Ukraine Cracks Down: Polymarket Blocked Over Unlicensed Gambling Operations
Kiev slams the door on prediction markets. Ukrainian authorities just blocked access to Polymarket, the crypto-based event-betting platform, citing unlicensed gambling activity. No warning, no negotiation—just a hard cut from the national regulator.
The Regulatory Hammer Falls
It's a classic move from the playbook: target the infrastructure. Internet service providers across Ukraine received the order, effectively blacklisting the site. The official line? Polymarket was operating a gambling service without the necessary local license. No mention of the political or financial prediction markets that form its core—just the G-word. Gambling.
A Global Pattern Repeats
This isn't Polymarket's first regulatory skirmish, and it won't be the last. The platform, which lets users bet crypto on everything from election outcomes to climate deadlines, lives in a legal gray zone worldwide. One nation's 'innovative information market' is another's illicit betting ring. Ukraine's action echoes similar scrutiny from other jurisdictions nervous about decentralized finance spilling into public opinion shaping.
The Chilling Effect on Crypto Innovation
The block raises immediate questions for other prediction markets and decentralized applications. If a platform built on 'event contracts' can be classified as simple gambling, what's next? The precedent worries builders in the space. It forces a choice: seek burdensome licenses in every territory or design for stealth and hope you don't get caught. Neither option is great for open innovation.
Finance's Old Guard Gets a Win
Let's be cynical for a second. Traditional financial institutions and state-run lotteries must be quietly cheering. A disruptive, borderless competitor just got a localized takedown. It's a reminder that for all its decentralized promise, crypto still hits the hard wall of national law—and the old players still write most of the rules. The 'unlicensed' jab is particularly rich, coming from a system where licensing often serves as a revenue stream and a barrier to entry more than a consumer protection measure.
What's Next for Polymarket?
The platform is likely assessing its options: legal challenge, lobbying for regulatory clarity, or a tactical retreat. For users in Ukraine, it's back to VPNs or alternative platforms. The broader lesson? The clash between global crypto protocols and local regulators is escalating. Prediction markets, sitting at the crossroads of finance, speech, and gambling, are first in the firing line. Ukraine just fired a loud shot.
The polymarket.com domain enters the public registry of blocked resources
In 2025, Polymarket found itself at the center of criticism in Ukrainian media for accepting bets on events related to the Russian-Ukrainian war, in particular on the timing of the possible occupation of cities in Donbas.
For instance, in November 2025, there were 97 bets on the Russian-Ukrainian war on Polymarket, totaling $96.8 million. At the same time, it became known that Polymarket used the API of the Ukrainian OSINT project DeepState without permission to integrate with bets on the occupation of Ukrainian territory.
The following month, the Institute for the Study of War (ISW) found itself at the center of a scandal over a change to its map of the war in Ukraine, which became the basis for betting on the Polymarket platform.
“At the same time, foreign game enthusiasts are more outraged by data manipulation by map sources, which affects the results of such markets. They accuse ISW of allegedly deliberately introducing a fictitious Russian promotion on the map an hour before the market resolution and are asking for a change in map sources,” noted Ukrainian volunteer, blogger and activist Serhiy Sternenko.
In December ,the platform completed about 240 Ukraine-related bets, with a total volume of over $270 million. Another 120 active bets exceed $140 million. This month, the platform shows 77 bets just by clicking on Ukraine.
The law has authorised providers of electronic communications services to restrict access to online resources used to organize, conduct, or provide access to gambling without a proper license.
The polymarket.com domain has already been added to the public registry of blocked resources. However, according to reports, the blocking is uneven: for some Ukrainian users, the site is no longer available, while for others it is still open without restrictions.
Polymarket faces growing regulatory scrutiny
Polymarket, alongside Kalshi and Crypto.com, were ordered by Tennessee regulators to stop providing citizens with contracts for sporting events due to alleged violations of state gambling regulations today.
According to Cryptopolitan, the platforms received letters dated January 9 from the Tennessee Sports Wagering Council. The letters demanded that the companies, which operate under federal CFTC supervision, must cease operations in Tennessee, nullify open contracts, and return user deposits by January 31st.
The Tennessee letters demanded that failure to comply may result in criminal referrals for aggravated gambling promotion, a felony under state law, as well as civil penalties of up to $25,000 per infraction.
In November, Romania added Polymarket to its blacklist of prohibited gambling sites. The regulator says Polymarket processed more than $600 million in bets on Romania’s presidential and local elections.
Romanian officials say Polymarket operates as an unlicensed gambling service. The platform allows users to bet against each other on future events, which falls under the country’s gambling laws.
France, Belgium, Poland, Singapore, and Thailand have also limited access to the site. Each country cited similar concerns about unlicensed gambling operations. The platform continues to operate in countries where it faces no restrictions and the US, where it recently got a green light.
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