The Czech Republic has ordered internet service providers to block access to Polymarket after the prediction market platform was added to the country’s blacklist of unauthorized online gambling websites.
The Czech Finance Ministry placed Polymarket on the official list on Monday, giving internet service providers 15 days to restrict access to the platform.
Polymarket Added to Czech Gambling Blacklist
The Finance Ministry classified Polymarket’s website under the Czech Gambling Act, which prohibits companies from offering online gambling services to users in the country without the required authorization.
Under Czech law, internet service providers must block websites included on the ministry’s blacklist within 15 days of their publication.
Polymarket allows users to trade contracts based on the outcomes of future events, including elections, economic developments, sports and global news.
The platform attracted significant international attention during the 2024 US presidential election, when its markets were frequently used as an indicator of changing election sentiment.
Polymarket did not immediately respond to a request for comment.
Prediction Markets Face Restrictions Across Europe
The Czech Republic is not the first European country to take action against prediction markets.
Polymarket and rival platform Kalshi have faced regulatory restrictions in several European Union countries, including:
- France
- Germany
- Poland
- Romania
- Spain
Authorities in these jurisdictions have raised concerns that certain event-based contracts may qualify as unauthorized gambling products or regulated financial instruments.
The Czech decision adds to the growing legal pressure facing prediction market platforms operating across Europe.
ESMA Warns Event Contracts May Be Binary Options
Regulatory scrutiny intensified on July 3, when the European Securities and Markets Authority, or ESMA, warned that many prediction market contracts could fall under existing EU restrictions on binary options.
According to ESMA, companies cannot avoid European financial regulations simply by describing binary-style products as “event contracts” rather than derivatives.
The classification depends on the structure and characteristics of each contract, not the terminology used to promote it.
Contracts that meet the definition of financial instruments and are offered to retail investors may already be covered by national restrictions implementing the European Union’s 2018 binary options ban.
Companies offering qualifying products to professional clients may also require authorization under the Markets in Financial Instruments Directive II, commonly known as MiFID II.
Global Regulators Increase Pressure on Prediction Markets
Prediction market regulation is also expanding beyond Europe.
Authorities in Australia, Indonesia and Singapore have taken action against platforms offering event-based contracts, often arguing that the services operate as unlicensed gambling businesses.
In the United States, Polymarket and Kalshi have faced challenges from regulators in several states over allegations that contracts linked to political events and sports outcomes constitute illegal gambling.
However, the Commodity Futures Trading Commission, or CFTC, maintains that qualifying event contracts fall under its exclusive federal jurisdiction as regulated derivatives.
US Courts Deliver Conflicting Decisions
The disagreement between state gambling regulators and federal derivatives authorities has resulted in conflicting court rulings.
The legal uncertainty has also prompted calls for the US Congress to clarify how political, sports and other event contracts should be regulated.
The central question is whether prediction market contracts should be treated as:
- Traditional gambling products regulated by individual states
- Federally regulated derivatives overseen by the CFTC
Until clearer legal frameworks are introduced, prediction markets are likely to remain under growing regulatory pressure in both Europe and the United States.
What the Czech Polymarket Block Means
The Czech Republic’s decision shows that regulators are increasingly examining prediction markets through both gambling and financial-services laws.
For Polymarket, inclusion on the Czech gambling blacklist means local users may soon be unable to access the platform through domestic internet providers.
More broadly, the move highlights the challenge prediction markets face as authorities attempt to determine whether event contracts represent gambling, derivatives trading or a combination of both.
