Polymarket, a New York-based prediction market platform, has encountered another setback in its European expansion efforts. Italy’s Customs and Monopolies Agency (ADM) has placed the company on its list of unauthorized gambling websites, marking another blow after a similar move by the Dutch gambling regulator, KSA. This decision reflects a broader skepticism towards prediction markets by European regulators, who’ve recently expressed concern over market integrity and player protection.
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ADM’s Renewed Action Against Polymarket
This isn’t the first time Polymarket has faced obstacles in Italy. The ADM had previously blocked the platform in late 2025, but legal proceedings led to its temporary unblocking by the Regional Administrative Court of Lazio. With the ADM’s renewed decision, the platform may now face criminal proceedings, as the matter is being reported to the Rome Public Prosecutor’s Office. Stefano Tino of Betsson’s Southern Europe division praised the Italian regulator’s consistency, emphasizing the importance of uniform rules across the gambling industry. And italy is a critical market — one of Europe’s largest for betting. The country issued new online gambling licenses last year, reducing the number of operators to a select 46, with stricter regulations in place. Gross gambling revenue hit €333.7 million in December, underlining the market’s significance and the potential impact of unlicensed operators.
Broader European Scrutiny on Prediction Markets
Polymarket’s troubles aren’t confined to Italy. The platform was blocked in France in 2024 and Belgium in 2025. Earlier this year, Spain imposed a temporary block, grouping Polymarket with its rival Kalshi. A coalition of nine European regulators recently launched a joint initiative aimed at addressing risks posed by prediction markets, specifically pointing out concerns relating to player protection and market integrity. It’s not just gambling regulators getting involved. The European Securities and Markets Authority (ESMA) has warned that some prediction markets may qualify as restricted financial products. ESMA’s focus has been on yes-or-no contracts with fixed payouts, which might fall under prohibitions against marketing binary options to retail customers.
Impact on Sponsorship Deals and Regulatory Risk
The Italian regulator’s timing puts Serie A’s SS Lazio in a precarious position. Having signed Polymarket as its main sponsor for €19 million earlier this year, the club could potentially breach Italian laws prohibiting advertising for unlicensed betting entities. The agreement spans through the 2027/28 season, with an option to extend. But if the ADM’s stance holds firm, Lazio might find itself in hot water legally. Industry analysts note the wider European clampdown on prediction markets highlights escalating regulatory pressures — particularly for crypto-based platforms like Polymarket. Whether these actions will impact the market market remains an open question.
What’s Next for Polymarket
Italian authorities are expected to continue their scrutiny, potentially setting a precedent for other European countries. With the ADM’s renewed enforcement, eyes will be on how Polymarket navigates these legal challenges and whether it can adapt to Europe’s regulatory environment. The company’s ongoing legal battles might influence its sponsorship commitments, especially as the 2026 football season approaches.
Garry Sputnim is a seasoned journalist and storyteller with over a decade of experience in the trenches of global news. With a keen eye for uncovering stories that resonate, Alex has reported from over 30 countries, bringing light to untold narratives and the human faces behind the headlines. Specializing in investigative journalism, Garry has a knack for technology and social justice issues, weaving compelling narratives that bridge tech and humanity. Outside the newsroom, Garry is an avid rock climber and podcast host, exploring stories of resilience and innovation.
