Regulatory Ban Arbitrage on Polymarket Restrictions

When the report notes Spain blocks Polymarket, the strategy assumes that Spanish market makers and retail traders are excluded, creating temporary inefficiencies in markets with Spanish-language keywords (e.g., 'La Liga', 'Madrid'). The bot monitors order books for widened spread beyond 3% on relevant contracts. It places a buy at the best bid and sells at the best ask using a relayer node that bypasses the geo-block. Position is held until the spread normalizes below 1% or after 2 hours. In a simulated dry run, it captured 0.4 ETH in four hours across three contracts. The implementation uses a custom VPN rotation service (NordVPN API) and a Flask-based order router that signs transactions through an unblocked Polygon RPC endpoint.