Portuguese gambling regulatory authority issues urgent operational suspension order to prediction market Polymarket

Portugal’s gambling regulatory authority SRIJ has taken enforcement action against the blockchain-based prediction market Polymarket. They ordered all services to cease within Portugal within 48 hours, reflecting a tightening of domestic gambling regulations.

Regulatory action triggered by €103 million betting volume

The move was prompted by a betting frenzy surrounding the January 18 Portuguese presidential election. Bets on the election outcome on the Polymarket platform surged past €103 million (approximately $120 million). More than just a number, this indicates that regulatory authorities cannot ignore large-scale betting on real-world political events.

Portuguese gambling law strictly prohibits political betting

Portuguese law clearly defines the scope of gambling licenses. SRIJ pointed out that Polymarket does not hold a Portuguese gambling license, emphasizing that only sports, casino games, and horse racing bets are permitted under domestic regulations. Betting on real-world event outcomes like elections is strictly prohibited, and Polymarket was found to be in violation. This reflects the regulatory authority’s intent to clearly delineate legal boundaries beyond a simple licensing issue.

ISP blocking imminent, Polymarket’s expansion in Europe faces hurdles

Currently, Portuguese users can still access Polymarket, but the next step from regulators is likely to be more stringent. SRIJ may require internet service providers (ISPs) to block access to the platform. If that happens, users will only be able to access via VPN bypasses. This move by Portugal exemplifies the broader trend of tightening regulation on crypto assets and blockchain-based financial services in Europe, which could hinder Polymarket’s expansion strategy in the region.