American cryptocurrency-based prediction market Polymarket has been blacklisted by the Belgian Gaming Commission (BGC) after receiving multiple warnings, local reports state.
The Kansspelcommissie updated its list of illegal sites towards the end of January, revealing that Polymarket has indeed been banned in the country alongside two online gaming sites Casino Hermes and Amunra.
Belgian newspaper HLN states that it has received confirmation of the blocking by the BGC, which stated that it had previously warned Polymaket that the firm was acting in violation of the country’s gaming laws.
Polymarket was issued a warning by the BGC in November, followed by a second in December, but the company did not respond to either according to HLN. This led to the BGC blacklisting the firm, meaning Belgian internet providers will be asked to block access to it.
“In November 2024, in accordance with our procedure, we issued a notice of default and the website was contacted with a request to comply with the Belgian Gambling Act,” the statement read.
A lucrative but turbulent history
Polymarket is often characterised as a ‘political gambling platform’ using cryptocurrency. The essential premise of the firm’s offering is a predictions market where users can wager on future outcomes from political developments to changes in the weather.
Users deposit and wager on the platform using the USDC cryptocurrency, a US dollar-pegged stablecoin issued by Circle. Deposits and wagers are placed via the company’s own in-house-built Polygon blockchain network.
The company has been no stranger to controversy throughout its five-year operating history. In 2022 it opted to block all US-based consumers from being able to access its platform following a settlement with the Commodity Futures Trading Commission (CFTC).
Three years down the line, the CFTC finds itself in similar discussions with other companies around prediction markets. It has found itself particularly at odds with Kalshi, the leading provider of political event contract products, as well as Crypto.com following the latter’s launch of a sports event contract product in December 2024.
Focusing back on Polymarket, the company was also investigated by the French gaming regulator, Autorité Nationale des Jeux (ANJ) in November 2022 and in a more widely published incident its US offices were raided by the FBI.
Both instances related to the November Presidential elections in the US, with the French investigating results from a French national placing and winning a large bet on Donald Trump’s election victory. The ANJ is assessing whether Polymarket’s platform breaches French gambling laws.
Shayne Coplan, founder and CEO of Polymarket, remains adamant that the company has committed no wrongdoings. He also accused the FBI raid of being politically motivated due to the then-administration’s loss in the November election.
Meanwhile, the FBI was investigating allegations that Polymarket had breached its previously mentioned agreement with the CFTC regarding the exclusion of American consumers.
Now that a new administration is in power in the US under Donald Trump – who is also outwardly pro-crypto – and new leadership at the CFTC, the federal government’s approach to Polymarket may change. This of course is yet to be seen….