Polymarket Discusses EU, UK Prediction Market Rules

Polymarket is reportedly in discussions with regulators in the UK and European Union over whether its prediction markets should be classified as financial services rather than gambling.

The company is seeking a regulatory approach under which its event contracts could be treated as financial products, similar to the classification applied by the CFTC in the United States.

Polymarket has faced restrictions in several European markets, including Italy, the Netherlands and France, where regulators have considered its prediction markets within the scope of gambling services.

According to the information, Polymarket has held discussions with authorities in London and Brussels, including the UK Financial Conduct Authority (FCA), the European Commission and the European Securities and Markets Authority (ESMA).

ESMA is reportedly in talks with Polymarket since June regarding the structure of event contracts. The discussions include the possibility that contracts covering different types of questions could potentially be treated differently, with some qualifying as financial instruments while others may not.

While the UK Gambling Commission has not officially classified Polymarket as an unauthorised betting provider, prediction market operators based in Great Britain cannot claim that their services are outside the scope of gambling on that basis.

For Polymarket, securing access to major European markets would also contribute to its international expansion as prediction market operators seek to build on the rapid growth seen in the US market.