Czech Republic Bans Polymarket From Its Jurisdiction

Prediction market platform Polymarket has been banned in the Czech Republic after it was classified as an unauthorised gambling operator. The Ministry of Finance has ordered internet service providers to block access to the platform, giving them 15 days to comply with the directive.

They join several others in Europe with restrictions on prediction market platforms, including France, Germany, Romania, Spain and Belgium. Similar action has also been taken in markets such as Australia, Brazil and New Zealand.

According to Czech authorities, platforms like Polymarket present themselves as financial investment services while offering products that function like betting markets. Regulators argue that only the terminology differs, with bets described as contracts and winnings as investment returns.

Europe remains divided over prediction markets regulation

This decision contrasts with the regulatory approach adopted in other jurisdictions. In the United States, prediction markets such as Polymarket and Kalshi are treated as investment products, with event contracts falling under the Commodity Futures Trading Commission’s regulation.

Gibraltar has taken a different path by introducing what it describes as the world’s first regulatory framework for prediction markets. The territory created a separate licensing regime, following license approval for prediction market platforms ADI Predictstreet and Wire Market.

Outside those jurisdictions, however, regulators question whether prediction markets should instead be treated as gambling products, given concerns around insider trading, politics, and geopolitical events.

Gambling rules must apply equally to prediction markets

Jan Řehola, Director of the Czech Institute for Gambling Regulation, welcomed the Ministry of Finance’s decision.

“Prediction markets are not harmless technological novelties. 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.

“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.

“We therefore consider the Ministry of Finance’s decision to add Polymarket to the List of Unauthorised Internet Games an important step confirming that the same rules must apply to everyone.

Regulatory approaches diverge across international markets

Řehola argued that the decision is not intended to restrict innovation but to ensure consistent regulatory standards across the gambling sector.

“This is not about banning innovation. It is about ensuring that the same rules apply to everyone who offers betting for money. Player protection, the prevention of money laundering and effective market supervision must not depend on what an operator chooses to call its product.”

While several countries classify these platforms as unlicensed gambling operators, Gibraltar has introduced a dedicated licensing framework as an alternative model for future regulation.