ESMA Questions Legality of Polymarket and Kalshi Operations in Europe

The European Securities and Markets Authority (ESMA) has raised concerns regarding the operations of prediction markets Polymarket and Kalshi in the European Union. The regulator questioned why these platforms do not restrict access across all EU member states and expressed doubts about the effectiveness of their current access controls, such as VPN bans. ESMA noted that these platforms lack the necessary authorizations for event-outcome contracts, which may be subject to MiFID II, MiCA, or national gambling laws depending on their structure.