Irish authorities have launched an investigation into unusual betting on Polymarket, which now goes beyond election betting. It also includes money laundering and unclear crypto flows. According to the Irish Times, it examined a report on betting activity related to the Dublin Central by-election. Some accounts indicate they have placed bets against candidate Gerry Hutch.
Concerns over crypto flows
Under the Gambling Regulation Act, Ireland’s gambling laws were overhauled in 2024. They then came into force in February 2026. The law establishes the Gambling Regulatory Authority of Ireland (GRAI) and introduces strict licencing rules, giving regulators stronger authority to combat problem gambling, money laundering, and unlicensed operators.
But officials believe Polymarket’s reach goes beyond election betting. Investigators are now examining whether the platform is being used for cryptocurrency transactions and potential money laundering rather than for legitimate market forecasting.
Crypto prediction markets remain in a regulatory grey zone since they blur the line between gambling and financial speculation. This raises the question of whether platforms like Polymarket should be treated as gambling sites, financial derivatives, or a hybrid, and whether that should mandate new rules.
The last few years saw the rise in interest in prediction markets, generating billions in trading volumes while also attracting legal challenges across various jurisdictions.
Still, advocates argue that they are using the “wisdom of the crowd” to better predict events rather than the traditional polls. Additionally, fintech innovators reveal these platforms are part of a broader ecosystem that blends speculation with data-driven insights.
Government response
According to the Central Bank of Ireland, it does not directly regulate gambling. But it plays a key role in monitoring financial flows, enforcing anti-money laundering (AML) rules, and ensuring consumer protection. Its oversight cuts across gambling regulation when platforms involve cryptocurrency, cross-border payments, or suspicious transactions.
Finance Minister Simon Harris confirmed the investigation and detected two main issues. The first is whether crypto-based prediction markets should be categorised under gambling regulations. The latter is whether loosely regulated platforms could enable financial crime through hidden flows of money.
💬 "Capital, Competition, and Complexity – regulatory perspectives on the regulatory debate" – read remarks by Mary-Elizabeth McMunn (Deputy Governor, Financial Regulation) at Banking and Payments Federation Ireland. https://t.co/vYXSmtgRtF pic.twitter.com/HwUt6PVqV9
— Central Bank of Ireland (@centralbank_ie) May 7, 2026
European context
Harris puts the investigation within a wider European debate. EU policy on crypto betting is shaped by two major frameworks: MiCA (Markets in Crypto-assets Regulation) and DAC8 (tax reporting rules). Together, they end anonymous crypto gambling in Europe by requiring strict licencing, KYC/ AML compliance, and traction reporting in 2026.
But a growing number of legislators in Europe have become increasingly uneasy with offshore betting platforms and crypto transactions. They argue that they blur the lines between gambling, speculative finance, and unregulated derivatives, according to several media outlets.
Crypto-based betting platforms also present significant money laundering risks. Cryptocurrency transactions, for one, have been known to be immediate, borderless, and often anonymous. Regulators point to the loopholes that online gambling and crypto create, where illicit actors can move their funds undetected.
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