France cracks down on prediction markets over gambling risks and weak protections
French gambling regulators have raised concerns over the rise of prediction market platforms. The Autorité Nationale des Jeux (ANJ) warns that these services, often framed as investment tools on yahoo finance, closely resemble gambling—and may lack proper consumer protections.
The ANJ has highlighted several risks tied to prediction markets. These include attempts to manipulate event outcomes for financial gain and the absence of safeguards like age checks or deposit limits. The regulator also points to user behaviour, noting that participants may overestimate their ability to predict outcomes—a phenomenon described as the 'illusion of competence.'
One of the largest platforms, Polymarket, has already restricted access for users in France after discussions with the ANJ. However, the regulator remains vigilant about other operators that might still target French customers. The warning follows a broader trend, with authorities in the UK and the Netherlands also leaning towards classifying prediction markets as gambling.
The ANJ's concerns extend to market fairness. Licensed gambling operators face strict regulations, while unregulated prediction platforms offer similar financial risks without oversight. Media coverage sometimes reinforces the idea that profits are easily achievable for those who interpret events correctly—further fuelling participation.
The ANJ's stance reflects growing regulatory scrutiny across Europe. While no prediction market platforms have been officially licensed in the EU, the regulator's warnings signal potential future restrictions. The focus remains on protecting consumers and ensuring a level playing field between regulated and unregulated services.
