Portugal Shuts Down Polymarket Over Illegal Political Betting

Portugal has ordered crypto prediction platform Polymarket to stop operating in the country. The decision came from the national gambling regulator SRIJ. They said the site is illegal under Portuguese law. According to Renascença, Polymarket was given 48 hours to shut down. When it failed to do so, regulators moved to block access to the website across Portugal. The main reason is simple. Portugal bans political betting, and Polymarket does not hold a valid gambling license in the country.

Why Polymarket Was Declared Illegal

Portugal has strict gambling rules under its 2015 online betting law. Any platform offering betting services must be licensed. Polymarket does not have this license. Portugal fully bans betting on political events. This includes elections, government decisions and public votes.

According to Renascença, Portugal’s gambling regulator SRIJ has ordered crypto prediction market Polymarket to cease operations and be blocked in Portugal, deeming it illegal due to lack of authorization and a national ban on political betting. The report notes over €4 million…

— Wu Blockchain (@WuBlockchain) January 20, 2026

SRIJ said Polymarket’s activity clearly breaks national law. The platform allows users to place bets on political outcomes using crypto, mainly USDC. Because of this the regulator has now asked internet service providers to block access to the site.

€4 Million Placed Before Election Results

The case became serious after unusual betting activity during Portugal’s presidential election. In the hours before officials announced results, bettors placed more than €4 million on Polymarket markets linked to the election. One candidate, António José Seguro, suddenly jumped from around 60% probability to nearly 100% just before polls closed. At the same time other candidates crashed in the market.

By the time TV channels released official exit polls. Polymarket traders had already “picked” the winner. This raised big questions. Regulators suspect that individuals leaked early exit poll data and used it for insider style betting.

How Polymarket Works

Polymarket is a crypto based prediction market founded in 2020. Users buy and sell “shares” on real world events like elections, sports and economics. Each event has two options: yes or no. Prices move between $0 and $1 depending on what traders think will happen. If you buy a low probability outcome and it wins, you make a profit. If you’re wrong, you lose your money. The platform runs on blockchain and uses USDC for payments. While fast and global, this also makes regulation difficult.

What Happens Now

SRIJ says it can only regulate licensed companies. Since Polymarket lacks a license, Portuguese users have no guarantee that they will recover their money after the block. Internet providers now expect to block the platform. Though some users may still access it using VPNs.

Polymarket already restricts Polymarket in more than 30 countries. Portugal now joins that list. This case shows the growing tension between crypto prediction markets and national laws. While some see these platforms as tools for open information, regulators see them as illegal gambling. Especially when politics is involved. Currently, in Portugal betting on elections is officially off the table.