Date: 03.02.2025

by Sebastian Warowny

Last update: 03.02.2025 13:32

Belgium Blocks Polymarket Over Regulatory Non-Compliance

Belgium’s Gambling Authority, Kansspelcommissie, has placed the cryptocurrency-based prediction platform Polymarket on its blacklist of illegal gambling operators. The decision, effective 30 January 2025, follows the platform’s failure to comply with national gambling laws and its lack of response to repeated regulatory warnings.

Polymarket Blocked in Belgium

The Kansspelcommissie confirmed that Polymarket did not adhere to Belgium’s Gambling Act, which mandates licensing for operators offering wagering services to Belgian consumers.

After issuing three formal warnings, the regulator escalated the case to the public prosecutor’s office, requesting an IP block to restrict access to the platform.

Details regarding Polymarket’s user base in Belgium remain undisclosed, though the Authority emphasized its commitment to enforcing compliance among unauthorized operators.

Polymarket’s Rise and Global Scrutiny

Launched in 2020 by entrepreneur Shayne Coplan, Polymarket operates as a cryptocurrency-driven prediction market, allowing users to speculate on real-world events such as elections, economic trends, and cultural outcomes.

Backed by investors like Ethereum founder Vitalik Buterin and venture capitalist Peter Thiel, the platform gained traction during the 2024 U.S. presidential election, where it facilitated over $3.3 billion in bets—most favoring Donald Trump’s victory.

However, its rapid growth has drawn regulatory attention. While Polymarket claims to exclude U.S. users pending a CFTC review of its derivatives status, European authorities have increasingly scrutinized its operations.

In late 2024, France’s gambling regulator, ANJ, investigated a single $30 million wager on Trump’s election win, prompting Polymarket’s voluntary exit from the French market.

Controversy Over Prediction Markets

Polymarket positions itself as a disruptor to traditional polling, arguing that its decentralized model democratizes forecasting by aggregating crowd-sourced insights. Coplan has criticized mainstream media for perceived biases, asserting that crypto-based markets offer a transparent alternative.

Critics, however, question the platform’s integrity. They highlight concerns over unverified liquidity sources, potential market manipulation by large stakeholders, and the absence of safeguards common in regulated gambling environments. Unlike licensed betting operators, Polymarket does not disclose mechanisms to prevent insider influence or ensure fair odds calibration.

Belgium’s enforcement against Polymarket reflects a wider EU trend of tightening oversight on unlicensed gambling platforms, particularly those leveraging cryptocurrencies. A country that has also recently blocked access to Polymarket is Poland.

Regulators are increasingly distinguishing between speculative financial instruments and gambling products, with prediction markets often falling into the latter category due to their reliance on event outcomes.