Polymarket lobbies Europe to include prediction markets under MiFID regulation

According to FT, the prediction market platform Polymarket is conducting regulatory lobbying in the UK, Brussels, and several EU countries, hoping that its prediction market contracts will be classified as financial derivatives and included under financial service regulations like MiFID, rather than continuing to be subject to various national gambling regulations.

The company has engaged with agencies such as ESMA, the European Commission, and the UK FCA, and is seeking to obtain a license in Europe. Polymarket is currently raising funds at a valuation of over $20 billion. Several European countries maintain strict regulations on retail prediction markets, and regulatory authorities in the UK, France, Germany, and Italy have previously indicated that related businesses may require gambling licenses.