- Internet companies in France have received instructions to wholly prevent the Polymarket website, due to alarms regarding rampant illegal gambling promotion and increasing traffic.
- The authorities raised concerns about the possibility of addiction and fraudulent cases on the platform, including an incident that involved the hacking of weather sensors to revise bets.
- France joins a growing list of over 30 countries, including Belgium, the Netherlands, and Poland, that have restricted the platform.
France has taken a strong step against online gambling. The country’s gambling authority ordered internet providers to block Polymarket, this move came on July 16, this year. The website allows its users to bet on news events.
The decision stops French users from even seeing the homepage. Consequently, this goes beyond an earlier ban on financial transactions. The regulator believes the site promotes illegal gambling.
Why France Decided to Block Polymarket
The French National Gambling Authority – known as the ANJ- has been watching Polymarket for a while. Indeed, financial transactions from France were already banned in November, two years ago. However, French users could still visit the website.
The ANJ says this is a problem. The homepage shows real-time odds for various events. According to the regulator, this acts like advertising for an illegal activity. Furthermore, they believe it encourages people to gamble.
The number of French visitors is rising. In June alone, the site had 578,751 visits from France. This is despite the transaction ban. Many users bypass restrictions using VPNs.
A major concern is the risk of addiction – the ANJ points out that Polymarket lacks protective measures. In contrast, legal gambling sites have tools to help users. Also, there are serious worries about fraud.
The regulator mentioned that some bets appeared rigged. For instance, weather bets revealed that sensors might have been hacked. Meteo-France filed a complaint in April this year. An investigation is now ongoing.
The Platform and Its Controversies
Polymarket is a prediction market in the US where people can wager money on probable outcomes. Events can include anything such as sports events or elections. Even matters such as wars and political decisions can also be subject to betting.
Due to the popularity of the marketplace during the US elections two years ago, many think it’s a new way of measuring public sentiment, but some believe that it’s just illegal gambling.
The site has faced backlash for several reasons. There are concerns about insider trading. For example, a US soldier recently faced charges – he allegedly used classified information to win over $400,000.
Also, some bets are seen as unethical. People can wager on wars or even the death of famous people. This has drawn strong criticism from many quarters.
Wider Implications and Global Action
France is not acting alone in this matter. Currently, over 30 countries across the globe have blocked or restricted Polymarket. Several European nations have taken similar steps.
Belgium, the Netherlands, and Portugal have comparable bans. The Dutch regulator even fines the site weekly. Poland, Hungary, and Romania have also restricted access. Poland has been particularly active in digital protection, recently banning mobile phones in schools for children under 15.
As a result, there is no configuration of unified rules across Europe. However, there are countries like Germany and Spain that have not done anything yet. The information shows the absence of united actions on this issue.
It is possible that ESMA, the European financial regulator, would change it. Recently, it announced that these contracts could be interpreted as financial instruments. Thus, they could stand as financial regulations instead of gambling regulations.
This is important for the wider industry. Prediction markets are growing in popularity. Rivals like Kalshi are also emerging. How regulators treat them will shape their future.
