ANJ issues warnings over prediction markets

• France’s gambling regulator, the ANJ, warns that prediction markets are considered illegal gambling in the country
• The ANJ highlights the risks of addiction and consumer harm, noting these platforms lack the player protection safeguards required of regulated gambling sites
• Platforms like Kalshi and Polymarket are criticized for using misleading language such as "investment," which can give users the false impression that participation is risk-free or not gambling

France’s gambling regulator, the ANJ, has issued a new warning outlining the dangers of using prediction marketsin the country.

The regulator has acknowledged the undeniable popularity of the sector and noted that prediction market platforms are now handling billions of euros worth of trades and are increasingly popular among consumers.

ANJ issues a word of caution against prediction markets

However, the ANJ also reminded consumers that French law does not recognize these platforms as legal, and specifically treats them as "illegal gambling."

"In France, these sites are not authorized and are considered illegal gambling sites. This is why the main operators, at the request of the ANJ, have implemented geoblocking, thus preventing any gambling from France (except via VPN)."

The ANJ cautioned that the websites often led to harm to consumers, similar to gambling addiction, and they needed to be avoided.

Any harm derived from participation in prediction markets was further compounded by the fact that these websites usually lack the rigorous player protection safeguards that usual websites enjoy. This could lead to a "significant addictive loop."

The ANJ also released an official breakdown of what prediction market platforms are, how much they trade, and what they offer. The regulator specifically singled out Kalshi and Polymarket as the "main players."

Lacking safeguards and an "illusion of investing."

Furthermore, the regulator cautioned against the language used by these platforms to promote their products, suggesting that the use of words such as "investment" suggested that it "reinforced an illusion" that these markets are not gambling.

"Media coverage of large winnings generated by prediction markets, along with the 'dream' of making 'easy' profits, as with crypto trading, reinforces this illusion in the player, who becomes someone who predicts the news better than everyone else," the regulator added.

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