As forecasting platform Polymarket prepares for a high-profile return to the US market, Romanian regulators are taking a tougher stance.
Romania’s National Office for Gambling (ONJN) has effectively banned betting services from operating in the country.
The regulator said the company, led by Shayne Coplan, was carrying out gambling activities without a license and had blacklisted the website as of Thursday. See below.
The ONJN representative said, “The decision to include Polymarket in the blacklist is not a technical issue, but a legal issue.” Vlad Christian Soare. “If you’re betting money on future outcomes, whether you’re betting on lays or cryptocurrencies, we’re talking about gambling that requires a license.”
summation
- Polymarket’s contrasting fortunes highlight the global regulatory patchwork facing the blockchain-based betting platform, which has been hailed as a potential disruptor of traditional sportsbooks in the United States.
- However, in Romania they are blacklisted as unlicensed gambling operators.
- It remains to be seen whether the next steps in the United States will solidify legitimacy or invite new scrutiny.
Romania draws a line between ‘trading’ and ‘betting’.
Soare said ONJN “will not allow blockchain to be turned into an illegal betting screen.”
ONJN argued that although Polymarket promotes itself as an “event trading platform,” its structure constitutes counterparty betting as users bet funds against each other on future outcomes.
“Accepting the idea that a system of ‘opponent betting’ could be called ‘trading’ would set a dangerous precedent,” the regulator said, warning it could allow operators to circumvent gambling and financial markets laws, particularly during sensitive events such as general elections.
US return targets sports betting
Meanwhile, Polymarket is preparing to relaunch in the US with a licensed sports-focused product designed to comply with US gambling regulations. The company plans to prioritize large sporting events such as the NFL, NBA and other major leagues, with a limited rollout expected in November.
Market reaction suggests traders are taking the threat seriously. Shares of DraftKings and Flutter Entertainment fell 5% and 3%, respectively, on news of Polymarket’s return.
The return follows Polymarket’s acquisition of QCX, a Florida-based exchange licensed by the Commodity Futures Trading Commission (CFTC). This is a move that sets the regulatory stage for Polymarket to offer event contracts.
The company also secured a no-action letter from the CFTC, informing Polymarket that the agency does not plan to take enforcement action if it stays within defined compliance boundaries.