France’s National Gaming Authority (ANJ) is stepping up its scrutiny of Polymarket, a New York-based online prediction market platform that allows users to place bets on political events and public issues. Following Polymarket’s surge in popularity during the U.S. presidential campaign, the platform has caught the attention of French regulators who are questioning its compliance with local gambling laws.
Polymarket’s role in the U.S. election betting frenzy
Polymarket has been drawing attention for allowing users to bet on the outcome of high-stakes events, including the U.S. presidential election. The platform gained significant traction during the election period, reportedly handling betting volumes of $3.7 billion. Unlike traditional gambling platforms, Polymarket operates using cryptocurrency, which has fuelled its appeal among tech-savvy users globally.
A French trader, using aliases like “Théo” and “Fredi9999,” recently made headlines for betting millions on the victory of Donald Trump, defying poll predictions that favoured Kamala Harris. According to The Wall Street Journal, this trader anticipated substantial gains based on his unique analysis of polling data and market sentiment. He reportedly amassed around $50 million in profits, betting on various outcomes related to Trump’s electoral performance.
France’s ANJ examines legal compliance
The ANJ announced an ongoing investigation into Polymarket’s legal standing under French law. The platform’s operation in France without proper authorisation raises questions about its legitimacy. A spokesperson for the ANJ, Elsa Trochet-Mace, commented, “We are examining its operation and compliance with French gambling laws.” Sources from The Big Whale suggested that the ANJ is close to banning the platform for French users, although the ANJ has not confirmed this outcome.
French law stipulates that online gambling sites must have ANJ authorisation to operate legally within the country, a licence Polymarket lacks. The situation in France mirrors Polymarket’s previous legal challenges in the U.S., where it reached an agreement with American regulators in 2022 that restricted access for U.S.-based users. However, U.S. users continued to access the site by circumventing restrictions through VPNs, a loophole that could also apply to French users if a ban is imposed.
Broader implications and future of prediction markets in France
The outcome of ANJ’s investigation could have ramifications for cryptocurrency-fueled betting platforms, not only in France but across Europe. Polymarket’s international popularity and its ability to operate without stringent regulatory oversight have raised concerns among regulators. France’s stance on the matter could prompt similar actions in other countries aiming to control unauthorised gambling platforms that bypass traditional licensing requirements. Should the ANJ proceed with a ban, Polymarket will join a growing list of platforms restricted by France’s strict gambling regulations.
Unlock winning moments: Discover the best odds on?SiGMA Play.
