ESMA flags Polymarket and Kalshi over EU authorization for event contracts

  • ESMA flags Polymarket and Kalshi for lacking required EU authorizations
  • ESMA questioned the effectiveness of restrictions in some member states
  • Event contracts may fall under EU financial rules depending on their nature

Polymarket and Kalshi do not hold the authorizations required to sell event-based contracts in the European Union, the European Securities and Markets Authority said in a published report. ESMA also questioned whether restrictions on users in some member states effectively limit access. Contracts linked to asset prices and political or sports outcomes can fall under EU financial-market rules depending on their characteristics.

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