- French gambling regulator Autorite Nationale des Jeux (ANJ) said it is examining the operations of Polymarket, a crypto-based prediction market.
- The scrutiny comes after a French national profited significantly by placing large bets on Polymarket that Donald Trump would win the U.S. election.
- Polymarket allows traders to buy and sell shares representing future outcomes, with payouts in the USDC stablecoin if the prediction comes true.
The French gambling regulator is looking into Polymarket‘s operations after a French bettor made headlines for correctly predicting Donald Trump‘s election win. Polymarket allows users to trade shares representing future outcomes. Read on for more details about the platform and the regulatory scrutiny it now faces.
Polymarket’s Operations
Polymarket is a cryptocurrency-based prediction market that lets traders buy and sell shares representing potential future events. A share pays out $1 if the event happens. The share prices represent the odds of each outcome occurring.
Polymarket saw record betting volumes around the recent U.S. presidential election. A French bettor known as Theo made headlines by placing large, successful bets that Trump would win. According to reports, Theo stands to earn $50 million from his Polymarket trades.
Regulatory Concerns
The French gambling regulator, Autorité Nationale des Jeux (ANJ), says it is now examining Polymarket’s operations. ANJ regulates licensed gambling platforms in France.
ANJ says it is looking into whether Polymarket complies with French gambling laws. A source told a French crypto publication that Polymarket’s betting activities are illegal in France, even if it uses cryptocurrency.
Polymarket is based in New York but blocks U.S. IP addresses. This is due to a settlement with the Commodity Futures Trading Commission (CFTC). The CFTC said Polymarket lacked proper licensing to operate in the U.S.
Polymarket relies on users outside of the U.S. It declined to comment on the French regulatory scrutiny.
Conclusion
Polymarket is coming under review by French authorities after a bettor profited hugely by predicting Trump’s election win. The CFTC has also previously raised concerns about the regulatory status of the prediction market platform. The situation highlights the legal gray area that many crypto-based betting sites operate in globally. Regulators are still assessing how to oversee these emerging platforms and activities.
