Following an investigation by the French gambling regulatory authority, Autorité Nationale des Jeux (ANJ), Polymarket has suspended new bets from French users.
This proactive measure was taken while the operations of Polymarket were under review to determine their compliance with French gambling laws.
According to reports, the ANJ's investigation was initiated by a French trader who heavily bet on Donald Trump winning the U.S. presidential election.
Based on an analysis by Chainalysis, the trader used multiple accounts and is estimated to have profited over $85 million from these bets.
Although France allows sports and poker betting, the legality of prediction markets remains unclear.
Headquartered in New York, Polymarket allows users to bet on outcomes of various global events ranging from elections to financial trends.
While French users can still access the platform for information, they are temporarily unable to trade.
A spokesperson for Polymarket explained that this move is a precautionary measure as the platform engages with French authorities to clarify its position and operations.
This is not the first time Polymarket has faced regulatory challenges. In 2022, the platform reached a settlement with the U.S. Commodity Futures Trading Commission (CFTC) over allegations of providing illegal gambling services.
As part of the settlement, Polymarket ceased its operations in the U.S. However, reports indicate that U.S. users have circumvented the restrictions by using virtual private networks (VPNs).
Consequently, the U.S. Department of Justice is investigating Polymarket for allegedly continuing to accept trades from U.S. users.
As part of this controversy, it was reported earlier this month that the residence of Polymarket CEO Shayne Coplan was raided by the Federal Bureau of Investigation.
Although Coplan was not arrested or detained, his phone and computer were reportedly confiscated from his home.
