Portugal Takes Strong Action Against Polymarket Amid Political Betting Expansion

Portugal Gambling Regulator Takes Strong Action Against Polymarket Platform After Massive Transaction Activity Related to Recent Presidential Election. This decision marks a new momentum in the global effort to control the expansion of blockchain-based prediction markets across various jurisdictions.

SRIJ Action: 48-Hour Service Shutdown for Polymarket

Serviço de Regulação e Inspeção de Jogos (SRIJ), Portugal’s gambling regulatory authority, has instructed Polymarket to cease operations within 48 hours. This order was issued after the platform facilitated over €103 million (equivalent to $120 million USD) in bets related to the January 18 presidential election.

According to the regulator’s official statement, Polymarket does not hold a license to offer gambling services in Portugal and is therefore operating illegally. SRIJ emphasizes that under the 2015 online gambling law, only bets on sports, casino games, and horse racing are permitted. All forms of betting related to political events—both domestic and international—are explicitly prohibited by national law.

Major Investment in Presidential Election Triggers Regulatory Response

The staggering transaction volume during the recent election became the main catalyst for Portugal’s regulatory intervention. The total €103 million wagered through Polymarket indicates high local user interest in the platform, while also exposing gaps in existing enforcement.

Prediction markets like Polymarket allow users to buy shares on the likelihood of various real-world events, including election outcomes, sporting events, or geopolitical developments. This mechanism, which differs from traditional gambling, makes the platform attractive to many users but also raises regulatory concerns in various countries.

Polymarket Faces Restrictions in Over 30 Countries

Portugal’s situation is part of a global wave of restrictions against Polymarket. Launched in 2020, the platform now faces hurdles in more than 30 jurisdictions, including Singapore, Russia, Belgium, Italy, and recently Ukraine. Regulatory responses vary from total bans to limited access restrictions.

In Belgium, Polymarket has already been blacklisted for blocking. A different approach is taken in France, where local users can still access the platform but only in “read-only” mode, preventing new transactions. Portugal’s regulator is likely to soon instruct internet service providers to block access to Polymarket’s website within their territories.

The Evolving Global Regulatory Landscape for Prediction Markets

This regulatory turmoil reflects broader challenges in regulating blockchain-based financial innovation. While prediction markets are proposed as tools for forecasting and price discovery, regulators in various countries are concerned about potential misuse for illegal gambling and political speculation.

Alternative prediction platforms such as Kalshi, Myriad, and Limitless are also currently accessible in Portugal, though their legal status remains unclear. As the blockchain ecosystem grows, governments continue to adjust their regulatory frameworks to address new products and services.

The Portugal case demonstrates that although blockchain technology enables rapid innovation, global adoption and expansion are still hindered by differing regulations across jurisdictions. For platforms like Polymarket, the future challenge is to find operational models that can adapt to diverse legal requirements or focus on markets with more permissive laws.