Polymarket To Take Legal Action Against French Authorities For Taking Down Its Website

Polymarket is gearing up for a challenge in court after their website was blocked by French regulators. This move comes amid a wave of regulatory pressure on event-based betting sites across Europe wherein France spared its rival, Kalshi.

Polymarket To Launch Legal Action In France

Earlier this week, France’s National Gambling Authority (ANJ) had given a directive to the internet service providers (ISPs) to limit access to Polymarket. Hence, on Wednesday, July 22, the company has confirmed it will challenge this decision.

For context, the regulator previously stated that Polymarket’s services might impose significant wagering risks on its users. Moreover, they expressed issues with some of the prediction market contracts offered on the platform.

In response to the action, Polymarket claimed that it will challenge the decision in court in France. “We are disappointed by the French gaming authority’s (ANJ’s) sudden decision to unilaterally block our website — we intend to challenge this decision through the legal process in France,” Polymarket noted in a statement, per Reuters report.

Meanwhile, market leader Kalshi is looking to expand its perpetual futures to include gold, silver, and platinum products.

Overall Regulatory Pressure

The France conflict is part of a larger series of regulatory efforts against prediction markets like Polymarket. These platforms have become popular in recent years for enabling their users to guess on political, economic, sports, and other real-world events.

The sector has drawn billions in trading volume and so has the scrutiny surged from authorities from several jurisdictions. The regulators have raised doubts about the use of such forums and whether these should be classified as gambling service or financial markets.

France is joining other Europe countries in such a move. This has followed Spanish authorities temporarily banning both Polymarket and competitor Kalshi in May. Hence, the potential lawsuit in France will be an important test of the French model for dealing with the regulation of prediction market platforms.

The U.S. is also cracking down on prediction market sites despite the CFTC backing these avenues. The country’s top derivatives regulator also issued draft regulations in June to enable the development of a more formal and transparent regime for prediction market platforms.

Also, the U.S. House panel had launched a probe against Polymarket and Kalshi in recent months.