Romania’s gambling authority has officially banned the blockchain-based prediction platform Polymarket, calling its operations “unlicensed gambling” after more than $600 million worth of election-related wagers flooded the platform. The regulator says blockchain technology doesn’t exempt platforms from gambling laws — a move that could set a precedent across Europe.
The Crackdown on Crypto Gambling
Romania’s National Office for Gambling (ONJN) announced that Polymarket is now blacklisted for offering betting services without a local license. The site, which allows users to wager on real-world events using cryptocurrencies, reportedly saw a huge surge in Romanian users ahead of the country’s presidential and local elections.
The ONJN ordered local internet service providers to block access to Polymarket’s domain, labeling it an “unauthorized gambling site.” The regulator noted that blockchain use doesn’t exempt operators from compliance with existing gambling laws.
A Growing Grey Area for Blockchain Prediction Markets
Polymarket has positioned itself as a decentralized prediction market, allowing users to trade outcomes on global events — from politics to sports. However, regulators argue that when real money (or crypto) is staked, such activity qualifies as gambling, even without centralized operators.
The ONJN’s decision highlights a growing tension between DeFi innovation and gambling law, raising questions about how decentralized platforms can legally operate in jurisdictions with strict gambling frameworks.
Over $600 Million in Election Bets
According to on-chain analytics firm CryptoRank, over $600 million worth of wagers were placed on Polymarket in the months leading up to major global elections, including the U.S. presidential race and Romania’s own contests.
This unprecedented spike drew regulatory attention, with officials claiming that such massive, unregulated betting “poses a risk to consumers and public order.”
Industry analysts say the crackdown could push similar platforms to explore geo-blocking or licensing models to maintain operations across different markets.
Polymarket’s Response and the Road Ahead
Polymarket, which operates under a U.S.-based entity, has not yet issued a formal statement regarding Romania’s ban. The platform previously settled with the U.S. Commodity Futures Trading Commission (CFTC) in 2022, paying a fine for operating unregistered event markets.
Experts say the latest enforcement in Romania may spark EU-wide discussions on how decentralized event markets should be classified — as financial instruments, information markets, or simply gambling sites in disguise.
Implications for Web3 Betting Platforms
The move underscores the legal uncertainty surrounding decentralized betting. While users see prediction markets as data-driven tools for gauging public sentiment, regulators increasingly view them as a form of unlicensed gambling when crypto is involved.
If more European regulators follow Romania’s lead, blockchain-based prediction markets may need to restructure their token economies and register under gambling frameworks to continue operating legally.