Portugal’s gambling regulator has ordered crypto-based prediction market Polymarket to halt operations and be blocked nationwide. This action is being taken due to alleged violations of national gambling laws and a specific ban on political betting.
According to a report by Portuguese media outlet Renascença, the Gaming Regulation and Inspection Service (SRIJ) determined that Polymarket is operating illegally within Portugal. The platform reportedly lacks the necessary authorization to offer betting services. Furthermore, it facilitates wagers on political events, which are explicitly prohibited under Portuguese law.
Regulatory Action and Enforcement
The regulator confirmed that it became aware of Polymarket "very recently." A formal notice was issued on Friday, instructing the platform to cease operations in Portugal within 48 hours. Despite this order, Polymarket remained accessible in the country as of Monday. This prompted the SRIJ to prepare the next step of enforcement by notifying internet service providers to block access to the site.
Concerns Over Election Betting Activity
Regulatory scrutiny intensified following unusual trading activity observed on Polymarket’s platform related to Portugal’s presidential election markets. Renascença reported that more than €4 million was wagered in the hours leading up to the announcement of the official results. This raised significant concerns about potential insider trading and the misuse of leaked exit poll data.
Overall trading volume on the Portuguese presidential markets reportedly exceeded €110 million. This volume made it one of the platform’s most active political markets.
Legal Basis for the Order
In a statement to Renascença, the SRIJ stated that Polymarket is “not authorized to offer betting in Portugal.” The service emphasized that national legislation strictly prohibits betting on political events, regardless of whether they are domestic or international.
The regulator further added that compliance with the cease-and-desist order is mandatory. This applies irrespective of the platform’s use of cryptocurrency or its decentralized infrastructure.
Broader Regulatory Trends
This case highlights the growing regulatory pressure on crypto-based prediction markets across Europe. Authorities are grappling with platforms that operate outside traditional licensing frameworks while simultaneously attracting significant trading volumes.
The situation also underscores broader concerns surrounding market integrity, the potential for data leaks, and the need for effective regulatory oversight in politically sensitive betting markets.
As enforcement actions escalate, Portugal joins a growing list of jurisdictions moving to curb unauthorized crypto prediction platforms. This signals an intensified scrutiny of decentralized betting services operating without local approval.