France’s National Gaming Authority (ANJ) is actively monitoring Polymarket, a well-known cryptocurrency-powered betting platform. The probe, which might result in a ban, follows a surge in bets on the 2024 US presidential election, underscoring the platform’s growing popularity and potential legal issues in France.
Polymarket, which debuted in 2020, allows users to make predictions on real-world events using crypto-backed wagers. This year, the platform has experienced significant growth, with bets totaling $2.5 billion as of October. Its popularity skyrocketed as people bet on election results, with some preferring former President Donald Trump. French authorities detected this trend, particularly after a French-based trader named Fredi9999 invested nearly $20 million in wagers supporting Trump, potentially earning $50 million.
Despite being based in New York and exclusively catering to American consumers, Polymarket is also accessible internationally, particularly in France. Despite its concentration on cryptocurrency, the ANJ deems Polymarket’s operations to be gambling. Under French legislation, betting activities require regulatory clearance, which Polymarket does not have. The ANJ’s concerns center on Polymarket’s structure, which resembles conventional betting rather than financial trading, categorizing it as gambling under local law.
The platform’s decentralization and reliance on blockchain technology attract many crypto enthusiasts, who perceive it as a transparent method of predicting results. However, regulatory agencies such as the ANJ believe that without user identity checks, platforms like Polymarket provide severe supervision issues, potentially promoting uncontrolled gaming activities within the country.
If the investigation establishes that Polymarket violates French gambling rules, the ANJ may take action to restrict the platform in France. This might include blocking Polymarket’s website in the country and prohibiting third-party platforms from promoting it. However, the platform’s decentralized architecture and reliance on cryptocurrency transactions may make enforcement difficult, as users may circumvent local prohibitions by using VPNs.
Polymarket’s expanding global prominence, as well as the participation of significant investors, have further fueled the discussion over how to govern blockchain-based betting platforms. The ANJ has the right to prevent illicit internet gambling, even if the platform does not particularly target French users. As ANJ continues its investigation, Polymarket’s future in France remains uncertain, paving the way for new regulatory developments in crypto betting markets.
