Portugal Shuts Polymarket After €4M Election Bets

* Portugal’s gambling regulator orders Polymarket to cease operations. * A surge in trading tied to Portugal’s presidential election prompted the action. On January 20, 2026, Cryptopolitan reported that Portugal's gambling regulator, the Serviço de Regulação e Inspeção de Jogos (SRIJ), instructed Polymarket to halt operations within the country. The blockchain-based prediction market platform must comply with the shutdown order within 48 hours. The regulator's action stems from concerns over unlicensed political betting, a practice that Portuguese law strictly prohibits. The SRIJ issued the directive after trading volumes on Polymarket surged in connection with the nation’s presidential election. Just moments before officials announced results from Portugal’s first election round, traders had bet over €4 million on the platform. As a result, this activity raised concerns that leaked exit poll data may have influenced betting as the election unfolded. The SRIJ stated that Polymarket violated national regulations because it offered unauthorized betting on political events. Portuguese law expressly forbids gambling on political outcomes, and the controversy now raises questions about election integrity. This crackdown aligns with similar actions against Polymarket in other countries, including France, Ukraine, and Romania. Consequently, global regulators are intensifying their scrutiny of prediction markets and how they intersect with gambling laws. Despite the impending ban, trading related to Portugal’s second presidential election round continues to thrive on Polymarket, with volumes surpassing $121 million. Polymarket is known for gauging real-time political sentiment, but it has also ignited debates about its impact on elections, with critics highlighting its regulatory complications. The challenges surrounding decentralized finance (DeFi) platforms remain a contentious issue as governments worldwide confront their legal gray zones and connections to gambling practices.