Tweakers · Technology

Polymarket Tries to Circumvent Gambling Rules in Europe

The gambling company Polymarket is lobbying European and British regulators to have its activities fall under financial regulations, rather than gambling legislation.

Polymarket, a platform where users can bet on a variety of things, such as sports results, political events, and financial markets, wants to be seen as a financial service provider. The company is banned in most European countries, including the Netherlands and Belgium.

The company is launching a lobbying campaign and consulting with regulators in London, Brussels, and the EU, as well as with the European Securities and Markets Authority (ESMA) and the European Commission.

Polymarket argues that its contracts should be treated as derivatives under European MiFID rules, rather than as bets falling under national gambling legislation.

The company has joined Blockchain for Europe and wants to have open discussions with policymakers and regulators regarding international expansion.

The British Financial Conduct Authority (FCA) is considering reforms for retail investors but views binary options as speculative and risky. The FCA places political and sports betting under the responsibility of the Gambling Commission.

Gambling regulators in the UK and various European countries emphasize that a local gambling license is required for Polymarket's offerings. ESMA previously warned about insider trading in the prediction market.

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