Portugal: Regulator orders Polymarket to cease operations immediately
The SRIJ gave the platform 48 hours to shut down its services in the country after detecting bets exceeding EUR 103 million on the presidential elections. Portuguese regulations explicitly prohibit bets on political events.
The Serviço de Regulação e Inspeção de Jogos (SRIJ) of Portugal has issued a cease and desist order against Polymarket, the blockchain-based prediction platform that has been in the spotlight this week. The measure comes after monitoring detected a massive volume of transactions linked to the presidential elections held on January 18.
According to Rádio Renascença, the political prediction market in Portugal reached a transaction volume of EUR 103 million, a figure that raised alarms with the regulator due to the company's lack of an official license and the prohibited nature of the event subject to the bets.
Politics: A "Red Line" in Portuguese legislation
Unlike other more flexible markets, Portugal's Online Gambling Law (in force since 2015) is restrictive regarding eligible events for betting. Only sports, casino games, and horse racing are permitted.
"The website is not authorized to offer bets in Portugal, as national legislation prohibits betting operations related to political events, both national and international," the SRIJ stated in an official release. The agency warned that if the order is not complied with within the stipulated timeframe, it will proceed to request internet providers to block the domain's DNS.
A phenomenon under global scrutiny
Polymarket, which has gained global notoriety for its ability to anticipate electoral outcomes, now faces restrictions in more than 30 jurisdictions. The Portuguese case adds to a list that includes Singapore, Belgium, Italy, and the United States (Nevada), demonstrating that blockchain technology does not exempt operators from complying with territorial gambling laws.
The impact on prediction markets
The SRIJ's action also puts other platforms such as Kalshi or Limitless, which are still accessible in the country, in the spotlight. This move suggests that the Portuguese regulator has initiated a "zero tolerance" phase against event contract markets, especially when they interfere with democratic processes.
For industry executives, the message from Lisbon is clear: the growth of prediction markets in Central Europe will face insurmountable legal barriers if they do not adapt to existing licensing regimes and respect restrictions on electoral topics.
Tags: Portugal, Polymarket Portugal, Portugal Predictive Markets