French Gaming Authority Investigates Crypto Betting Platform Polymarket
New York, July 15, 2024 – Polymarket, a cryptocurrency-based prediction market platform, is under scrutiny in France. The Autorité Nationale des Jeux (ANJ), the French gambling regulator, has launched an investigation into the platform’s operations.
Polymarket gained significant popularity and media attention after allowing users to bet on the U.S. presidential election. Now, its rising profile has caught the eye of French authorities.
The ANJ is examining Polymarket, which describes itself as “the world’s largest prediction market,” to determine its compliance with French gambling laws. The investigation was first reported by the cryptocurrency news outlet The Big Whale and later confirmed by Bloomberg.
A spokesperson for the ANJ stated, “We are aware of this site and are currently examining its operation and its compliance with French gambling legislation.” According to The Big Whale, the ANJ is preparing to ban Polymarket for French users, although the ANJ has not confirmed this.
French law requires online betting sites to obtain a specific license from the ANJ to operate legally, regardless of whether bets are placed using cryptocurrencies. Polymarket, an American platform, may not have obtained this authorization. The platform did not respond to requests for comment.
Polymarket Already Inaccessible in the U.S.
The regulator’s review comes after a trader, identified by Polymarket as French, reportedly placed substantial bets on Donald Trump’s victory. Following Trump’s election, the trader stands to gain an estimated $48 million, according to Bloomberg’s calculations.
The New York-based platform benefited from international interest in the U.S. presidential race. These bets alone generated a volume of nearly $3.7 billion, according to Polymarket’s data. The platform’s odds consistently favored Trump throughout the campaign, often exceeding traditional pollsters’ figures.
Ironically, Polymarket was frequently mentioned during the U.S. campaign despite being theoretically inaccessible in the United States since a 2022 agreement with U.S. regulators. This block can be easily circumvented using VPNs, allowing many Americans to use the platform. This situation raises questions in France as the ANJ examines the case.
Le Monde with Bloomberg
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