Key points:
- Polymarket has blocked French users from making new bets amid an investigation by France’s gambling regulator, ANJ
- The probe followed massive election-related bets by a French trader with potential profits exceeding $85m
- The platform has previously faced regulatory challenges in the US and is under ongoing investigation by the US Justice Department
Polymarket has suspended new bets from French users following an investigation by the country’s gambling regulator, the Autorité Nationale des Jeux (ANJ).
This proactive measure comes amid scrutiny over whether Polymarket’s operations comply with French gambling laws.
The ANJ’s investigation was reportedly prompted by a French trader who made significant bets on Donald Trump winning the US presidential election.
According to analysis from Chainalysis, the trader, using multiple accounts, had an expected profit of over $85m from these bets.
Although betting on sports and poker is permitted in France, the legality of prediction markets remains ambiguous.
Polymarket, headquartered in New York, allows users to place bets on the outcomes of various global events, ranging from elections to financial trends.
While French users can still access the platform for information, they are temporarily restricted from engaging in trades.
A spokesperson for Polymarket explained that the move was a precautionary step as the platform engages with French authorities to clarify its position and operations.
This isn’t the first time Polymarket has faced regulatory challenges. In 2022, the platform settled with the US Commodity Futures Trading Commission (CFTC) over allegations of offering illegal gambling services.
As part of the settlement, Polymarket ceased operations in the US. However, reports suggest that US-based users have circumvented restrictions by using virtual private networks (VPNs).
The US Justice Department is therefore investigating Polymarket for allegedly continuing to accept trades from US users.
As part of this controversy, Polymarket’s CEO, Shayne Coplan, reportedly had his house raided by the FBI earlier this month.
Though he was not arrested or taken into custody, it was reported that Coplan’s phone and computer were seized from his home.
