Polymarket is currently negotiating with regulators in the UK and EU about the distinction of whether its prediction markets should be regarded as financial services instead of gambling.
The objective of Polymarket is to obtain the regulations that deem its event contracts as financial products like CFTC in the USA.
The company has been subjected to restrictions in a number of European countries such as Italy, the Netherlands and France, regarding the classification of prediction markets as gambling services by the regulators.
Polymarket is said to have been in talks with authorities in London and Brussels, including the FCA, the European Commission, and ESMA.
The information claims that ESMA has been in talks with Polymarket since June already, in connection with the idea that event contracts can cover different questions, which may allow some of them to be treated as financial instruments while others are not.
If the UK Gambling Commission has not officially deemed Polymarket as an unauthorized betting provider, it is clear that any prediction market based in Great Britain cannot claim that its services are not gambling.
For Polymarket, gaining access to major European markets would also support its international expansion as prediction market operators seek to build on the rapid growth of the US sector.