Customs and Monopolies Agency Re-Imposes Domain Block on Crypto Predictions Platform as Illegal Gambling Operator
Crypto-based predictions market Polymarket has been placed back onto Italy’s official blacklist of unauthorized gambling websites for the second time. Local media outlet Agipro reported that the country’s Customs and Monopolies Agency (ADM) officially added the New York-headquartered platform to its registry of blocked digital domains.
The regulatory move effectively categorizes Polymarket as an unregulated, offshore gambling operator, a classification the platform has historically rejected, consistently asserting that its prediction contract services function as a financial services utility rather than traditional sports betting.
Legal Reversals and Local Industry Backing
The enforcement action marks an escalation in an ongoing legal tug-of-war. The ADM initially blocked Polymarket in late 2025, but the platform was permitted to resume localized operations in December following legal appeals brought before the Regional Administrative Court (TAR) of Lazio.
By reinstating the digital block, the ADM is now required to file an official briefing with the Rome Public Prosecutor’s Office to determine if the platform’s unauthorized activities warrant criminal prosecution.
The regulatory crackdown was widely praised by executives representing Italy’s heavily taxed, legally compliant online betting operators, a sector that logged €333.7 million in gross gaming revenue (GGR) in December 2025 alone following the deployment of a new 46-license holder framework.
Stefano Tino, Managing Director of Betsson’s Southern Europe operations, publicly backed the regulator’s stance on LinkedIn:
“I was pleased to learn that Polymarket has now been added, again, to the ADM blacklist of unauthorised gambling websites in Italy. I would like to congratulate the Italian regulator for reaffirming what I believe is a fundamental principle of every regulated market: the same rules must apply to everyone. Licensed operators invest significant resources to obtain and maintain their licences, comply with AML and responsible gambling obligations… It is only fair that they compete on a level playing field.”
The $22 Million Sponsorship Crisis at SS Lazio
While licensed operators celebrated the regulatory decision, the enforcement drops a massive financial complication onto Serie A football club SS Lazio. In April 2026, the Rome-based club finalized a highly lucrative, multi-year deal naming Polymarket as its primary partner. The contract covered the final stretch of the 2025/26 season through the 2027/28 cycle, with an extension option for 2028/29.
The agreement brought a massive influx of capital to a club that had spent nearly three years without a main shirt sponsor, guaranteeing Lazio a total of $22 million (€19 million). However, because Italian penal law strictly prohibits the advertisement and promotion of unauthorized betting platforms, Lazio may be legally forced to terminate the deal prematurely.
Furthermore, Italy has enforced a comprehensive ban on all gambling marketing since the implementation of the 2018 “Dignity Decree”. While other clubs have navigated these barriers by partnering with operators’ unbranded “infotainment” or media divisions, such as AS Roma’s deal with Eurobet.live or Napoli’s contract with bet365 Scores, Polymarket’s direct blacklisting leaves the club with very little legal room to maneuver.
Global Fragmentation of Prediction Market Valuations
The escalating friction in Rome mirrors a broader, highly volatile regulatory climate across international jurisdictions as prediction platforms pursue massive corporate valuations.
Global Regulatory Overview: Prediction Markets
| Jurisdiction | Regulatory Body / Authority | Active Legal Stance & Market Impact |
| Italy | Customs and Monopolies Agency (ADM) | Domain blacklisted for a second time; referred to Public Prosecutor. |
| Spain | DGOJ | Accused both Polymarket and main rival Kalshi of operating without a license. |
| France | ANJ | Declared predictions illegal; compared platforms to high-risk crypto speculation. |
| South Korea | KISC | Monitoring closely; issued a formal right-to-respond mandate prior to blocking. |
| United States | CFTC | Favorable landscape; federal agency backs platforms in ongoing legal battles with states. |
| Gibraltar | Licensing Authority | Emerging hub; issuing official betting intermediary licenses to firms like Predictstreet. |
Despite a coordinated “predictions market monitoring coalition” formed by nine separate European regulators ahead of the FIFA World Cup, the intensifying enforcement actions have done little to dampen investor enthusiasm. Polymarket is currently targeting a corporate valuation of $15 billion, while Kalshi sets its sights on achieving a milestone valuation of $40 billion.
