The Ministry of Finance of the Czech Republic has officially added the decentralized prediction platform Polymarket to the register of illegal internet games. This decision obliges all local internet service providers to restrict access to the service within 15 days. Data on the blocking has been confirmed by local sources.
Polymarket, operating on the Polygon blockchain, allows users to place bets on the outcomes of various events — from political elections to sports matches. However, according to Czech regulators, the platform's activities fall under the definition of gambling, which requires an appropriate license. Currently, Polymarket does not have such permission in the Czech Republic.
The Czech Republic has joined a growing list of European jurisdictions that have already taken similar measures. Previously, regulators in France, the Netherlands, and a number of other countries raised complaints against Polymarket over unlicensed gambling. This trend highlights the growing tension between innovative DeFi protocols and traditional legal frameworks, particularly in the gambling sector.
It is worth noting that Polymarket is not a classic gaming platform. It positions itself as a prediction market, providing data on the probabilities of events. However, European regulators consistently interpret such services as a form of gambling, which entails strict licensing requirements.
My expert opinion: This precedent is just the tip of the iceberg. European regulators continue to tighten control over cryptocurrency platforms that blur the line between financial services, betting, and entertainment. Polymarket will likely have to adapt its model or seek ways to legalize in individual jurisdictions to avoid complete fragmentation of access for European users.