Polymarket Lobbying Campaign Seeks MiFID Classification Across Europe

Polymarket has intensified its campaign to secure recognition as a financial services provider in Europe. The operator is engaging regulators to access jurisdictions where prediction markets face bans or severe limits under gambling rules.

According to The Financial Times, the company is holding discussions with authorities in the UK and across the European Union, as well as with the European Securities and Markets Authority (ESMA) and the European Commission. The central objective is reclassification under the Markets in Financial Instruments Directive (MiFID).

European Regulatory Scrutiny

Prediction markets are largely unavailable to retail customers in Europe. In June, nine gambling regulators coordinated action against unlicensed platforms. France’s Autorité Nationale des Jeux banned Polymarket in 2024, ruling that its services constituted unlicensed gambling. In Italy, the operator terminated a sponsorship agreement with SS Lazio after being designated a prohibited site.

ESMA determined that binary yes-or-no prediction contracts with fixed payouts are restricted financial instruments. Contracts linked to equities, indices, interest rates, currencies or commodities can instead qualify as derivatives under Annex I of MiFID II. The UK’s Financial Conduct Authority (FCA) placed contracts on financial or certain climatic events under its remit, while non-financial events such as sports or political outcomes fall to the Gambling Commission. The FCA stated it will “consider whether we want to do further work on access to these products, and/or clarify the perimeter.”

Polymarket joined Blockchain for Europe this month. A successful shift to financial services status would open a clearer pathway into Europe beyond its license in Gibraltar, the first jurisdiction to establish a dedicated prediction markets framework earlier this year.

Classification Risks Ahead

Gambling regulators have shown clear intent to enforce restrictions, creating a direct counterweight to any financial reclassification. The line between derivatives and event contracts remains unsettled in multiple jurisdictions, exposing operators to ongoing enforcement actions and licensing blocks even during lobbying.

Regulators and platforms must anticipate further perimeter clarifications from ESMA and the FCA. These determinations will set the practical terms for market access and compliance structures in the years ahead.

Reporting: iGaming Business (iGB)

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