Polymarket Faces Shutdown in Portugal Amid Election Betting Surge

Highlights:

• Polymarket was ordered to halt operations in Portugal within 48 hours.
• Over €103 million bet on the Portuguese election triggered a regulatory response.
• Portugal joins over 30 nations restricting or banning access to Polymarket’s services.

Portugal’s gambling regulator has directed the blockchain-based prediction platform Polymarket to cease operations in the country. The Serviço de Regulação e Inspeção de Jogos (SRIJ) ordered the platform to terminate its operations within 48 hours, citing illegal betting services. The order was issued by authorities after a betting frenzy over the presidential election in the country on January 18.

Rádio Renascença reported that over €4 million was wagered on the outcome just hours before the results were declared. Overall, the market received more than €103 million ($120 million) in bets. The site is still available at the moment, but the SRIJ might request the internet service providers to block the site soon.

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

Polymarket Faces Legal Barriers in Portugal

Polymarket was founded in 2020 and allows users to bet on real-life outcomes, such as in elections and sporting events, using cryptocurrency. It operates without licensure in Portugal, where betting on political outcomes is prohibited by law.

Only casino games, horse racing, and sports betting are permitted under the online gambling legislation in Portugal under the 2015 law. According to the regulator, the platform is in breach of national policy, as political bets are not allowed. The SRIJ highlighted that the services provided by Polymarket are illegal and stated that it does not guarantee the security of the funds of users. In addition, if blocked, local users can lose their accounts and balances.

Polymarket recorded quick swings in the betting odds during the last hours of voting in Portugal. The chances that António José Seguro would win increased from 60% during the morning to almost 100% by the evening. This change occurred prior to the publication of official results. This sudden swing caused alarm about the possible action of users on the basis of leaked exit polls or insider information. Regulators further reported that they discovered the activity not recently, which led to the rapid enforcement measure.

Prediction Markets Under Scrutiny Worldwide

Polymarket has faced mounting international criticism regarding the legality of its prediction markets. Although it brands itself as a forecasting platform, authorities tend to rebrand it as unlicensed gambling. Portugal is one of the countries included in a list of restrictions or bans on Polymarket. These include Belgium, Singapore, Ukraine, and Russia. Other countries have partial access, while others have blocklisted the site entirely.

The move by Portugal aligns with measures undertaken by Hungary, which blocked the site as it conducted investigations into the alleged illegal betting activity. France and Germany have also acted to restrict user access.

Alternative platforms such as Kalshi, Myriad, and Limitless are still available in Portugal currently. The SRIJ has not yet verified any plans to exclude those services. Meanwhile, Polymarket has been pressured in the United States as well. Earlier this month, Tennessee issued a cease and desist order on the platform. Rival Kalshi was also ordered the same, but was able to obtain a temporary injunction.

BREAKING: Federal judge in Nashville issues Temporary Restraining Order to stop Tennessee from enforcing its C&D letter against @Kalshi

Hearing set for January 26 pic.twitter.com/lfqJ7gho5W

— Bill Speros (@billsperos) January 13, 2026

Currently, Polymarket is limited to more than 30 countries, reflecting ongoing regulatory challenges regarding crypto-based prediction markets.