Nine European gambling authorities have initiated a coordinated effort to tackle unlicensed prediction market platforms, ramping up their supervision of this rapidly expanding sector as betting activity spikes in anticipation of the 2026 FIFA World Cup.
Regulators from Belgium, France, Germany, Italy, the Netherlands, Poland, Portugal, Spain, and Switzerland have come together to launch a joint initiative aimed at enhancing cross-border collaboration against operators who provide prediction market offerings without the necessary local gambling licenses.
This initiative underscores Europe's increasingly stringent approach to prediction markets, which enable users to trade contracts based on the outcomes of real-world events such as elections, economic indicators, and sports competitions.
While U.S. regulators are still debating whether these products should be categorized as gambling or financial instruments, European authorities generally classify them as gambling activities that necessitate local authorization.
In a collective statement, the regulators expressed concerns regarding consumer protection and market integrity associated with unlicensed platforms. They highlighted that some of these platforms offer 24/7 access to betting-like products without enforcing mandatory betting limits or cooling-off periods, which raises the risk of gambling-related harm.
The regulators pointed out that inadequate age and identity verification processes on certain platforms pose additional safeguarding issues, particularly for younger users. They also called on sports federations, leagues, and clubs to closely examine their commercial relationships with prediction market operators.
Specifically, the regulators urged sports organizations to confirm the legality of their prediction market partners before entering into sponsorship or other commercial agreements.
As part of this initiative, the nine authorities committed to enhancing information sharing and exchanging expertise during and after the World Cup.
Enforcement measures planned include monitoring compliance with advertising regulations and betting integrity safeguards, launching public awareness campaigns on safer gambling practices, and taking action against non-compliant operators.
Possible sanctions may involve formal warnings, service restrictions, fines, advertising limitations, and account freezes, especially for operators relying on offshore or decentralized crypto-based licenses.
Several European jurisdictions have already taken steps against prominent prediction market operators. For instance, Spain's gambling regulator, the Directorate General for the Regulation of Gambling (DGOJ), temporarily blocked Polymarket and Kalshi in May, stating that these platforms were providing services in Spain without the required administrative licenses.
France and the Netherlands have also implemented geo-blocking measures targeting prediction market operators.
Prediction markets have seen significant growth in recent years, fueled by the rise of cryptocurrency, social media engagement, and trading-style market mechanisms. Unlike traditional sportsbooks, some platforms allow fractionalized stakes and offer markets on political, economic, and other non-sporting events.
This regulatory push comes as some European jurisdictions explore opportunities within the sector. Gibraltar has recently licensed ADI Predictstreet, touted as Europe’s first licensed prediction market operator, which launched ahead of the World Cup and was designated as FIFA's official prediction market partner for the tournament.
Malta, however, did not participate in the regulators' joint statement. In March, Economy Minister Silvio Schembri mentioned that Malta is “actively exploring the emerging field of prediction markets, an area experiencing rapid global momentum that presents significant opportunities for innovation.”
The varying approaches highlight a growing divide within Europe as regulators balance consumer protection concerns with the potential benefits of this emerging market.