French Gambling Regulator Tells ISPs to Block Polymarket

AI Market Summary
France's gambling regulator ordered ISPs to block Polymarket, escalating enforcement beyond platform-side geoblocking and signaling stricter treatment of prediction/event-contract platforms as illegal gambling when unlicensed. The action highlights ongoing concerns around missing safeguards, weak KYC, and data integrity/manipulation risks, reinforcing broader global regulatory pressure (including US state and federal disputes). Near term, it increases compliance risk and distribution friction for crypto-adjacent prediction markets.
Impact level
● Medium
Affected assets
BTC/USDT+0.71%
AI Insight · BTC/USDTAI Insight
▼ Bearish
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France's national gambling regulator has instructed internet service providers to block access to Polymarket, saying the platform's prediction contracts amount to unauthorized gambling under French law. In a Friday statement, the Autorité nationale des jeux (ANJ) said online prediction services are treated as illegal gambling when they are not licensed through France's regulated framework. ANJ added that Polymarket is not authorized to operate in the country and cautioned that promoting unapproved gambling services can constitute a criminal offense. The regulator said fines can reach 100,000 euros (about $114,000). The decision highlights intensifying regulatory pressure on prediction and "event contract" platforms across Europe and other markets, where authorities continue to debate whether these products should be classified as gambling, unlicensed financial instruments, or a separate category. ANJ cited more than licensing. It argued that Polymarket's product design resembles regulated gambling offerings, while lacking standard consumer protections used in France's legal gambling market. The regulator described platform mechanics as potentially "addictive" and pointed to the absence of safeguards typically required in authorized venues. The watchdog also raised integrity concerns around certain markets, referencing instances where outcomes could be manipulated. ANJ cited examples involving weather-related contracts, noting allegations that weather sensors may have been hacked and that some bets "appeared to be rigged." It said the concerns align with findings connected to a probe by the cybercrime unit of the Paris Public Prosecutor's Office, reported to have started in May 2026. ANJ also said investigators flagged weak identity controls, including a lack of Know Your Customer (KYC) checks. Regulators have increasingly focused on this combination of gamified incentives, limited user verification, and questions over how external data is validated when assessing prediction products. France is the latest jurisdiction to curb access to Polymarket. The source article cited restrictions or blocks in Singapore, Poland, Portugal, Hungary, Ukraine, Brazil, and Indonesia. Polymarket has said it geoblocks users in 36 regions, reflecting the market-by-market approach many platforms take to compliance. France's ISP-level order marks a tougher enforcement stance by targeting local internet access rather than relying solely on platform-side geofencing. ANJ had previously signaled plans to block Polymarket in November 2024 over alleged non-compliance with French gambling rules, making the latest move a formal escalation from intent to implementation. Regulatory scrutiny has also escalated in the United States. The source material referenced earlier coverage stating that on June 17 Kentucky sued five prediction market platforms, including Kalshi and Polymarket, alleging unlicensed sports betting, and that at least 17 other states pursued similar actions. It also noted that the Commodity Futures Trading Commission (CFTC) sued eight states, arguing they encroached on the agency's exclusive authority over federally regulated event contracts. Across jurisdictions, the central issue remains classification: whether prediction contracts are treated as gambling products requiring local licensing, or as market instruments subject to a different regulatory regime. ANJ's decision makes France's position clear and puts the focus on how Polymarket responds on authorization, identity verification, and data integrity, as other European regulators weigh their own next steps.