Nine European gambling regulators have unveiled a collaborative effort to tackle unlicensed prediction markets. Timed with the kickoff of the 2026 FIFA World Cup, authorities from Belgium, France, Germany, Italy, the Netherlands, Poland, Portugal, Spain, and Switzerland aim to tighten the screws on this rapidly growing sector. Although the US grapples with whether prediction markets are gambling or financial tools, Europe largely views them as unlicensed gambling activities.
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Regulators Express Concerns
European regulators issued a joint statement expressing their unease over prediction markets—platforms where users wager on future event outcomes. The regulators identified several risks, including the lack of mandatory betting limits or cooling-off periods, which might escalate gambling harm among younger users. But of particular concern are platforms operating without local licenses, raising issues of consumer protection and market integrity. Verification processes on these unlicensed platforms are often weak, compounding safeguarding difficulties. But authorities also cautioned sports federations, leagues, and clubs to ensure any partners in prediction markets comply with legal standards before forming any commercial partnerships.
Commitment to Practical Enforcement
The nine regulators have pledged to bolster information sharing and expertise exchange to enhance compliance enforcement both during and after the World Cup. This includes coordinated monitoring of advertising and betting integrity. Social media campaigns will be deployed to promote safer gambling practices, and regulatory measures—ranging from formal warnings to sanctions—will target non-compliant operators. Enforcement might involve service blocking, fines, advertising restrictions, or freezing accounts, particularly targeting those using offshore or decentralized crypto-licenses. Spain’s gambling regulator, the Dirección General de Ordenación del Juego (DGOJ), recently ordered temporary blocks on platforms such as Polymarket and Kalshi, which were operating without mandatory licenses—a move echoed by France and the Netherlands through similar geoblocking actions.
Prediction Markets’ Rapid Rise
Fueled by cryptocurrencies, social sharing, and mechanisms akin to financial trading, prediction markets have ballooned in popularity. These platforms, offering more than traditional sportsbooks, allow fractional stakes and markets on non-sporting events. The dynamic nature of their real-time price movements blurs the line between gambling and financial speculation. Europe’s fragmented regulatory market complicates oversight. In Gibraltar, ADI Predictstreet became the continent’s first licensed prediction market operator, kickstarting operations ahead of the World Cup and securing a deal as FIFA’s official partner for prediction markets. absent from the collaborative statement was Malta, whose economy minister, Silvio Schembri, highlighted the country’s interest in exploring the rapidly evolving field of prediction markets.
Looking Ahead
The collaboration between these nine regulators signals a serious effort to bring prediction markets into compliance with European gambling laws. And it’s a strategic move to improve cross-border oversight and curb unregulated activities. The next key moment will be the World Cup, where regulators plan to intensify their coordinated actions. How effective these actions will be in curbing unlicensed operations remains an open question.
Garry Sputnim is a seasoned journalist and storyteller with over a decade of experience in the trenches of global news. With a keen eye for uncovering stories that resonate, Alex has reported from over 30 countries, bringing light to untold narratives and the human faces behind the headlines. Specializing in investigative journalism, Garry has a knack for technology and social justice issues, weaving compelling narratives that bridge tech and humanity. Outside the newsroom, Garry is an avid rock climber and podcast host, exploring stories of resilience and innovation.
