ESMA Warns Polymarket, Kalshi Lack EU Authorization

ESMA's intervention matters less for what it says about two platforms than for the regulatory ambiguity it exposes: event contracts can be read as financial instruments, MiCA crypto assets or gambling, with no settled EU-wide classification. That uncertainty affects every prediction-market operator seeking EU users, not just these two. The pointed skepticism toward country-level restrictions is notable, since VPN-bypassable blocks are the core enforcement gap. Whether ESMA's framing hardens into formal guidance or member-state action is the open question.