Czech Ministry of Finance Adds Kalshi to Unauthorized Gambling List Triggering ISP Blocks

The Czech Republic’s Ministry of Finance has added Kalshi to its list of unauthorised gambling operators. Internet service providers must block access to the platform within 15 days of the 30 September announcement.

The prohibition follows an identical order issued against Polymarket in July. According to reporting by SBC News, Czech regulators classify prediction markets as betting products marketed as investment tools, a stance shared by authorities in Belgium, France, Romania, Spain and Germany.

Substance Over Naming Conventions

The Czech Institute for Gambling Regulation (IPRH), which represents more than 90% of the regulated gambling sector, referred the matter to the Ministry. Jan Řehola, IPRH Director, stated that the Kalshi decision reflects the approach now being applied in practice.

Řehola said: “What matters should not be the name of the product, but its actual substance. If a person puts money at risk on the uncertain outcome of a real-world event, it should not be possible to circumvent the rules simply by calling the bet a contract or a financial instrument.”

In the United States, Kalshi operates event contracts under Commodity Futures Trading Commission (CFTC) oversight as financial instruments. European regulators have rejected that distinction absent a local gambling licence. IPRH further warned that emerging products cannot evade player protection and supervision rules through altered terminology.

Limits of US Status in European Markets

Kalshi recorded around $60 billion in trading volume last month and is seeking capital to support a valuation of approximately $40 billion. Udesh Jha, the firm’s Chief Risk Officer, said at SBC Summit Lisbon that Kalshi “would love to expand in Europe”.

Andrew Lyman, Gibraltar’s Gambling Commissioner, offered a different perspective. Lyman said: “If you are in denial and you want to ban or block, then you are fighting against the tide of consumers who really want this product. Therefore it’s much better to regulate…”

Gibraltar has enacted the world’s first dedicated prediction market regulatory framework. Such regimes remain exceptional across Europe, where regulatory sentiment has stayed predominantly hostile.

Where Regulatory Divergence Bites

The Czech action exposes the concrete risk that US CFTC approval carries no weight in most European jurisdictions. Operators must therefore treat each market separately, either securing gambling licences or pressing for tailored frameworks, or accept blocked access and the resulting limits on legitimate European growth.

Reporting: SBC News

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