France considers ban on crypto betting platform Polymarket

6 days ago 8

France’s gambling regulator is considering banning the cryptocurrency prediction platform Polymarket, which has made headlines on user demand around the 2024 presidential election in the United States.

The National Gaming Authority of France, the Autorité nationale des jeux (ANJ), is investigating Polymarket’s operation and compliance with French gambling laws, Bloomberg reported on Nov. 7.

“We are familiar with this site and are currently examining its operation and its compliance with French legislation on gambling,” a spokesperson for the ANJ confirmed to Cointelegraph.

Previously, a crypto-focused publication, The Big Whale, reported that the ANJ is expected to ban access to Polymarket for French users in the near future.

What is Polymarket, and why did it catch the attention of ANJ?

Launched in 2020, Polymarket is a decentralized prediction market platform that allows users to bet on real-world event outcomes using cryptocurrencies.

The betting platform has seen huge success in 2024 amid the US election hype, reaching $2.5 billion in bets in October, according to data from Dune Analytics.

Although Polymarket is headquartered in New York, the platform is currently inaccessible to US residents. However, people in other parts of the world, like France, have been using it actively.

For example, a pseudonymous trader and an alleged French national placed at least $20 million worth of bets supporting Donald Trump as the next US president. Nicknamed Fredi9999, the Polymarket user is expected to see nearly $50 million in profits across four identified accounts, according to Bloomberg.

Polymarket is a betting activity

Polymarket is subject to France’s gambling laws despite being related to cryptocurrency, a source close to the ANJ told Bloomberg.

“Even if Polymarket uses cryptocurrencies in its operations, it remains a betting activity, and this is not legal in France,” the source reportedly said.

According to William O’Rorke, partner at ORWL Avocats, Polymarket consists of betting money on something random, and that’s strictly the definition of gambling, so it is like a sports bet. He stated:

“Unlike financial companies, the ANJ has the power to block the platform even though Polymarket does not specifically target French users.”

Polymarket has played a role in the 2024 US presidential election. According to CEO Shayne Coplan, Trump’s campaign team “literally found out they were winning from Polymarket.”