Romania Prohibits Unregulated Prediction Markets, Classifying Them as Gambling
- Romania's ONJN banned unlicensed prediction market Polymarket, classifying its user-driven bets on real-world events as gambling requiring a license. - Regulators warned that treating counterparty betting as "trading" creates legal risks for player protection, AML compliance, and state revenue collection. - The crackdown follows $600M+ in wagers on Romanian elections and joins bans in France, Belgium, and the U.S., where Polymarket faces EU licensing hurdles. - Despite securing a CFTC-licensed exchange a
Romania's National Office for Gambling (ONJN) has added Polymarket, a major global prediction market, to its blacklist for operating in the country without proper authorization. The authority labeled the platform's operations as "counterparty betting," which is a regulated form of gambling that requires a license, referencing its model where users place bets on real-world outcomes, according to
Vlad-Cristian Soare, the head of ONJN, clarified that the prohibition is based on legal grounds rather than technological ones. "It doesn't matter if you use lei or cryptocurrency; if you're betting on a future outcome under counterparty conditions, it constitutes gambling that requires a license," he explained, according to
This enforcement places Romania among several countries taking action against Polymarket. In late 2024, France blocked access to the platform, Belgium deemed it unlawful in February 2025, and the United States required its withdrawal in 2022 after imposing a $1.4 million penalty for unlicensed swap execution, according to Yahoo. Despite these setbacks, Polymarket has attempted to re-enter the U.S. by acquiring a CFTC-approved derivatives exchange and has attracted $2 billion in funding from Intercontinental Exchange, which owns the New York Stock Exchange.
Romania’s decision underscores Polymarket’s swift international growth, especially during major events. For instance, a single market predicting Bucharest’s mayoral outcome saw $16 million in trades, while a presidential election market reached $370 million, as noted by SBC News. ONJN pointed out that such operations "bypass the legal requirements for licensed operators," including tax obligations and player protection measures, as reported by
Polymarket has yet to issue a statement regarding the ban. CEO Shayne Coplan has previously said the company intends to comply with regulatory standards, but its lack of licenses in the EU remains a significant challenge, as Decrypt noted. With four European authorities now officially prohibiting its services, Polymarket faces increasing obstacles as it seeks to expand globally amid complex regulatory environments.
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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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