Romania has moved to shut down access to Polymarket, a prediction market platform, declaring it an unauthorized gambling operator within its borders. The decision, made by the National Gambling Office (ONJN) on October 29th, stems from concerns over unlicensed betting activity and a surge in platform usage leading up to recent elections.
The ONJN observed what it called “explosive growth” on Polymarket as Romanians began using the platform to wager on the outcomes of both the presidential and local Bucharest elections. Transactions related to the presidential election alone reached a staggering $600 million, with the local elections generating an additional $15 million in bets.
The core of the issue, according to the ONJN, lies in Polymarket’s structure. They’ve categorized it as a “counterparty bet,” highlighting the presence of stakes, uncertain future events, users betting against each other, and language explicitly referencing “placing bets.”
Polymarket functions as an intermediary, profiting from a commission on each bet without guaranteeing any fixed odds. The ONJN insists this isn’t investment, but rather the organization of bets between individuals, conducted without the necessary license or regulatory oversight.
The ONJN is firm in its stance: all online gambling within Romania must be licensed and supervised to protect users and the state from significant risks. They are now actively communicating with internet service providers to block access to Polymarket for Romanian users.
“This decision isn’t about the technology itself,” emphasized Vlad-Cristian Soare, President of the ONJN. “Whether you bet with traditional currency or cryptocurrency, wagering on a future outcome under these conditions constitutes gambling, and it must be licensed.”
Romania isn’t alone in its scrutiny of Polymarket. The platform faced a temporary ban in the United States following a similar determination by the CFTC that its activities constituted unlicensed gambling. Belgium, France, Poland, Singapore, and Thailand have also taken action against the platform.
The ONJN is resolute in preventing blockchain technology from being used as a shield for illegal betting operations, signaling a broader commitment to regulating the evolving landscape of online gambling.
