Lithuania Orders Immediate Block on Polymarket for Unlicensed Gambling

Lithuania's gambling regulator has directed communication and payment providers to block access to Polymarket, defining the platform's prediction market activities as unlicensed gambling. This marks the first formal regulatory enforcement against a prediction market in Lithuania, underlining the regulator’s stance that such business models fall within the country’s online gambling restrictions.

Lithuania Targets Polymarket for Unlicensed Gambling Operations

The Lithuanian Gambling Supervisory Authority concluded that Polymarket, operated by Adventure One QSS, Inc., was offering forms of betting in violation of local law. Following an administrative court decision, the regulator issued binding instructions to internet service providers to block the site and ordered payment service providers to end all transactions with the operator. The move follows similar actions by regulators in France, Germany, Italy, the Netherlands, and Spain, where access to Polymarket has also faced restrictions or bans.

“Although the website stated that it provided the opportunity to participate in a ‘prediction market’ – a system in which participants trade with each other by buying or selling their predictions of the outcome of an event, the investigation identified signs of gambling. Such gambling was offered without a licence and permit.” — Lithuanian Gambling Supervisory Authority

The regulator noted that this is the first time it has taken legal measures against a prediction market operator, suggesting that platforms using this model are not immune to the same scrutiny as traditional betting operators.

Enforcement Mechanisms and Market Impact

Binding instructions were distributed to both ISPs and payment firms, creating a multi-layered blockade against Polymarket’s activities in Lithuania. The Supervisory Authority’s enforcement included:

• Mandatory access blocking for end-users via all Lithuanian ISPs
• Suspension of payment processing for Adventure One QSS, Inc. by payment service providers

This dual approach aims both to prevent customer access to the Polymarket website and to disrupt any remaining financial flows to the operator.

The regulator’s move comes amid broader discussions over unlicensed online gambling in Lithuania. Over 2,200 websites have now been blocked under current enforcement initiatives, demonstrating an ongoing commitment to clamping down on the black market.

Polymarket’s Regulatory Issues Across Europe

The action against Polymarket in Lithuania is consistent with a coordinated European trend. In markets including France, Germany, Italy, the Netherlands, and Spain, regulatory authorities have intervened to curtail access to the platform. Officials maintain that, regardless of branding as a ‘prediction market’, these services are functionally equivalent to unlicensed gambling under national statutes.

Prediction markets operate by allowing participants to trade contracts based on the outcomes of real-world events. Regulators argue that where real money is involved—and prizes or winnings are distributed—these platforms must adhere to the same licensing requirements as other remote gambling operators. Polymarket has faced regulatory scrutiny in several European countries for not holding appropriate licences.

Payment Processing and the Broader Risk Landscape

Unlicensed gambling remains a controversial topic in Lithuania. The European Gaming and Betting Association (EGBA) recently highlighted the role of Lithuanian fintech company Walletto, which allegedly processed payments for illegal online gambling platforms. The Supervisory Authority’s instructions to cut off Polymarket’s payment channels reflects a stricter policy line both on national operators and on financial intermediaries that facilitate cross-border gaming.

Regulatory Outlook for Prediction Markets

The Lithuanian Supervisory Authority’s action—its first against a prediction market—signals that innovation in remote gambling models does not exempt platforms from regulatory compliance. The authority’s record of blocking a large number of unlawful sites and its partnership with the courts and payment providers establishes a precedent for future regulatory responses to new betting products. Operators targeting the European market must now weigh the risk of enforcement even for models that position themselves outside the traditional betting sector.