Polymarket, a leading crypto-based real-world event prediction platform, has taken steps to block French users in response to an investigation by France’s National Gaming Authority (ANJ) into its compliance with the country’s gambling laws. The platform, which allows users to bet on political, sports, and other events, has faced ever-increasing scrutiny, including in the USA.
Users Attempting Access Report Mixed Results
The new restrictions emerged after reports that a French trader had won a substantial bet on Donald Trump’s 2024 US presidential election victory. This high-profile win was likely the last straw that caused ANJ to launch an in-depth review of Polymarket’s operations. The regulator will now determine whether the company’s offerings comply with French gambling laws.
New reports indicate that Polymarket has been more thorough than usual with this ban, as some French players cannot access the platform even via using a VPN. However, others reported successfully evading these restrictions. While Polymarket has not officially updated its terms of use to reflect the ban, the platform appears to be attempting to comply with ANJ directives.
Polymarket has repeatedly faced allegations of market manipulation. Recent reports alleged that up to 30% of the platform’s trading activity may be linked to wash trading, where traders repeatedly buy and sell assets to create the illusion of high market activity. These practices can distort public sentiment and entice new participants, raising ethical and regulatory questions.
Polymarket Gained Notoriety During the US Elections
During the latest US election cycle, Polymarket reportedly saw $3.2 billion in user bets. High-volume bettors allegedly received hefty payouts, with one individual securing $20.4 million, sparking further questions about the fairness and transparency of the platform. French journalist Grégory Raymond noted that using Crypto did not mean it could avoid gambling regulations.
Even if Polymarket uses Crypto in its operation, it remains a betting activity and is not legal in France, a source close to the ANJ explained to me.
Grégory Raymond
Polymarket’s CEO, Shayne Coplan, also became a target of an investigation. The FBI reportedly confiscated Coplan’s electronic devices as part of a broader probe into possible market manipulation. Although no formal charges have been filed, the raid has intensified pressure on the platform, raising concerns about its future.
As Polymarket attempts to stabilize its operations, it faces an uphill battle to restore trust in its operations and meet international regulatory requirements while mitigating the damage caused by allegations of market manipulation. While the ANJ’s investigation is unlikely to affect the platform’s status in other European nations, it reflects a broader trend of decentralized platforms encountering regulatory friction.
