Portugal Orders Polymarket Shutdown Over Illegal Political Betting Activity

TLDR

Table of Contents

Portugal’s gambling regulator SRIJ blocks Polymarket over political betting violations.
Polymarket’s €4M wagered on Portuguese elections led to a shutdown order.
SRIJ cites unlicensed crypto betting as a breach of national gambling laws.
Portugal enforces strict laws against political betting, blocking Polymarket.

Portugal shut down Polymarket after regulators said illegal political betting surged during the presidential election period. The action followed warnings about unlicensed operations and unusual market activity tied to vote outcomes.

Regulator Orders Shutdown and Network Blocks

Portugal’s gambling authority SRIJ ordered Polymarket to stop services within 48 hours. The platform failed to comply, so internet providers began blocking access nationwide. SRIJ said Polymarket lacked a valid license under Portugal’s 2015 online gambling law. The law bans political betting and requires approval for all betting services.

🚨BREAKING: 🇵🇹Portugal orders closure of Polymarket.
Regulators say prediction markets tied to political events violate national gambling laws.
Polymarket was given 48 hours to shut down operations. pic.twitter.com/LDsNnXhNRo
— Coin Bureau (@coinbureau) January 20, 2026

Officials said the platform allowed election-related markets using crypto settlement. The regulator stated this setup breaks national rules and consumer protection standards. SRIJ added that licensed operators must meet strict reporting and monitoring duties. Polymarket does not meet these requirements, according to the regulator.

Election Markets Triggered Regulatory Action

Authorities reported more than €4 million was collecte on Portuguese election markets before official results. Activity surged hours before poll closures and exit poll releases. One candidate’s probability moved from near 60% to almost 100 %. Other candidates saw rapid drops during the same period.

Regulators flagged the timing as suspicious and linked it to possible exit poll leaks. They said this pattern raises concerns about unfair information access. SRIJ said the review continues with telecom providers and cybersecurity teams. The goal is to enforce blocks and reduce further illegal access.

How Polymarket Operates and Legal Gaps

Polymarket runs a blockchain-based prediction system launched in 2020. Buyers swap outcome shares using USDC settlement tools. Each market offers yes or no outcomes with prices between zero and one unit. Buyers gain value when correct outcomes rally.

The platform operates across borders, which complicates enforcement by national regulators. Portugal said this does not remove local legal duties. Polymarket already restricts access in more than 30 countries. Portugal now joins this group following the enforcement action.

Market Promotions Mentioned During Coverage

During online coverage, Polymarket promotions referenced partner campaigns tied to MTAUR. Campaign materials mentioned incentives of 100,000 USDT and 50,000 USDT.The promotion also referenced rewards for 100 people who joined early activity programs. Regulators did not link these offers to the shutdown decision.

Public notices did not confirm the current MTAUR price during the period. The presale progress level was not stated in official filings. Listing price targets and audit reports for MTAUR were also not included in regulatory documents. Authorities focused only on illegal political betting concerns.

SRIJ said users in Portugal have no guarantee of fund recovery after access blocks. Officials warned against using VPNs to bypass restrictions. The regulator said enforcement will continue against unlicensed crypto betting services. Authorities stressed compliance with national gambling rules remains mandatory.