According to CoinMeta, Polymarket is seeking to have its event contracts classified as financial products rather than gambling in Europe. The company is in communication with regulatory authorities in the UK and the EU in an attempt to gain more flexibility. Although no European regulatory body has yet approved this change in classification, this distinction is crucial as Polymarket's market covers a very diverse range of events. According to the European Securities and Markets Authority (ESMA), event contracts must be evaluated based on their content. If the contracts are classified as financial instruments, their payment structures, whether they involve gains or losses, may be subject to the restrictions imposed by national regulations on binary options sold to retail customers.