France Blocks Polymarket: Tough Stance Against Unregulated Prediction Markets

France is taking a hardline stance against unregulated prediction markets. The national gambling authority, the Autorité Nationale des Jeux (ANJ), has now ordered internet service providers (ISPs) to block access to the Polymarket platform. The ANJ states this constitutes a violation of the country's gambling laws. Advertising such services can lead to fines of up to $114,000.

The French action is part of a broader European initiative. Countries such as Germany, Italy, and Spain have already taken similar steps. This demonstrates how seriously European regulators are addressing the problem of rapidly proliferating unregulated prediction markets.

Numbers and facts

French internet service providers must block access to Polymarket at a national level. This is a direct order from the ANJ. The authority considers Polymarket to be in violation of national gambling laws. Polymarket itself denies this. The ANJ points out that any advertising for unauthorized betting or gambling sites is a criminal offense. Fines of up to $114,000 can be imposed for such offenses.

The effectiveness of this ban remains to be seen. Polymarket recorded 578,751 visits from France in June alone. This represents a significant user base. This case illustrates a larger trend in Europe. Several countries are actively cracking down on unregulated gambling offerings. These include Germany, Italy, and Spain. The Dutch Kansspelautoriteit (KSA) already imposed a penalty order of up to €840,000 against Polymarket in 2022. The company Adventure One QSS, which operates Polymarket, was found to be operating without a license.

Background

Prediction markets are experiencing a boom across Europe. These so-called "trades" often involve political bets. However, military conflicts in Venezuela, Iran, and Ukraine, as well as sports results, are also being traded. Even the type of sentence a suspect might receive in prominent legal cases becomes an object of betting. This development concerns regulators. They fear insider trading and a lack of player protection. In the US, Polymarket already faced a $1.4 million civil penalty in 2022. The US Commodity Futures Trading Commission considered these unregistered binary options.

The Dutch KSA found that Polymarket accepted payments from Dutch banks. Mastercard payments were routed through a Dutch bank. Payment instructions even appeared in Dutch. This indicates active targeting of Dutch customers. The KSA rejected Polymarket's defense that it was not traditional gambling. Ella Seijsener, director of licensing and supervision at the KSA, emphasized:

"Prediction markets are on the rise, including in the Netherlands. These types of companies offer bets that are not permitted in our market under any circumstances, not even by license holders. Besides the social risks of these kinds of predictions – for example, the potential influence on elections – we conclude that this constitutes illegal gambling. Anyone without a license has no business in our market. This also applies to these new gambling platforms." - Ella Seijsener, Director of Licensing and Supervision at the KSA

Many European authorities treat prediction markets as either illegal gambling or unlicensed financial instruments. France's ANJ warned that these platforms "are not authorized in France and are considered illegal gambling services." They exhibit addictive characteristics without the protective mechanisms present in the legal gambling market. This includes a lack of spending limits or identity verification. Countries like Germany, Belgium, Portugal, Switzerland, Romania, and Poland have already blocked access to Polymarket.