambling, meanwhile the Commodity Futures Trading Commission asserts that these products fall within its sole regulatory authority as federally supervised derivatives.
This ongoing disagreement has led to contradictory judicial decisions and generated demands for Congressional intervention to provide clarity on whether contracts based on sporting events and political outcomes should be classified and regulated as gambling activities or as federally regulated derivative instruments.