The Czech Ministry of Finance has officially listed the decentralized prediction market platform Polymarket as an unauthorized internet game, directing internet service providers to restrict access to the site within 15 days, in accordance with national law.
This decision, announced on Tuesday, reflects the Czech Republic's alignment with an expanding European regulatory trend focused on prediction markets.
In its statement, the Ministry confirmed that Polymarket's operations qualify as unauthorized gambling under Czech legislation. Notably, it cited projections that suggest Polymarket could manage approximately $220 billion in volume by 2025, translating to a monthly turnover between $10 billion and $11 billion. Such significant figures have spurred regulators to call for formal oversight.
Concerns around prediction markets being classified as gambling center on two main issues, which were highlighted by both regulators and academics. The Czech trade organization, the Institute for Gambling Regulation, pointed to potential risks, including outcome manipulation and the misuse of non-public information.
Jan Řehola, the Institute's director, stressed that any product functioning as a betting mechanism should be regulated accordingly. He stated, "They involve betting on real-world events, often without clear accountability to the state, without standard player-protection measures and without the rules that apply to legal gambling." He further asserted, "If something looks like a bet, functions like a bet and allows people to win or lose money depending on the outcome of an uncertain event, we cannot stop treating it as gambling simply because it is called a contract."
The issues are compounded by Polymarket’s decentralized, blockchain-based structure, which emphasizes unrestricted access and minimal user identity verification. Řehola indicated that the decision to block such platforms aims to "ensure that the same rules apply to everyone who offers betting for money." He concluded, "Player protection, the prevention of money laundering and effective market supervision must not depend on what an operator chooses to call its product."
Recent years have seen regulators in multiple countries, including Germany, Belgium, Romania, Switzerland, Poland, Greece, Cyprus, Portugal, Spain, and Ukraine, restrict or block Polymarket’s access for consumers.
In the Netherlands, the Kansspelautoriteit (KSA) mandated that the platform cease operations by February 17. Although Polymarket did not comply with this deadline, it has filed an appeal but is currently facing sanctions from the regulator. According to Dutch gambling regulations, both "event betting," which encompasses wagers on political events and other non-sport outcomes, and traditional sports betting require licensing.
In June, nine European regulatory bodies initiated a collective effort to intensify action against unlicensed prediction markets. In a joint statement, these authorities highlighted the consumer protection and market integrity risks associated with platforms operating without local gambling licenses.
