Gibraltar has taken a significant step towards establishing itself as a key player in Europe’s emerging licensed prediction market sector by unveiling its inaugural set of regulations. These new rules create a distinct category for prediction markets, separate from the existing Gambling Act of 2025.
The recently announced Prediction Market Regulations 2026 include various consumer protection measures and integrity protocols, one of which permits the use of stablecoins for account funding.
This regulatory framework was introduced approximately six weeks after WagerWire, a US-based betting marketplace, became the second entity to receive a preliminary license from Gibraltar. Under the guidance of Minister Nigel Feetham, Gibraltar aims to further develop its digital economy within the gambling sector.
“Our approach to regulating prediction markets is forward-thinking,” Feetham stated in an exclusive interview with Gambling Insider. “This tailored framework fosters innovation while ensuring a clear and strong regime for authorization, oversight, market integrity, participant protection, and financial crime prevention, all while safeguarding Gibraltar’s reputation.”
Gibraltar is now recognized as the first jurisdiction globally to implement a dedicated regulatory system for prediction markets, reflecting its commitment to maintaining high regulatory standards while being responsive to commercial needs.
In April, ADI PredictStreet secured the first prediction market license in Gibraltar and later became the official prediction market for the FIFA World Cup. WagerWire, although yet to launch its Wire Markets, intends to leverage Gibraltar’s licensing as a stepping stone for international growth.
“Gibraltar has made a pivotal move towards providing the regulatory clarity that this industry has long awaited,” said WagerWire co-founder Travis Geiger. “We are excited to be among the initial operators ready to develop under this innovative framework, which aims to shape the future of regulated prediction markets.”
The regulations clarify that prediction markets will not be classified as gambling in Gibraltar. They emphasize a commitment to a “transparent, responsible, and future-ready network,” focusing on market integrity and consumer protection.
Key aspects of the Prediction Market Regulations 2026 include:
- Establishing prediction markets as a new legal category, distinguishing them from betting, gaming, or lotteries.
- Operators must seek separate approvals for prediction market activities if they already hold Gibraltar gambling licenses.
- Self-certification of markets is prohibited, differentiating this process from the Commodity Futures Trading Commission in the US.
- Regulators have the authority to suspend any market and must ensure markets are resistant to manipulation.
- Prohibitions on markets involving criminal activities, serious injuries, terrorism, and other high-risk events.
- Implementation of consumer protection protocols and the allowance for stablecoins, which are pegged to assets like gold or the British pound.