WagerWire views its newly acquired license from Gibraltar as a gateway to introduce its prediction market platform across the globe.
The concept first emerged during casual discussions at the Sigma Nu house at UCLA, where co-founders Travis Geiger, Zach Doctor, and Guy Dotan contemplated the intriguing idea of selling sports bets similarly to commodities.
Over the past five years, as they developed WagerWire, they were motivated by the belief that the legal sports betting landscape in the U.S. could improve, particularly in light of what they see as numerous shortcomings. They believe that prediction markets, although somewhat controversial, could potentially offer a better alternative. They see exchanges as a natural evolution of WagerWire's secondary market, which focuses on hedging.
“It’s the same light bulb moment we had on the couch,” Geiger shared in a detailed interview with Gambling Insider. “The idea has simply become more vivid.”
Unbeknownst to them, a significant development was also taking place in Gibraltar.
On Wednesday, Wire Industries, Inc., the parent entity of WagerWire, announced that Gibraltar's government has granted in principle a license for Wire Markets to operate a peer-to-peer prediction market. According to a press release, this approval positions WagerWire to “create a regulated international framework for prediction market operations and facilitate future growth into various jurisdictions worldwide.”
Nigel Feetham KC MP, Minister for Justice, Trade, and Industry, stated to Gambling Insider that WagerWire fulfills the rigorous criteria necessary for any successful applicant in Gibraltar:
“A company’s expertise in developing products focused on liquidity, price discovery, and consumer choice is increasingly important for the growth of prediction markets. Our evaluation considers the strength of the proposal, the suitability of the applicant, and their ability to meet Gibraltar’s regulatory requirements.”
Wire Markets joins Predictstreet as the second prediction market licensed by Gibraltar, as part of Feetham’s initiative to boost the territory’s digital economy. Earlier in March, Gibraltar granted a license to ADI Predictstreet, owned by the Abu Dhabi royal family, which has been appointed as the official prediction market for the upcoming FIFA World Cup.
WagerWire is aiming to launch its exchange this fall, although specific markets have yet to be disclosed. Doctor indicated that partnerships are on the horizon. Both the ownership group and Feetham view the Gibraltar license as a validation for potential licensing in other regions.
Wire Markets intends to kick off with sports event contracts that offer “deeper” options than those currently available on other prediction markets. The platform will also branch into pop culture, weather, and economic markets, while avoiding controversial and geopolitical topics, which Geiger described as low-volume distractions. Doctor added, “We are morally opposed to it.”
Wire Markets plans to establish compliance executives in Gibraltar and will hire an unspecified number of new employees.
“We believe we can establish this as one of the leading prediction markets globally. We aim to be among the few truly compliant operators. Our technology will support what we envision as the new standards in this industry,” they concluded.