Prediction market platform Polymarket has restricted access to French traders following an investigation by France’s national gaming authority, the ANJ, into compliance with gambling laws.
As reported on Friday, French users were blocked when they tried to access the platform via a VPN. The ban has not yet been officially added to Polymarket’s terms of service.
Major countries 'touching' strong regulatory standards for polymarkets
The investigation stemmed from a large bet by French traders that Donald Trump would win the 2024 U.S. presidential election, which raised concerns about the platform’s operations in France. Related Articles
A French journalist highlighted this restriction on social media, drawing attention to Polymarket's legal woes.
The platform allows cryptocurrency-based betting on political events, sports, and other outcomes, and gained popularity during the US presidential election.
“Even if Polymarket uses cryptocurrencies, it is still a betting activity and this is not legal in France,” a source close to the gambling regulator, the National Gaming Authority (ANJ), explained, according to French journalist Gregory Raymond on X (formerly Twitter).
According to reports, users wagered more than $3.2 billion during the election period. The platform recorded a record trading volume of $294 million on November 5. Before the results were announced, Trump had a 67% chance of winning on Polymarket.
However, later studies suggested that as much as 30% of the trading activity on the platform may be related to wash trading, with the platform believed to be used for repeat trading to inflate market activity.
These practices can distort public sentiment and lead to additional betting.
Additionally, the platform reportedly paid out significant amounts to major bettors after the election, with three high-stakes traders making a combined $47 million . The largest single payout was $24 million.
After the election, the FBI seized electronic devices belonging to Polymarket CEO Shane Coughlan. According to sources, the seizure was related to market manipulation allegations. No formal charges or arrests were made.
Despite these regulatory concerns, the platform recently reported plans to launch its own token . The platform appears to be attempting to maintain its popularity beyond the high interest of the election. However, more regulatory hurdles are expected.
