In a major regulatory move that signals growing scrutiny of blockchain-based betting platforms, Romania’s National Office for Gambling (ONJN) has officially blacklisted Polymarket, labeling it an unlicensed gambling operation. The decision reflects how European regulators are beginning to close gaps between crypto innovation and established gambling law, and it has wide implications for both the industry and users.
Polymarket operates as a decentralized prediction market that allows users to place bets on the outcomes of real-world events, ranging from elections to sports and entertainment. Built on blockchain technology, it has been praised for its transparency and accessibility. However, regulators in several countries have increasingly argued that such markets are functionally identical to traditional betting platforms, since participants stake funds on uncertain events and can profit or lose depending on the result.
According to Romanian officials, the platform processed more than 600 million dollars worth of transactions during the country’s recent presidential race, and an additional 15 million dollars in wagers on the Bucharest elections alone. Authorities determined that these activities qualify as “counterparty betting” under Romanian law, meaning users are effectively gambling against each other while Polymarket serves as an intermediary that takes a fee.
The ONJN made clear that its decision was not about the underlying technology but the legal function of the service. Whether users trade in crypto or fiat currency, the act of wagering on outcomes without a national license still constitutes gambling under Romanian regulations. Internet providers across the country have been instructed to block access to the platform, and Romanian users may face additional restrictions or penalties if they continue to participate through alternative routes.
Under Government Emergency Ordinance 77/2009, all gambling activities in Romania must be licensed, with strict obligations for consumer protection, anti-money laundering compliance, and tax reporting. Polymarket was found to have failed on all these fronts, operating without registration or oversight. Regulators stressed that allowing crypto-based platforms to bypass these requirements by claiming to be “markets” rather than “casinos” would open the door to abuse and tax evasion.
Romania’s action follows similar moves by other European countries including Belgium and France, which have also classified Polymarket-style platforms as unlicensed gambling. This pattern reflects a broader tightening of rules around crypto markets as authorities aim to close legal loopholes and ensure consistent oversight across digital finance.
For users, the implications are significant. The ban could mean blocked access, frozen funds, or a lack of recourse in the event of disputes. Without licensing, operators are not obligated to provide consumer protection measures such as responsible gambling limits or verified payout systems. For the industry, the ruling signals that national regulators are no longer tolerant of platforms operating across borders without compliance measures or jurisdictional approvals.
Polymarket and similar prediction platforms now face a strategic crossroads. To continue operating globally, they may need to adopt regional licensing strategies, strengthen compliance frameworks, or restrict access to jurisdictions with strict gambling laws. What was once seen as a novel fusion of blockchain and market prediction is now being reclassified as gambling in legal terms, forcing developers and users alike to reconsider their approach.
Romania’s ban on Polymarket marks a defining moment in the ongoing debate about how to regulate blockchain-based innovation. It highlights that while technology may evolve, the core legal principles of consumer protection and market integrity remain constant. The message is clear: innovation in crypto cannot bypass regulation simply by changing its form.
