France considers ban on Polymarket amid regulatory scrutiny
French regulator evaluates Polymarket compliance with gambling laws over US election bets
The National Gaming Authority of France (ANJ) is investigating Polymarket, a decentralized cryptocurrency-based prediction platform, over concerns that it may violate French gambling laws.
Polymarket has garnered significant attention due to its surge in user activity surrounding the 2024 U.S. presidential election, reports Cointelegraph.
According to Bloomberg’s report on November 7, the ANJ is assessing Polymarket's operations, with a spokesperson confirming, “We are familiar with this site and are currently examining its operation and its compliance with French legislation on gambling.”
Polymarket, launched in 2020, allows users to place bets on real-world events using cryptocurrencies. The platform, which is based in New York but restricted to non-U.S. users, saw a record $2.5 billion in bets in October, largely driven by interest in the U.S. election. Despite its U.S. headquarters, Polymarket remains accessible in countries like France, where it has attracted significant betting activity, including a reported $20 million wager from a French user supporting Donald Trump’s presidential bid.
Legal Challenges and the Definition of Gambling
The ANJ’s concerns stem from French gambling regulations, which treat Polymarket’s prediction markets as betting, regardless of the cryptocurrency involved. According to William O’Rorke, partner at ORWL Avocats, Polymarket’s activities qualify as gambling under French law, as they involve betting on uncertain outcomes, similar to sports betting. This definition gives the ANJ authority to potentially block Polymarket in France, even if the platform does not specifically target French users.
If ANJ proceeds with the ban, Polymarket would join a list of platforms restricted under France’s strict gambling regulations, underscoring the challenges decentralized prediction markets face in jurisdictions with stringent betting laws. Polymarket's CEO, Shayne Coplan, highlighted the platform’s role in the election, noting that Trump’s campaign team reportedly followed Polymarket’s odds to gauge voter sentiment. However, with potential legal hurdles on the horizon, Polymarket’s access in France may be limited in the near future.
Recentrly we wrote, that an investor under the pseudonym Theo has placed multiple bets totaling $30 million on the prediction platform Polymarket.
