In May, Peter Thiel’s Founders Fund invested in Polymarket, a cryptocurrency betting platform. The platform gained significant attention during the recent U.S. presidential election. Polymarket allows users to bet on the outcomes of high-profile events using cryptocurrency.
It aims to be a more accurate predictor than traditional pundits by combining news, polls, and expert opinions into market odds. However, the French National Gaming Authority is now investigating Polymarket. The regulator stated, “We are familiar with this site and are currently examining its operation and compliance with France’s legislation on gambling.”
Polymarket is not authorized to operate in France.
An official familiar with the investigation said the platform had been under scrutiny since before the U.S. election.
Founders Fund backs Polymarket betting
A cryptocurrency news publication reported that the authority was preparing to ban Polymarket in France.
During the election, bets on Polymarket favored Donald Trump, even though mainstream forecasts showed a close race between Trump and Kamala Harris. One French user notably bet $28 million on Trump’s victory using four accounts, influencing the platform’s odds. Polymarket investigated this trading activity and found no evidence of market manipulation by the user.
Gambling platforms are heavily regulated in France and must receive authorization from the regulator to operate. Polymarket, based in New York, had previously settled charges from the U.S. Commodity Futures Trading Commission in 2022 for allegedly operating illegally. French regulators are assessing whether Polymarket has breached French gambling laws and are considering further actions.
Polymarket declined to respond to requests for comment.
