Polymarket Blocks French Users Amid ANJ Investigation into Gambling Compliance
Polymarket has restricted access for French users following an investigation by France’s National Gaming Authority (ANJ). The regulator is examining the platform’s compliance with local gambling laws, marking another regulatory challenge for the company.
ANJ Investigation Triggered by High-Profile Bet
The restrictions emerged after reports of a French trader winning a significant bet on Donald Trump’s potential victory in the 2024 US presidential election. This incident likely prompted ANJ to scrutinize Polymarket’s offerings and assess their alignment with French gambling regulations.
The platform allows users to bet on real-world events, including politics and sports, which ANJ deems subject to its oversight.
Mixed Results for French Users Accessing the Platform
Polymarket’s efforts to block French users appear to be more stringent than previous measures, with reports indicating that some users cannot access the platform even through VPNs.
However, others have reportedly managed to bypass these restrictions. While Polymarket has yet to update its terms of use to formally reflect the ban, these actions suggest a move to comply with ANJ directives.
Allegations of Market Manipulation Persist
The platform has faced recurring allegations of unethical practices, including wash trading. Recent reports claim that up to 30% of Polymarket’s trading activity may involve wash trading—where traders repeatedly buy and sell assets to create an illusion of high activity.
Such practices could distort market sentiment and potentially mislead participants, raising serious regulatory and ethical concerns.
High Stakes and Regulatory Scrutiny
Polymarket gained notoriety during the latest US election cycle, with user bets reportedly exceeding $3.2 billion. High-volume bettors, including one individual who allegedly secured $20.4 million in payouts, brought further attention to the platform’s fairness and transparency. French journalist Grégory Raymond commented on the situation:
“Even if Polymarket uses Crypto in its operation, it remains a betting activity and is not legal in France, a source close to the ANJ explained to me.”
CEO Investigated Amid Broader Probes
Polymarket’s CEO, Shayne Coplan, is also under investigation. The FBI reportedly confiscated Coplan’s electronic devices as part of an inquiry into possible market manipulation. While no charges have been filed, the investigation has intensified scrutiny on the platform, raising questions about its long-term viability.
