Gibraltar Grants First Prediction Market License to Predict Street Ltd

Gibraltar has issued its first license for a prediction market operator. Minister for Justice, Trade, and Industry Nigel Feetham announced on Tuesday that Predict Street Ltd received authorization under the 2005 Gambling Act. The company’s license, granted on March 26, precedes the enactment of the new Gambling Act. Predictstreet.io is the official prediction market partner for the 2026 FIFA World Cup, set to launch on April 9.

Rapid Licensing Highlights Gibraltar’s Adaptability

Minister Feetham highlighted the speed of the licensing process, which he described as record-setting. He noted Gibraltar’s agility in the face of recent UK gambling tax hikes that pose challenges to the region’s gaming sector, a key contributor to its economy serving the UK market. With increased Remote Gaming Duty and Remote Betting Duty now in effect, Gibraltar faces potential tax rates of 80% to 100% for operators.

The gaming sector directly employs approximately 3,500 people in Gibraltar and generates about one-third of the territory’s tax revenue. Feetham emphasized the importance of the sector, stating, “This is an issue of vital importance to Gibraltar and one that may directly and indirectly affect our public revenues.”

Gibraltar’s Preemptive Move in European Prediction Markets

Gibraltar is the first European market to license a prediction market operator. This move comes as Malta prepares its own regulatory framework for the vertical. Malta’s Economy Minister Silvio Schembri recently expressed interest in the growing field, suggesting potential legislative changes. “We are actively exploring the emerging field of prediction markets, which presents major opportunities for innovation,” Schembri stated.

Elsewhere in Europe, prediction markets face regulatory challenges. In Germany and the Netherlands, strict rules against novelty markets are in place, effectively treating prediction markets as illegal gambling or unlicensed financial instruments. Both countries have barred leading operator Polymarket from operating. Despite these restrictions, Ismail Vali of Gaming Compliance International noted that data indicates ongoing user engagement with prediction markets across Europe.

Uncertain Future Amid Scrutiny and Growth

The rise of prediction markets in Europe occurs as they face increased scrutiny, particularly in the United States, where state gambling regulators are wary. The mixed regulatory market poses challenges and opportunities for growth. As jurisdictions debate the legality and regulation of prediction markets, the potential for innovation and market expansion remains a key consideration.

Gibraltar’s regulatory body will continue to monitor developments closely. The launch of Predict Street Ltd’s platform on April 9 will mark the beginning of its operations under Gibraltar’s jurisdiction.