Portugal Orders Polymarket to Cease Activity in 48 Hours Amid Rising Scrutiny

The gambling regulator in Portugal directed Polymarket to exit its territory in 48 hours after the gambling platform registered a significant influx of political betting associated with the presidential election on Sunday. 

According to Rádio Renascença, bets on the Jan. 18 vote were in excess of €103 million ($120 million), which led to immediate regulatory action and an official enforcement reaction of the government.

The Serviço de Regulação e Inspeção de Jogos (SRIJ) declared that Polymarket is not licensed to operate in Portugal. It explained that the site is providing betting services unlawfully. The regulator emphasized that the national law prohibits political betting and that it does not fit in any of the allowed categories.

Polymarket’s Conflict With Local Law

Polymarket is a prediction market based on blockchain. It allows users to purchase and submit shares based on actual events in the real world. These events include political, sports, and other developments from around the world, and they operate with changing probabilities that reflect user involvement.

In Portuguese law, it is illegal to bet on political results. The country’s 2015 online gambling industry exclusively allows wagers on sports, casinos, and horse racing. SRIJ asserted that the current regulation cannot sustain Polymarket’s activity, as it contradicts this framework.

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The regulator issued an official notice to Polymarket on Friday. It provided the platform with 48 hours to discontinue operations within Portugal. By Monday the site remained open, and SRIJ was considering further measures to ensure compliance.

SRIJ Responds to Election Bet Surge

SRIJ also claimed that it instructed local internet service providers to block access when Polymarket does not stop its activities. The agency further stated that ongoing availability does not imply official approval and recognition. It stressed that enforcement measures will increase when necessary.

This increase in bets attracted attention as the election period was coming to a close. During the final hours of the polls, the volume of bets increased significantly. The regulator attributed this activity to its quick reaction.

In Portugal, other prediction markets are still accessible. They are Kalshi, Myriad, and Limitless. The regulator has not declared any further action on these platforms.

In over 30 countries, Polymarket is restricted. They are Singapore, Russia, Belgium, Italy, and Ukraine. Certain areas have banned the site completely, others have permitted partial access as a view-only site.

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