Polymarket, a prominent prediction market platform, has restricted trading access to customers in France. This ruling comes after an examination by France's gambling regulating organization, the Autorité Nationale des Jeux (ANJ).
The investigation began after a French user named Théo wagered a whopping $30M on the 2024 U.S. presidential race. Théo won nearly $80M from his bet.
ANJ expressed concern over Polymarket's operations. They argue that, notwithstanding the use of crypto, the platform's actions constitute betting. This practice is illegal by French gaming rules.
Polymarket has faced similar issues before. The platform reached a $1.4M settlement with the U.S. Commodity Futures Trading Commission in 2022. As a result of its unregistered status, operations for American users ceased. Polymarket was founded in 2020 and has received major investment. Vitalik Buterin, co-founder of Ethereum, is one of its backers. The French suspension underscores the increasing regulatory pressure on decentralized prediction markets. It highlights the delicate relationship between these platforms and traditional gaming rules.
While the website is still accessible in France, users may no longer engage in trading operations. This development may pose issues for comparable platforms operating in regulated markets.
