Why Ukraine Blocked Polymarket Under New Gambling Laws

• Ukrainian regulators have now classified Polymarket as an unlicensed gambling service.
• The platform processed over $270 million in bets tied specifically to the Russian invasion of Ukraine.
• Global pressure is mounting as more countries ban the decentralised platform.

Ukrainian authorities have taken a stand against Polymarket. The National Commission for the Regulation of Electronic Communications issued a formal blocking order for the platform on January 12.

 This decision labels the site as an unlicensed gambling resource, and officials argue that the platform operates without the necessary local permissions required for betting services.

This is likely related to the surge in users wagering on the outcomes of the ongoing war and while Polymarket calls itself a prediction market, Ukraine sees it as a gambling risk.

The Regulatory Crackdown and the Ukraine-Blocked Polymarket Order

The official ban came through Resolution No. 695. This ruling forces internet service providers across Ukraine to cut off access to the domain. The government also added polymarket.com to its public register of blocked websites.

According to the commission, any platform that conducts gambling without a valid license must be restricted. This makes sure that only regulated and taxed entities can offer betting services to citizens.

Implementation of this restriction has been uneven so far. Some users report that they can still access the site, while others find it completely unreachable. 

This technical cat-and-mouse game is common with decentralised platforms. However, the legal signal is clear. Ukraine classifying the service as gambling means that it is joining a list of nations pushing back against the site.

Ethical Outrage Over $270 Million in War Bets

The most controversial aspect of the ban concerns bets on the war itself.

Authorities criticised the platform for allowing users to profit from the conflict, and data shows that over $270 million has been wagered on events linked to the Russian invasion.

These bets often focus on whether specific cities will fall or if certain military operations will succeed.

Critics argue that these markets turn human tragedy into a speculative game, and there are also reports that Polymarket used data from local intelligence projects without permission. 

This has fueled claims of “monetising cynicism.” Overall, while the platform provides market-implied probabilities, the ethical cost has become too high for the Ukrainian government. 

A List of Global Restrictions

Ukraine is not alone in its fight against the platform. Polymarket is currently restricted in 33 different countries, including France, Germany, the United Kingdom and Australia. 

Recently, the National Office for Gambling in Romania also directed providers to block the site. These nations all cite a lack of local licenses as the main reason for their actions.

The platform was also pushed out of the US in 2022 for similar reasons. However, it recently returned to the American market under strict oversight. It now offers a mobile app for sports markets that follows the CFTC. 

This shows that the platform can work with regulators when forced. Yet, many of its more controversial “event contracts” are offshore and unregulated.

The Future of Prediction Markets in War Zones

The battle between decentralisation and regulation is getting more heated every day. 

Supporters argue that it provides more accurate data than traditional polls. They believe that when people risk money, they tell the truth about what they expect.

However, when those expectations involve the death and destruction of a nation, the data starts to raise ethical questions. Ukraine has made it clear that they do not want this type of innovation.

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