Czech Republic Targets Polymarket With ISP Blocking Order

Key insights

• Czech authorities consider prediction markets gambling regardless of contractual terminology.
• European regulators are increasing coordination instead of acting independently.
• Financial and gambling regulators now examine the same products through different legal frameworks.

Polymarket has lost access to another European market after the Czech Republic classified the prediction platform as an unauthorized online gambling service. The decision adds pressure on prediction markets across Europe while Gibraltar moves in the opposite direction with the world’s first dedicated regulatory framework for the sector.

The Czech Finance Ministry placed Polymarket on its List of Unauthorized Internet Games after determining that the platform operates without the licenses required under national gambling laws. Internet service providers now have 15 days to block local access, making the Czech Republic the latest country to restrict the platform.

Czech regulators tighten enforcement against prediction markets

The move follows concerns raised by the Institute for Gambling Regulation on July 14. Officials argued that prediction markets function like traditional betting regardless of how operators describe them.

Institute founder and director Jan Řehola said changing the language from betting to contracts does not alter the product’s nature. According to him, users still risk money on uncertain outcomes and receive financial rewards based on those events.

Authorities also pointed to broader market risks. They warned that contracts linked to real-world events could encourage market manipulation or create opportunities for traders with privileged information. Regulators compared those concerns to insider trading because participants may profit from information unavailable to the wider public.

The Finance Ministry’s blocklist already includes roughly 3,300 domains. Polymarket now joins that list as Czech authorities increase enforcement against unlicensed operators.

Europe follows a tougher regulatory path

The Czech decision reflects a broader trend across Europe. France, Germany, Belgium, Italy, the Netherlands, Spain, Portugal and several other jurisdictions have already taken action against prediction market platforms.

Regulatory cooperation has also accelerated. In June, nine European regulators agreed to share information on prediction platforms and their activities ahead of the FIFA World Cup.

Italy strengthened its position earlier this month after restoring Polymarket to its national blocklist following a temporary court decision. The country’s Customs and Monopolies Agency must also report the matter to prosecutors, creating the possibility of criminal proceedings.

The Netherlands also rejected the platform’s appeal and upheld previous sanctions. Meanwhile, the European Securities and Markets Authority warned that some event contracts could already fall within existing European rules covering binary options and financial instruments.

Regulators argue that companies cannot avoid financial regulations simply by describing products as event contracts instead of derivatives.

Gibraltar opens a different regulatory path

While several European countries continue restricting prediction markets, Gibraltar has introduced a dedicated legal framework.

The Prediction Market Regulations 2026 came into force on 13 July. The rules distinguish prediction markets from Gibraltar’s Gambling Act 2025, and create a separate regulatory regime.

For every event contract, there must be an approval by operators prior to offering to its users. The framework also permits stablecoins for deposits and settlements under regulatory supervision.

Two companies already fall within the new regime. ADI Predictstreet received a betting intermediary license in March and serves as the official prediction market partner for the 2026 FIFA World Cup. WagerWire’s Wire Markets secured approval in principle during June and expects to launch in August.

The contrasting approaches highlight Europe’s growing regulatory divide. In one jurisdiction, prediction markets are prohibited as gambling and in another are permitted but subject to special rules that are tailored for the same products.

Industry outlook

As restrictions grow tighter, they will make it harder for the decentralized prediction platforms to expand internationally. There are different legal standards for companies now, depending on where users are accessing their services.

The fragmented landscape can mean investors and traders have access to varying levels of access to the same product, depending on their location. Despite the increased regulatory uncertainty, Polymarket is still seeing robust trading volumes.

Conclusion

The Czech Republic’s decision confirms the growing co-ordinated stance of the European Union towards prediction markets. National regulators continue treating many event-based contracts as gambling products that require licensing and consumer protections.

At the same time, Gibraltar has introduced a dedicated framework that recognizes prediction markets as a separate category. Those opposing strategies leave Polymarket operating in a regulatory environment that is becoming more divided rather than more consistent.