Polymarket has been speaking with regulators in the European Union and the UK to persuade them to treat it as a financial services group, according to the Financial Times. That way, it wouldn’t be subject to gambling laws and could overturn its ban in Spain and France. Polymarket, if you’re not familiar with it, is a “prediction market” website that offers users a way to bet on the outcome of future real-world events, including elections, sports matches and tournaments, box office openings and even international conflicts. 

The company reportedly talked to the European Commission and the European Securities and Markets Authority (ESMA), in hopes that they would agree to regulate it under MiFID rules. MiFID, or Markets in Financial Instruments Directive, is the EU law with standardized rules for investment services. EU nations have different gambling laws, which would make it difficult for Polymarket to operate in the region. The company’s representatives have also reportedly met with Nikhil Rathi, the chief executive of Financial Conduct Authority (FCA), the UK’s regulator for financial services firms and markets. 

Spain blocked both Polymarket and Kalshi in the country back in May, while it investigates their legality to operate without a gambling license. In July, France ordered ISPs to block locals’ access to Polymarket in its country. Under current rules, Polymarket is required to secure a gambling license in EU countries. The UK’s FCA previously said that while it has the power to oversee prediction markets on “financial or certain climactic events,” those that offer trades on political outcomes and sports would be under the authority of the Gambling Commission. 

ESMA, as the Times notes, doesn’t seem enthused with loosening EU rules on prediction markets and recently issued a warning that they’re “rife with insider trading.” Indeed, within just the past few months, a Google employee, three political candidates and a White House staff member were caught trading on insider information on the platforms. It’s also worth noting that Polymarket has allegedly been paying social media influencers to post fake betting videos as advertisements. According to a previous report by The Wall Street Journal, half of the “winning” bets placed in those fake videos would have lost in real life.