European regulators escalated enforcement against Polymarket on July 16 and July 13, with France's gambling authority ordering internet service providers to block the platform after detecting 578,751 visits from France in June 2026, and the Czech Republic adding Polymarket to its unauthorized gambling list requiring ISP blocks within 15 days.
In contrast, the United States has licensed event-contract exchanges under derivatives law, with Kalshi operating as a CFTC-designated contract market since 2020. However, a legal split has emerged: a New York court rejected Kalshi's argument that federal derivatives law preempts state gambling enforcement, while New Jersey's court accepted federal preemption. On April 2, the CFTC sued Arizona, Connecticut and Illinois to block state-level regulation of federally listed event contracts, creating competing frameworks for prediction-market access across jurisdictions.