The European Securities and Markets Authority (ESMA) is raising red flags about Polymarket and Kalshi’s operations in the European Union. According to the regulator, both platforms are selling event outcome contracts without the licenses typically required for this kind of activity in the EU. ESMA is also questioning the way these platforms restrict access for users from certain EU countries, calling the approach selective.

What Exactly Is ESMA Concerned About?

ESMA pointed out that neither Polymarket nor Kalshi holds the authorizations needed to offer event-based contracts within the eurozone. The regulator also highlighted the inconsistent geo-blocking policies: “It’s unclear why not all EU member states are included in the list of restricted jurisdictions.”

How These Platforms Restrict EU Users

Both Polymarket and Kalshi only block users from some EU countries. Polymarket, for example, denies access to traders from Germany, France, Italy, and the Netherlands. Kalshi’s user agreement also lists bans for several EU countries. This selective geo-blocking is exactly what caught ESMA’s attention and led to further scrutiny from the European regulator.