Romania’s National Office for Gambling (ONJN) recently took an unexpected regulatory action and blacklisted cryptocurrency-based prediction market platform Polymarket as unlicensed gambling, in response to reported surge in crypto wagering during national elections — over $600 million trading volume according to reports by both TradingView and SBC News. The move follows months of crypto gambling activity seen during elections as well.
Why the Ban
Romanian authorities identified Polymarket’s activity during the May 2025 presidential and local elections as being responsible for initiating their ban. On JN News counts over $600 Million worth of trading volume related to election outcome markets while another $15 Million can be seen trading within local election markets within Bucharest alone. SBC News details more.
ONJN determined that Polymarket, although purporting itself as an “event-trading” or “prediction market” platform using blockchain and crypto currencies, constitutes counter-party betting – where users bet against one another on future events – which constitutes gambling under Romanian law. As a result, Polymarket was added to Romania’s blacklist of unauthorised gambling operators. AInvestments has taken steps against Polymarket since then in response.
On Tuesday, ONJN President Vlad-Cristian Soare stressed: “It isn’t about technology; it is all about law… Betts must be licensed under an approved counterpart-bet framework regardless of whether bets are placed with lei or cryptocurrency.”
TradingView
Soare’s statement revealed regulatory concerns as well as possible violations in terms of licensing requirements for bets made using counterpart-bet frameworks.
The regulator identified multiple areas of concern.
Lack of a Romanian gambling licence.
Lack of consumer-protection and fiscal oversight mechanisms typical of licensed gambling providers. Next.io on Monday reported: +1
Anti-Money Laundering (AML) processes may be insufficient or missing altogether, as well as circumventing state monopoly on gambling activity.
CryptoRank: 1 Use of blockchain and cryptocurrency-denominated bets as “innovation,” something ONJN says cannot be used as a cover for dodging regulatory obligations. AInvest says “innovative solutions cannot serve as a mechanism for dodging regulatory obligations”.
Romanian internet service providers are now required to block access to Polymarket for users located within their borders. This regulatory action holds significance for multiple stakeholders:
Polymarket faces pressure from another European jurisdiction for engaging in “unlicensed gambling”, adding another setback to its global expansion plans.
SBC News This development highlights how prediction markets using blockchain are being tested within traditional legal frameworks–namely gambling laws–rather than being seen solely as innovative financial instruments.
Regulators see it as setting a precedent: even platforms labeled as event trading or prediction markets may still fall under gambling regulation if they facilitate bets on uncertain outcomes without prior authorisation.
Polymarket is reported to be planning an American relaunch focused on sports-type markets after acquiring a CFTC-licensed derivatives exchange, and this plan could occur as early as this month, according to reports by NEXT.io.
However, in Europe and Romania specifically, firms now face an insurmountable hurdle: operating without a valid license is no longer acceptable. Now comes the question of how they will respond: will they apply for one, change their model, or avoid jurisdictions with stringenter regulations altogether.
Users in Romania no longer legally have access to Polymarket’s services and any continued usage may carry legal risk. Regulators highlighted the social ramifications of unlicensed platforms shaping public markets around sensitive events like elections. AInvest also took notice that users in Romania will no longer legally be able to use Polymarket.
Conclusion
Romania’s blacklisting of Polymarket represents more than mere regulatory action; it marks an historic turning point where national gambling law catches up with crypto innovation. With $600 million flowing through election-outcome markets, its scale raised alarm bells. For Polymarket to remain operational under these circumstances will require finding ways to reconcile its blockchain-powered model with licensing regimes that treat prediction markets as gambling when users stake value on uncertain outcomes.
