Polymarket Blocks French Users Amid Gambling Law Investigation and Multimillion-Dollar Trump Bet

Polymarket, a blockchain-based prediction platform, has taken swift action to block users in France following a probe by the country’s gambling regulator, the Autorité Nationale des Jeux (ANJ). The restriction prevents French users from placing bets or trading on the platform but still allows view-only access. This development highlights the mounting regulatory pressure on platforms operating at the intersection of blockchain, gambling, and financial markets.

Regulatory Scrutiny and the Trump Bet

The investigation by the ANJ reportedly began after a French trader, operating under the pseudonym “Théo,” made headlines with massive wagers on Donald Trump’s outcome in the 2024 U.S. presidential election. According to Fortune, Théo placed bets exceeding $30 million and ultimately walked away with a staggering $80 million in profits.

This high-stakes activity raised red flags among regulators, who expressed concerns about potential market manipulation and insider trading. The unprecedented scale of Théo’s betting activity has brought Polymarket under intense scrutiny in France, where gambling laws are particularly stringent.

Gambling Laws in France

Under French law, unlicensed betting platforms are strictly prohibited, and the ANJ actively enforces compliance. Polymarket, which enables users to wager on the outcomes of real-world events using cryptocurrency, operates in a regulatory gray area. While blockchain technology provides transparency, it also complicates compliance with national laws.

The ANJ’s investigation may have been a key factor in Polymarket’s decision to restrict French users. Reports suggest that the platform sought to preempt further regulatory action by imposing restrictions on its own.

Polymarket’s Restrictions on French Users

As of now, French users can no longer place bets or trade on Polymarket. However, the platform remains accessible in a limited capacity, allowing users to view markets but not participate in them. Screenshots shared on X (formerly Twitter) and reviewed by crypto.news confirm this limited access.

Polymarket’s actions signal an effort to align with French gambling laws, but they also raise questions about the platform’s future in other jurisdictions with strict regulatory frameworks.

Polymarket’s History of Regulatory Challenges

This is not the first time Polymarket has faced legal scrutiny. In 2022, the platform restricted U.S. users following a settlement with the Commodity Futures Trading Commission (CFTC). The CFTC had fined Polymarket $1.4 million for operating unregistered markets, prompting the platform to implement significant operational changes.

More recently, Polymarket has come under the spotlight in the United States. Federal agents from the FBI reportedly conducted a search of Polymarket CEO Shayne Coplan’s Soho residence, seizing mobile devices in the process. The early morning raid, which took place shortly after the U.S. election, left Coplan without clear information about the investigation’s focus.

The Role of Blockchain in Prediction Markets

Polymarket’s use of blockchain technology has been a double-edged sword. On one hand, blockchain enhances transparency, making it easier to verify transactions and outcomes. On the other hand, it complicates compliance with national regulations, as blockchain-based platforms often operate across multiple jurisdictions without clear licensing frameworks.

The platform allows users to bet on a wide range of real-world events, from political elections to sports results. While this model has gained popularity, it has also attracted scrutiny from regulators concerned about unlicensed gambling and financial oversight.

France’s Importance to Polymarket

France has historically been a significant market for Polymarket, making the recent restrictions a noteworthy development. With the U.S. market already restricted, the loss of French users could impact the platform’s growth trajectory.

However, the restrictions may also be a strategic move to mitigate legal risks and avoid potentially crippling penalties. As regulatory scrutiny intensifies globally, platforms like Polymarket may find themselves forced to adapt or risk losing access to key markets.

What’s Next for Polymarket?

Polymarket’s recent challenges underscore the broader regulatory hurdles faced by blockchain-based platforms. As governments around the world tighten their grip on cryptocurrency and decentralized applications, platforms must navigate a complex web of laws and regulations.

For Polymarket, the focus will likely shift toward securing compliance in other jurisdictions while exploring opportunities for expansion in less restrictive markets. The platform’s ability to balance innovation with regulatory adherence will be critical to its long-term success.

A Broader Implication for Blockchain and Gambling

The Polymarket case highlights the growing tension between blockchain innovation and traditional regulatory frameworks. As prediction markets gain popularity, they will inevitably draw more attention from regulators concerned about gambling, financial stability, and consumer protection.

Polymarket’s experience in France may serve as a cautionary tale for other platforms operating in this space. Balancing compliance with the decentralized ethos of blockchain technology remains a formidable challenge—and one that will likely shape the future of the industry.

Conclusion

Polymarket’s decision to block French users marks a significant development in the ongoing regulatory scrutiny of blockchain-based prediction platforms. With a multimillion-dollar Trump bet at the center of the controversy, the platform faces tough questions about its operations and compliance.

As Polymarket navigates these challenges, its actions will set an important precedent for the broader industry. Whether it can adapt and thrive in an increasingly regulated environment remains to be seen.